I have been out of work for over 18 months. I own apx 46,000 to credit card companies. I am still collecting unemployment but not sure when it will run out. I own a house with equity in it but cannot get a refinance or home equity loan because I am not working. My debt is building and I can no longer pay even the min, payments I was told by a lawyer that if I file for BK they will make me sell my house. I have to try a debt reduction company. My current credit score is around 740 and I am current on all of my bills including the credit cards.
Can you suggest a legitimate company that does debt reduction. I understand how the programs work and I know that my credit score will take a huge hit but I don’t see any other way out. Can you suggest something?
To be honest, you will be eager bait for most debt reduction companies that will try to sell you some B.S. magic debt reduction program because they will recognize you are scared and have set certain limits on what you want to do, the house. They will promise you they can get you out of debt without selling your home but they will be lying to you.
Unless you find a job and replace your lost income, no debt program is going to work for you since your income will expire before the debt does.
Rosemarie, it sounds like you’ve got a valuable asset there, your home, and before this all comes tumbling down and you potentially lose the home you need to seriously consider selling it, take the equity, resolve your debts, and start over.
If you don’t take action the creditors will sue you for your delinquent debts and attempt to place liens against your home. Don’t let this situation roll over you, get in front of this, and sell.
Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.