I am just a regular middle class single parent American. Although I have a Doctorate and a relatively stable job at a University, I only make $3000/mo. Until recently I was receiving child support but now I am short $1000 a month and still need to pay my mortgage, car, ATT bill and a $25000 credit card debt. I hardly have any cash left every month for FOOD! I called the American Debt Foundation for debt consolidation, but I found they are getting a big profit out of my business over 41 months (about $8000 to their pocket). I also called Take Charge America and the offer a better deal, both monthly and over 5 years.
Which is the best way to go about my situation when you come out “even” at the end of the month? Debt consolidation? If so, which is the best (most honest) company out there? I first called all of my credit cards, and they did offer a reduction in the APR (12.99 to 9.99%) Of all my credit cards, Barclaycard (Juniper-iTunes) was the only one not willing to offer me a program to pay off my debt or a lower APR. All others had programs but no one offered a 0% or a 2% not even a 6% that the consolidation agencies offered. What to do?
I am desperate with this situation.
Thanks for your time!
Based on what you’ve shared I can’t see how either Take Charge America or American Debt Foundation can offer you a plan that makes any sense. You have $25,000 of unsecured credit card debt so your payment on that is probably about $575 or so a month and you are $1,000 negative each month. You can’t afford to enter any debt repayment program.
I think you need to seriously consider bankruptcy. I would advise you to click here to find a local bankruptcy attorney and go talk to them, tomorrow!
Even with bankruptcy you will still be negative each month, but far less negative. To make it back the rest of the way to break even and above you will need to either reduce your remaining fixed expenses, like the home, or increase your income.
Generally the two largest expenses in the home are mortgage payment and car payment. You might have to even consider giving back the home or the car to further reduce your expenses and get back to a safe level of life expenses.
I need to get you to a place where you are not only break even but also able to start saving money each month to protect yourself from future financial disasters.
All of this is hard to face and emotionally difficult to live through but I guarantee you, if you grab the bull by the horns, accept responsibility for the situation, and take decisive action to address the situation this will get better fast.
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.
You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.