I lost my husband four years ago. It has been a struggle for me to keep up with everything. I had a motor lock up in my car, which cost $5,000.00. I had a company call me and talk me into a online business which I later learned they did not follow through on. Total cost was about 15,000.00. I charged this to a credit card. I have barely been able to pay these bills but I had a little left from insurance and that has dwindled. I need to do something so I can keep my home. I think I have too much debt to income ratio to refinance my mortgage at this time. So my question is I owe 17,000 on one card and 8,000 on the other. I was wondering if I should try debt settlement. And I was hopeing you could actually recommend an honest company. I have been following the reviews on Franklin Debt Relief company. Still not sure about them.
Or if I could get my parents to help me with the 8,000 maybe I could refinance and pay off the other one. I might actually qualify if I could get rid of the 8,000. I know there’s no way to begin to pay off the 17,000.
You seem knowledgeable on these things, what do you think I should do?
From what you have shared I see someone who has been in a downward financial spiral for some time. You’ve made ends meet by using credit to get by but you are almost at your limit for being able to make the increasing credit card payments and deal with everything else.
If you wanted to try debt settlement, that might be a possibility for you but rather than refinance the house which would be expensive and simply secure the debt against the home, you should consider an unsecured debt consolidation loan through LendingClub.com to raise the funds to settle.
But because you are just getting by, I really question if that approach makes sense for you. The better approach may just be to pursue a fresh start and put the financial sins of the past behind you quickly, live within your income moving forward, and get yourself in a position to save money to protect yourself from financial surprises in the future. The way to do that is with bankruptcy.
Please post your responses and follow-up messages to me on this in the comments section below.