Enjoy, your site, been reading it a lot the last few weeks.
I have about $70, 000 in unsecured debt. Owe $22,000 on the car. House that was worth $240,000 is down to $205,000, but I owe $198,000. I got a ARM, loan about 4 yr ago, sounded to good to be true. It had a 3 yr penalty for early payoff. First year of on-line payments, system issues and it would only let you make the “mininum” payment. Before I knew it, balance of $200,000 was up to $210,000. 2nd year the min. payment jumped up to $2000. a month. However, when your net pay is about $2200 a month, doesn’t leave much. I have tapped into my 401K. Owe that $18,000.
Do you think Counseling can help or should in throw in the towel and start over.
Credit counseling can help in certain situations but not all. You might want to first read this previous article for some insight. See The Honest and Unvarnished Truth About How to Get Out of Debt.
Right now the situation appears to be one where no matter what you do about the other debt, the mortgage payment is simply not going to fit within your income and leave you enough for your necessities.
You’ve probably been making ends meet by taping the retirement money and using the cards to get by. The reality of the situation is you are probably very negative each month.
Based on what you’ve shared it sounds like the house is simply too much of an obligation for you to handle on your income. It might be time to start thinking about selling the house or handing it back to the bank. Then you might want to think about bankruptcy to discharge your other debt and get a fresh start.
Please post your responses and follow-up messages to me on this in the comments section below.