My wife and I are 60 and she has a good income of about 88k.
I usually make around 70k, but have been unemployed for 8 months now. We own our home, 225k on the HELOC and 64k on the 1st. The 1st will be paid in full in March of 2014. That will free up about $1900 per month. We have a rental house that is worth 175K and it is paid for. We get $1100 per month rent for it. We have never been late on any payments and I have a FICO score of 702. My wife’s is usually higher, as she has less debt. We don’t believe in car payments, so we drive nice older cars and pay cash.
I have 93K in credit debt, which equals about $2800 per month in minimum payments on the six accounts. I want to do the best thing to protect my credit ratings. I would like to pay off the money I owe on them. I have talked with FinancialSolutions in California. However, I am not sure if they are for real or not. They would negotiate the interest and have me paid in full in 56 months on five of the six accounts (79K). My payment to them each month would be $1917. They must be charging around $200 a month for their services. What’s your advice?
By the way, It is called Financial Resolution Center. They are in California but are one of those company’s
that use the 1100 Pennsylvania Ave (6th floor) Washington DC address on their flyer. 800-994-1799 is the phone number
It seems unreasonable for you to embark on a monthly payment debt program while you remain unemployed.
But if you want to double-check to see if the payment plan makes sense for you, click here for credit counseling information.
I’m going to provide a generalized bit of advice, if you get a mailer using the same Washington DC address I’ve written about before, run away.
It seems the logical approach to maximize your credit and reduce your financial exposure in these uncertain times is to sell the second house, pay off the credit card debt and keep searching for a job.
Please post your responses and follow-up messages to me on this in the comments section below.Big Hug!
Get Out of Debt Guy - Twitter , G+ , Facebook
If you have a credit or debt question you'd like to ask just use the online form .