Comments on: We Owe $80,000 On Credit Cards – Where To Start?

By: ginger

ginger — Sun, 08 Aug 2010 04:21:27 +0000

Wow, I think there’s a lot more to go over here. I’ve recently gone through a similar situation with my parents. They were under water on their house, have roughly $25,000 in credit card debt, which might seem doable, except for their advancing age and health problems. End result? They’re doing a short sale on their house and have moved into an apartment. Check your states tax laws to see how a short sale or walking away would affect you. They now can pay down the credit card debt and sleep at night.

Forget the emotional attachment to the house. It’s an object. It’s not your soul.

I also agree with another poster about seeking counsel. That’s a lot of money to spend without getting some guidence.

Also, talk to the credit card companies (after getting credit counseling). In my own experience from hospital bills, you can generally pull the “poor” card and they’ll reduce. My emergency surgery went from $32,000 to $10,000 just by me asking, and holding out on paying for a few months. My appendix will be payed off this November! Woot! Mainly, they just want to make sure they get something from you, even if it’s not as much as they’d like.

My parents are so much happier and healthier without the constant struggle. Did they do this to themelves? Of course! Did they think they would be fine and work forever without there ever being a problem? Yep. Do they know better now? You bet.

By: 42 Personal Stories of Credit Card Debt Hell | CreditScore.net

42 Personal Stories of Credit Card Debt Hell | CreditScore.net — Thu, 01 Jul 2010 16:16:40 +0000

[...] Frugal Dad: $80,000 in credit card debt, wondering where to start? [...]

By: deb

deb — Thu, 10 Jun 2010 14:41:48 +0000

Dave always gives good advice and the snowball effect does indeed work. You should also attempt to negotiate your debt down as much as possible.

By: Desperation frugality: 30 ways to make or save money

Desperation frugality: 30 ways to make or save money — Mon, 22 Feb 2010 05:25:35 +0000

[...] Dad had a reader plea for help recently. Short story: After two years of her husband’s unemployment, she’s used every cent of [...]

By: Ed

Ed — Sun, 21 Feb 2010 17:25:42 +0000

My wife and I were $70,000 in credit card debt four years ago. We worked with Money Management International (http://www.moneymanagement.org/) to consolidate our debt and reduce the interest – not the principal. We are now at 23,000. $1,440 is automatically withdrawn each month. Our credit rating has gone up and we were able to refinance our house to get a lower interest rate a few months ago. We no longer use credit cards and if we cannot afford we do not buy it. Don’t loose heart, be patient and be willing to hold a couple jobs. Things will eventually turn around. Use caution when selecting a debt management company, some are scams. Also, be careful considering taking a reduction in the principal since it will considered income by the IRS. Will you be able to pay the taxes, interest and penalties? The IRS can be pretty unforgiving, but you can work out payment plans.

By: sewingirl

sewingirl — Sun, 14 Feb 2010 06:26:22 +0000

I can’t believe not one person mentioned contacting a certified, not for profit, credit counseling agency. I realize most people are down on the fact that they charge a fee, but I can personally tell you that there are great benefits also. We worked with one for 7 years to pay off a $250,000 medical bill, and related expenses. As soon as we signed the contract, they contacted all of our creditors, many stopped the interest accruing at that point, and ALL of the phone calls stopped. It was worth it for that alone! They negotiated with many of the account holders, and in the end we payed a little over $27,000 in total, and our credit report was as clean as a whistle! Many have a free consultation, give one a call and see what they could do for you!

By: –› Should You Use Savings to Payoff Debt?

–› Should You Use Savings to Payoff Debt? — Thu, 11 Feb 2010 14:31:26 +0000

[...] We Owe $80,000 On Credit Cards – Where To Start? [...]

By: gn

gn — Wed, 10 Feb 2010 23:48:26 +0000

Get some professional advice before you write another check to the credit-card companies.

I suspect your best option involves making the card companies unhappy and keeping your house, but it depends on a lot of other information we don’t have.

By: family finance

family finance — Tue, 09 Feb 2010 22:53:54 +0000

In response to the anti-debt snowball people, my wife has personal experience with dealing with credit card companies and their “finance charges” interest.

We had $20 on one credit card and forgot to pay it over a year and a half. We ended up owing over $300 due to finance charges and interest. She called them up and told them she forgot and had all the finance charges and interest dropped.

So I think if you work with each individual credit card company they would drop the interest and finance charges… dunno if it would work with over $80,000 in debt, but it worked with our $20.

In this way, doing the debt snowball would be most logical way of getting rid of one creditor at a time.

By: Lillie

Lillie — Tue, 09 Feb 2010 15:46:48 +0000

In reference to the credit cards, an option is definitely to contact the credit card companies. Despite the bad rap that many debt collectors have, many of the major companies have hardship programs available and are willing to work with consumers who are proactive and express a willingness to pay the debt rather than avoiding them.