$125,000 Credit Card Debt? We are a married couple, both are 32 year old, we lost

We are a married couple, both are 32 year old, we lost jobs 2 years ago & come up with $125k unsecured debt. Now both are working & our monthly income is around $6k before charge, which is $4500 after.
Our expense for home rent, car payment, �� is more or less: $3500. So what remains is $1k to pay minimum payment of credit cards, which is much better than that; however we do not have any late fees so far.
We do not want to turn to any program that affects our credit scores as both of us now own professional jobs with the greatly good income potential in 6-10 years from immediately.
We have been thinking of the followings:
- Enrolling surrounded by a debt consolidation program & pay $7k over 3 years instead of $125k in the cost of our credit
- Enrolling surrounded by a ��hardship�� program & pay $155,k ($125k + interest) over 5 years & save our credit. (monthly donation 3K)
- Finding another better way!
We would appreciate if somebody tells us which of the option is better for us & why?

With warm regards,
Simon

Answers: If you are still competent to obtain credit, try to get as lots credit cards that offer 6-12 month 0% promotions as possible. Transfer as many of the balance as possible, which may cost 3-5% of the amount of the balance. Pay down the remaining higher rate credit cards so that you are reducing the principal balance.

Usually, once you transfer a balance away from a credit card company, they will propose you a promotional rate to carry a balance next to them again. If you are able to start moving balances, you may find that you are getting offer from your existing card providers for relatively low rates, which will allow you to begin paying down principal instead of simply paying interest.

I would be very cautious of any "fix" that will show up on your credit report (i.e. settlement, bankruptcy, etc). As a Banker, I am always exceptionally reluctant to lend money to someone that has walked away from their obligation without a VERY good basis. On the other hand, if someone has worked concrete to dig out of a difficult situation, that speaks favorably to their character and I am much more predisposed to lend money to them. Remember that the "easy" way out is rarely confident...

I can't tell you which of the options is best.

But I'm wondering where on earth you live that rent/mortgage is so expensive? If you own your home - could you sell it and move someplace smaller? Sell your car, and buy a used one? Hi Simon. Consider making more money near each of you getting a part-time, second charge.

Many professionals work 60 to 70 hours a week their entire lives, so you two can do it for just 5 to 7 years to pay stale all of your debt. As a couple, you can easily earn an secondary $1000 (after taxes) each month with unpaid jobs.

Best wishes and good luck. I don't know what the interest is on your credit card debt, but from the sound of it I'll bet its at least 50% high than the 1K you are paying each month. IE you are paying the minimum but your overall debt is still going up $500 per month (probably alot more). If you could get that debt moved down to a not bad rate (like 6% or so - what you'd pay on a morgage) you'd probably be able to swing it but near no asset for collateral not sure how you are going to do that.

You only option may be ruin, I really hate to go that route but you may be to far contained by. Anyhow, don't dig in any deeper. Go check on misery programs and everything and see if there is any way to come up beside a reasonable program. If you can't work anything out where you are paying down the debt next just go for collapse, better now (with 125K in debt) than latter (with 200K or whatever) in debt.

First start by destroying your credit cards. Keep one for emergency but start to use cash and checks for your daily expenses.

From after on you need to just start paying down the stability. If there is a program which will help you take-home pay it faster without harming your credit adjectives the better. ultimately you are going to have to bite the bullet on one or the other. If you managed to spend 125k, and didn't plan on making at smallest the minimum your kind of in a impossible way. Some options you do own are

A. If there is any equity left contained by your house you can consolidate
B. Refinance the loan at a lower rate or make it a loan rather than a dash of credit.
C. Try to settle the debt and ask that they do not report it on your credit as settled.
D. Evaluate what you need your credit for in the instantaneous future. If you utilize a credit counseling service all of your other credit cards will freeze up, if you enroll contained by a hardship, that may still affect your credit. Is 1k enough to settle up this off anytime soon? You may want to think roughly speaking the long term and remember that credit only stays on for 7 years, expenditure history only reports the last 2-3 years. So you may hold to struggle.

The best entry to do is free up more capital. You'd be surprised how much you can actually live short if you try, and you'll have that debt paid down MUCH sooner.

I expect the debt consolidation program would be best for you. But pay all the debts rather coz only that could help you to fix your credit.

I dont know whether you hold already enrolled in any debt command plan but then I know a debt consolidation company http://ezconsolidation.com which can help you to plan your debts. You can try if you want.

Simon....I don't know how to give an account you this but....your screwed.....get to a financial guy....the only track..

Ever thought about reducing your living expenses and car payments? If you lowered rent by moving into a cheaper apartment, rode the bus or traded contained by for something with lower payments--it seems as though you're still living outside your finances. Sit down and budget, cut wherever you can--if that means downsizing your lifestyle and selling bad items...it may be worth it in the end. Best of luck.

You need to trim the monthly expenses further or variety more money, or both. It's that simple. Trim your expenses by getting a cheaper place to live, drive a junkie car, eat out smaller number and live on a tight budget. Sacrifice is just that - SACRIFICE. Determine what is essential from non-essential. The fact that you manage to rack up $125,000 in credit card debt is staggering and shows that you (and your spouse) lack financial discipline, adjectives sense, or both. Also, cut up the credit cards and pay cash for everything. Both of you should grasp second jobs or find a way to bring within more money as well. Good luck, but you two got yourselves into this mess and have need of to change your ways otherwise you are doomed to repeat this mistake. Once you make the lifestyle change necessary, here is how you pay it adjectives off: Make the minimum payments on every credit card and put all of your extra money (after you cut expenses and cause more) on the one with the highest interest rate until it's gone. Pay bad the card with the second highest interest rate subsequent, and so on and so forth. I would look into a debt consolidation loan or do a set off transfer to a new card beside 0% to save you on some of that interest you might be paying right now.

Make an investment...that will hopefully triple what you have...or at least double it.
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