Make a long story short. My husband was layed off from his job. During this time we had to use our credit cards to get us thru. We have a total debt of $68,000. This includes credit cards, personal loan, medical bills..and so on (we have three children). Our mortgage payment is $1900 a month. I make roughly $41,000 a year. He just recently got hired back..but at a lower pay. Befre that he was out of work for 5 months (no income) due to breaking his wrist (resulting in surgery). We have no car payments, but need both cars due to different work schedules ..and kids school schedule. Right now, we are a month behind in payments to 80% of the bills we have. He had filed for BK back in 1997 (before we got married-bills from him fighting to get custody of his son). Any suggestions on what to do? I was thinking about consulting a credit consolidation company..but have read some scary stories on the board regarding this.

We have only had our home for 2 years. Have no equity. Tried to refinance to get lower payment but were told we dont have enough income. We have more going out then coming in. The house is worth way less than what we bought due to the housing market taking a tumble.

Any advice would be appreciated.

What does your budget look like?

Total income less necessary expenses, anything left over?

This past month, I took home $2600.

Basic Household Bills:
Mortgage: actually $1985
Car Insurance: $213
Utilities $130
Heat $30
Water $25
Seward $55
garbage $72
Basic Cable/Internet/Phone: $99 (was higher..got packaged deal.)
Food: minimum amount as possible
Gas: $100-$150 (like to wait till the gas needles gets beyond E before filling up..lol)

Hubbys first check is $600 (just started working). Right now our debt payment (including past due amounts) is $2700. Without past due amount..average payment for debt is $1534..give or take $100. My student loan $6,700 is on forbearance but will be ending soon..so will have to add that payment in the mix which is around $80.

It looks like your budget has been pared down to the minimum--good work there.
However, have you looked at your withholding to see if it can be changed so you bring home more money? Given your income and family situation, there should be next to nothing being taken out of your income for taxes (of course I'm assuming you itemize).

Also, please list your debts -- what you owe and at what rates.
Some creditors are easier to negotiate with than others.

bb