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What options do I have?

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Brief rundown:

For years it was smooth sailing. Had an emeergency fund of 2 months and thought we were good.

Through several hospitalizations (medical issues) and a few bad breaks we've run into issues.

Spouse had to take a decent pay cut, and I had to leave my highly compensated job in the city for a step backwards to be closer to home to help with children and take burden off SO.

I work in Sales and most of my compensation is commission. It's a long sales cycle and will take 2+ years to return to previous #'s, but didn't have a choice.

    SO cannot work more (medical) and I am working on as much as I can to try and build up compensation. I can't take a second job, because I need to help witj kids.

We've both got serious credit dings from utilization. No late payments though. Homeowners and some home equity, but not enough to make a major difference.


Currently have $70K in cc debt at 14-28%. We can make payments, but barely scraping by. We could pay it off, but with the interest stacking, making it impossible. Called and asked for reduction is APR or pause and were denied. Some said that reason was high utl rate. Tried getting consolidation loans or a 0% offer,  but can't with credit with high utilixation.


Any ideas/options? Feel we tried all and totally stuck with no way out.





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Is Spouse at least getting disability now? So it appears you have to take care of both spouse and kids? Any options for moving closer to other family members that might help out with adult and child care? 70K of CC debt and for all practical purposes no home equity is pretty significant, and you're making minimums on the cards.


Presuming your annual income is less than your unsecured debt - your options are Bankruptcy, Debt Management Plan (for example Greenpath) or a Debt Settlement Plan (scams you hear about on talk radio)

Unfortunately all will wreck your credit for years to come. DMP will close out all of your credit if it isn't already and you won't have any new credit available to you until you complete the plan. It won't reduce the principal, creditors usually just significantly discount the interest while in the plan. Guesstimating you'll be about 7-10 years in a DMP with that kind of unsecured debt. A settlement plan basically waits until you're in default then negotiates with creditors to get them to take a lesser amount of principal under the threat of bankruptcy. Be aware though some creditors now treat settling for less than full amount the same as a bankruptcy - you'll be blacklisted, and working with a settlement plan might trigger a creditor to throw a lawsuit at you.


Then of course there's BK - and that would be up to yourself and an attorney for which one works better for you - 7 or 13.

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