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What are my options to solve maxed out CC's?

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Moderators please move this if i have it in the wrong forum. Thanks.


I have apx $33000 (almost 100% utilization) credit debt.

I owe $169000 of a $176000 home loan. Apx 2.5 years into a 30 year mortgage.

$20000 for 2 car loans. $15k on the one i drive and $5k on the one my girlfriend drives. One loan ends in 10 months the other 22 months.


No other assets or liabilities. No savings no investments no 401k nothing. Income is $1000 (take home) per week and i am currently living paycheck to paycheck. Like literally paycheck to paycheck without even enough to buy food or clothing. My girlfriend covers day to day expenses.


$1400 mortgage

$1000 car loans

$1000 Credit minimum payments

$500-600 Cell Phone/Internet/Electric/Gas/Insurance


I keep getting offers in the mail from companies like Meridian that claim they will roll my mortgage and credit card debt into a new loan with a lower interest rate. My credit score has dropped from 780 to 660 over the last two years due to (i assume) maxing the cards out. Is this a legitimate offer? Why would they "help" me? What are my real options for eliminating the credit card debt?

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welcome to CB!


you need to do what you can to increase income and reduce expenses. the money management subforum has several "pinned" topics on budgeting: https://creditboards.com/forums/index.php?/forum/35-money-management/


I would not take out a loan that moves unsecured debt to a secured debt. depending on your scores you might be able to get a BT offer.


it sounds like you're driving too much car for your budget.


the best way to pay off your cards is to pay the highest interest rate first and minimums on the others. and. stop. using. them. until you can always pay in full.


the most important thing right now is to get on a written budget.



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Agree with Hegemony. ~$4000 per month take home tells me you're probably grossing somewhere around $75K per year depending on your tax rates. $500 per month per car isn't unreasonable, especially if you're on a 36 or 48 month note.


This sounds like yet another case of using the plastic to expand/extend one's income and lifestyle. It sometimes works - for a while. I know because I did it once when I took an income cut to avoid a layoff. Its not a smart strategy and it took a long time to get back into the positive cash flow.


Utilities - go on budget billing, set the thermostat to no lower than 72 summer, no higher than 68 in winter. If you can hang up the clothes to dry instead of using the electric dryer. Internet - bare bones plan. Cable - cut out the TV portion and buy rabbit ears. Cell phone - there's lots of pre-paid and alternative services out there that are cheaper than the Big Three.

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Posted (edited)
On 7/29/2019 at 12:28 PM, ChimkenNuggies said:

My girlfriend covers day to day expenses.

In addition to the good advice above, does your GF live with you?  


If so, when you create your budget, make sure she's contributing half of everything.  


If you're carrying the mortgage, both car payments, all of the insurance, plus property taxes, etc., she isn't contributing enough by just buying groceries and an occasional restaurant meal.


If any of the credit card balances are purchases that were made by her or exclusively for her (and not unsolicited gifts), she should fork over the money for that as well.


Make sure you aren't being played.


Edited by cv91915

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I was in a similar situation and Upstart did give me a loan, but I did not have a $1000 car payment. Try to cut down your phone and utility spending. I have the cheapest phone plan from verizon, only internet, and try to minimize my electricity cost. If you have an unlimited plan you may be able to just get rid of internet altogether. Also talk to your GF, if she really loves you she will sit down and work with you on a budget and plan to get rid of the debt. Would it be worth selling the cars and using the profit to buy older used cars so you can save $1000 a month? I only have 1 car payment and that helps a lot.

Sent from my SM-G920V using Tapatalk

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