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lost job, have equity, and crazy credit card debt...now what?


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Hello

I have about 140k in credit card debt which turned to 20+ interest after a couple of years of zero credit. 

Another 45k in student debt

FICO 2 is 732. Credit Karma etc are about 600 due to high debt. No derogs. All clean - long history - good mix of credit.

Have not paid uncle sam on my 1099 this year. About 19k.

Now the contract is over. I get to choose between credit card bills and food. 

- Do I call the credit card companies and tell them?

- Do I cut all the payments to credit card companies as they are due around the 10th of the month?


Am trying desperately to get a home equity loan to pay it all off. I have a good amount of equity and can pay off that loan through gig economy jobs (lyft, uber) until I get a new contract. it is even possible that I will get this contract back two weeks from now when the dust settles.

 

please advise. am in bind.

 

Edited by theGman
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There are a handful of startups that are attempting to automate most or all of the underwriting associated With a HE product.

 

https://www.figure.com Is one of them.

 

When I checked the rates weren't great; they're commensurate with the additional risk of limited underwriting.

 

Do not lie one the application if you go in this direction.

Edited by cv91915
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@shifter: thanks

@cv91915: this will involve a credit pull and take the 732 down further. are these guys competitive to what i might find from a loan broker. i have 30 days given that my latest paycheck just came in.

 

@hegemony: yes. 

@hdporter: about 40 is business cards.


 

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8 hours ago, theGman said:

this will involve a credit pull and take the 732 down further. are these guys competitive to what i might find from a loan broker. i have 30 days given that my latest paycheck just came in.

I can't tell you what their rate will be.

 

I think it's a soft to get an offer, but regardless, where do you expect to get a HE loan/LOC without a credit pull?

 

Inquiries cost almost (or exactly) zero points anyway.

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16 hours ago, cv91915 said:

There are a handful of startups that are attempting to automate most or all of the underwriting associated With a HE product.

 

https://www.figure.com Is one of them.

 

When I checked the rates weren't great; they're commensurate with the additional risk of limited underwriting.

 

Do not lie one the application if you go in this direction.

On.

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thank you cv91915 and Lander.

 

i went to a mortgage broker. says 6% based on bank statements with the monthly deposits that have posted in the past 11 months. as long as employer is willing to say i'm still there. and 4% if i am really there. scores came in at 732, 699, 690 or something like that.

 

trying figure.com next.

 

my employment contract that ended was a 1099. employer wants me to take a W2 and is both exploitative and micromanaging plus a 4 hour round trip daily commute. may have to swallow pride if that W2 is still an option. and then quit after a couple of months when this is over. (sorry, i forgot to disclose this in the original post).

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3 hours ago, theGman said:

employer wants me to take a W2 and is both exploitative and micromanaging plus a 4 hour round trip daily commute. may have to swallow pride if that W2 is still an option. and then quit after a couple of months when this is over. (sorry, i forgot to disclose this in the original post).

Desperate times call for desperate measures. As bad as that is, it seems better than the alternative. 

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  • 1 month later...
40 minutes ago, theGman said:

How about a DMP

 

From what I understand:

1. It will cut the interest rates to 8% from 22%

2. Not affect credit scores

3. Give me time to get a W2 and conventional financing against the house.

 

Thoughts?

 

DMP is no better than a BK13 and don't let them tell you it won't ruin your FICO scores.

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haha. ok. case closed.  :)

 

hard money loans are not working either.

 

no derogs, fair amount of equity, and ability to easily pay off everything on loans between 3-10% (just not 23%) and no options to be found. yet,

Edited by theGman
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US Census?

 

Also it may or may not be too late to get trained to do tax preparation for one of the mass-market companies.  From the mopes I've seen sitting in temporary cubicles just inside the entrance to Walmart, the bar isn't very high.

 

No offense.  :)  

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  • 4 weeks later...

ok. getting close to default time. can't make the payments for april (4/10). no lates yet but by 5/10, the first lates could hit.

 

given the virus situation, what are companies doing here?

 

are they:

1. accepting missed payments?

2. allowing transfer to low or zero cards for a year? (ideal but i am dreaming).

3. other things?

 

what should i and should i not reveal to them??

 

please advise! :)

 

 

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ok. thanks @shifter you are always very helpful.

 

how much do i share with them? my contract actually ended a month or so before the corona thing started. however, i did sign up for lyft/amazon delivery and so on and came up with a plan to hold the ship steady until i could get a new contract or w2 job. however, lyft etc are pretty high risk in this area right now so there are no options. i don't expect to get in the swing of things, between virus and job search, for a few months at least.

 

so, again, what to share and what not to share with them.

 

 

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