My husband and I are trying to figure out what our best move is right now.
Basically, we realized our debts slowly overcame our monthly income to where we began paying money out of our savings to cover. Using these forums, we created a budget, a tight budget, but we were alright.
But over time, we ended back up in a bad situation. Due to emergencies both in the home and vehicle, we ended up again in the red each month. We are trying to figure out what our best means from this point are. We would really appreciate your input to help us figure out what we need to do.
My husbands median credit score is 710 (myFico) and mine is 620. Mine is because I thought I paid a Kohl's charge when in fact the interest accrued and it went 30-days over. Just about all cards and loans are in his name and I'm an authorized user on some. I have three cards in my name, one of which has a balance. Otherwise, we both have the mortgage.
We've tried for balance transfer cards and consolidation loans, only to be denied due to increasing debt and DTI.
We have four cards with zero balances, each with $5k limits and can do balance transfers. Their rate is 2x12.9%, 14.9% and 16.9%.
Our debts are as follows (most credit card rates are +20%):
Creditor Min Payment Balance Amex 35 3235.54 Barclay 159 5200.81 Paypal 68 2094.21 Citibank 25 1299.05 BBRZMC 39 3060.05 Amazon 167 5853.77 Capital 1 262 11844.82 Venture 193 6598.79 Capital 1 217 8281.45 Capital 1 147 4939.68 Penfed Visa 84 4208 Penfed Loan 636.17 18650 Lending Club 421.24 11250 Alliant Loan 275.88 5565 Student Loan 421.64 60k+ Internet 36.69 netflix 12.83 Car Insurance 101 Cell Phones 112 Water/Sewage 85 Electric 250 Mortgage 1414
We are planning on getting rid of Netflix and changing phone providers to save money. However, even after doing that we are still -$142 per month after paying the minimums and utilities.
We do have $10k in our savings which we are willing to put to whatever we can to get back in the black, and we are willing to each get a side job for extra income.
We don't know what our options are. We have other cards that have zero balances, and are current on all of our bills. We just want to get ourselves to a point where we are back in the black each month and have money left over to pay for groceries, gas a bit extra to work on a snowball for our credit cards.
We were contacted by Fr33dom D3bt R3lief, but after hearing their pitch, don't like how settlements rely on us defaulting and hoping that the creditors accept the settlement offers or face litigation.
We don't want to even consider Bankruptcy, especially since we have been out our house only a little over 2 years. But then again, who ever really wants to declare bankruptcy?!
Ideally, we want to work this out on our own. But with pets, groceries, gas, and draining our savings to bring down our payments, we aren't sure what to do.
We need someone who isn't emotionally stressed out by our situation to provide us some logic, please?
Thank you and I'm glad to finally be posting on this forum. Although, I wish it wasn't because of this situation!