100,000 credit cards debt. Wwyd?

amother

OP ↓

Mon, Nov 11 2024, 12:24 pm

We had major health issuesin our family and accumulated debt. Django just lost his job and wants to ask someone rich in our community that he is very close to and helped us before for help but idk how to approach the situation. We own our house. We have a lot of payments that total to 12000 a month including credit card minimum payments without food and misc. after losing dh job our income is 8000 a month. We live in California. Our kids are older but two girls still live at home early 20’s. Dh said he needs to come up with a plan before he asks for help if at all. What should we do. We have equity in the house probably at least 300,000 but I want to live in the house at least 2 years until the girls finish college and beezras Hashem get married. What is the best plan? I know it looks hopeless.

amother

Stoneblue

Mon, Nov 11 2024, 12:35 pm

Can anything be removed to lower your monthly payments of 12000?
Would it be worth it to look into debt consolidation?
I know Kosher Money did a podcast about this a while ago...

amother

Bone

Mon, Nov 11 2024, 12:39 pm

I am sorry you are going through this. You are SO lucky and smart for owning your home outright.

Bzh your dh will find new work very soon. I would do a debt consolidation to reduce interest payments. It’s wonderful that your kids are living with you but could they contribute a bit to food household expenses? Just until your DH finds work.

What other payments do u have that you can reduce? Are you paying for your kids schooling? If so I would stop that for now.

The debt is big but once dh has found work you’ll have a big shovel and can knock it out in a year

amother

↑ OP ↓

Mon, Nov 11 2024, 1:35 pm

Dh doesn’t have good prospects to fund a good job because of changing in the industry. I can only think that if we eventually have to sell the house and move to a cheaper place. I I can’t anything from the 12000 it’s all payments I can’t elaborate

amother

↑ OP ↓

Tue, Nov 12 2024, 6:31 am

I watched the episode in kosher money it was very good. I need to talk to an expert but before that should I pay the minimum payment for few credit cards that due today or it’s better to start stop paying now

Raizle

Tue, Nov 12 2024, 6:35 am

Can you get a bit of help for the immediate payments that you owe right now and then work on consolidating your debt?

amother

↑ OP ↓

Tue, Nov 12 2024, 8:09 am

Raizle wrote:

Can you get a bit of help for the immediate payments that you owe right now and then work on consolidating your debt?

I still have the money to pay the minimum payments but I was wondering if it’s a good strategy to stop paying before dealing with it. I heard from our credit line on the house that we can’t ask for help unless we were behind on our payments. I wonder if it’s the same with credit cards.

amother

Brown

Tue, Nov 12 2024, 11:13 am

That is 1000% a question for a professional and not random anonymous people. You could really mess yourself up by taking the wrong advice here

amother

↑ OP ↓

Tue, Nov 12 2024, 11:48 am

amother Brown wrote:

That is 1000% a question for a professional and not random anonymous people. You could really mess yourself up by taking the wrong advice here

Do you know a professional? I heard there are non profit organizations that do that but idk their names and contact numbers

amother

Pistachio

Tue, Nov 12 2024, 12:15 pm

theoneandonly wrote:

You can settle the credit card debt either by yourself or there are companies that do it for you.

In order to settle you need to have the funds available to pay off the settlement amount immediately

There are debt consolidation loans that do it for you- settle it and pay it- then give you a new monthly payment with a loan from them

I’m in a similar situation OP, except I can’t sell my house or use equity for a loan. I think I might need to declare bankruptcy just to get rid of all the debt, if that’s even possible- but I’m not sure how that works if I co-own a home

amother

↑ OP ↓

Tue, Nov 12 2024, 12:28 pm

amother Pistachio wrote:

I’m sorry to hear. I think there is one bankruptcy chapter that lets you keep the house you live in.

nechama123445 ↓

Wed, Nov 13 2024, 11:49 am

There is a company that is very reliable and I have had personal experience using them that can help with credit card debt.

They helped me get 0% interest on some of my cards on a 5 year payment plan without it affecting my credit score at all for a flat fee ( they charge only upon successfully lowering your banks rate).
It’s worth to give it a shot, you can reach them at 718-603-8995. They are wonderful to work with and very helpful with most banks. Hatzlacha on your situation.