Wе аrе еіthеr declaring bankrupcy οr getting credit counseling… Wе hаνе 20,000 іn credit card debt аnd 10,000 іn secured debt. Mу husband аnd I mаkе аbουt $2000 a month combined. Wе′re ѕο behind οn ουr bills аnd need tο mονе out οf mу mom’s house аnd bυу a beater car!!! Hοw much approximately wουld ουr payments bе еіthеr way? And whаt wουld уου suggest, bankrupcy οr credit counseling? Thank уου
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Check consumer credit counseling first. See if they can help you. That way any negative stuff will come off your report quicker and you won’t gave attorney fees.
Credit counseling is good IF you can afford to pay back your debt. If, on the other hand, you don’t have the extra funds to pay them back in 2-3 years, bankruptcy is better.
Beware, there are many dishonest credit counselors out there. Check yours out!
Okay, well bankruptcy should always no matter what be a last option. To find out how much credit counceling payments would be, call them and speak with them. Go through all of the questions and tell them about your debt and they should be able to tell you what a payment should be without you making a commitment. Don’t agree to “join” until they tell you what the payment would be. If you’re not sure after they do tell you, tell them you will call them back and get a direct phone number back to that person. Don’t be afraid to waste their time. It took me about an hour or so to get an actual payment amount from them, then I didn’t call them back cause the payment was higher than what they would be with me just going the way I was.
Bankruptcy might not be an option. It is very difficult to get credit card debt forgiven now, and you cannot get secured debt forgiven. I also would not recommend debt consolidation. There are other ways of paying off your debt. I highly recommend attending Dave Ramsey’s Financial Peace classes, or at least getting his book. If you file bankruptcy you have to go through a financial planning class anyway, and this one does qualify. You can find out more here:
http://www. daveramsey. com/
While Dave Ramsey does approach the topic from a Christian perspective, if you are not religious don’t worry too much about it. He does give quotes from the Bible, but they are minimal, and he draws more on these quotes as tidbits of wisdom, not a “you should do it this way because it says so” perspective. Just taking his class has helped my wife and I considerably with our finances.
I would also talk to a bankruptcy lawyer, just to get accurate information. They will sit down and talk with you for free, and usually will tell you what bankruptcy can and can’t do for your situation. While I still recommend against bankruptcy, you should make an informed decision.
Look, under the new bankruptcy laws passed in October of 2005 you have to go through 6-months of credit counseling before you can declare bankruptcy anyway.
Call Consumer Credit Counseling Services, they are free and will work with your creditors to lower your monthly payment and your interest rate. I used them several years ago and was debt free in 36-months.
One of the things that need to be made clear is how long after bankruptcy you are applying. Another important topic is the type of credit card you want to apply to. And finally, another issue is the things you can do in order to boost your chances of getting approved for a credit card after going through a bankruptcy process that has ruined your credit score and history.
How Long After Bankruptcy Are You Trying To Apply?
It’s is definitely not the same to apply for a credit card right away after bankruptcy than applying after two years or applying past ten years when your bankruptcy will be removed from your credit report. You need to understand that bankruptcies on your credit history scare lenders and financial institutions away and if the entry is in your recent credit history, chances are that you’ll get declined.
Truth is that there is no particular time period specified to apply for a credit card after a bankruptcy process. Yet, most lenders and financial institutions would agree that a two year period is the least time required for applying to obtain any kind of financial product if you have gone through a bankruptcy process in the past. Thus, though you may get a credit card sooner, don’t expect to obtain an excellent deal. Read more about it at: http://www. credit-card-gallery. com/article/194,Credit_Cards_After_Bankruptcy_Is_It_Feasible
“Credit counseling agency are filled with experts, to help you get out of debt. These agencies have programs which helps to solve the problems.
Debt management programs helps you to prepare a budget which help you to tackle the situation. You make an agreement with the agency to start the process of clearing your debts completely. The counseling agency then negotiates with your lenders, and fix a lower monthly payment. “
I suggest going to ‘daveramsey. com’. And get his book; ‘The Total Money Makeover’. Bankrupcy is a horribily unpleasant ordeal. Dave Ramsey can show you the way out if you will follow his lead.
All the best.