Anyone Tried Debt Consolidation?

Question

My husband and I have a boat load of credit card debt (between me being laid off and him being on disability it got out of control just trying to survive!). I keep hearing commercials for Debt Consolidation and getting payments you can afford, blah, blah, blah. Has anyone used one of these services? How did it work out? Any suggestions for getting out of debt (oh about $50M or so). I own a home but unfortunately the way the market it I almost owe more than I could sell it for. I don't want to lose my home. That's my biggest worry. Thanks. Lifes rough right now.

Answer 1

Sorry to hear this but there are millions of people in the same boat.

I would bypass the advertising hype and the TV smiles, and go get some legal consulting.

If you fall behind in the mortgage, you could lose the house anyway.

Talk to an asset protection attorney.

Answer 2

During a tough time when we were barely making it from paycheck to paycheck because of all the credit card debt we went to Consumer Credit Counseling.  CCCS is non-profit service organization which negotiates with your lenders to get interest rates dropped or reduced and make new payment arrangements.  They help you to create a budget and counsel you in how to live within your means.  

This was a great learning experience for us.  We've gotten a little too heavily in debt again (12 years later) but not so bad we can't help ourselves out - since we learned so much from the CCCS experience.

Though it's a humbling experience to have to ask for help, I urge you to consider it.