My husband lost his job, owe to 19 credit cards behind 90 days! What Can I do When he does not make as much!?

Question

My husband lost his job making $ 42,000 a year and he was the main provider of the household, we missed 2 mortgage payments and behind on 19 credit cards, there is no possible way we can catch up on that many credit cards and keep our home and cars and the way gas, electricity and food prices are going up, we are in a huge jam! can someone give us advise, we do not want his wages garnished, is bankruptcy our only hope? I do not think we can even afford a debt settlement program at the rate they even suggest! He is now making $ 36,000 a year and my wages have stayed the same, very low! He now has to pay for my health insurance to top all of that off with the new job which is outrageous. Is there any hope for an American anymore or must I go Mexican or Canadian as a citizen and head for the borders with my husband to get a new life start.

Answer 1

well I would go to the Bank and see if you can out all these credit cards together and get a  low payment.Then cut all your credit cards up but one,and that one is just in case you have an emergency.No one should ever have that many credit cards that's just temptation and debt waiting to happen.Chat to your loan people that your house is and see if they can help you.I would Spend only money for bills and food and NO extras!

Answer 2

It looks like you feel really screwed up by this problem. Hope you may found helpful here.http://health-insurance.tips4free.info/h...

Answer 3

Both of you are going to have to get part time jobs, at least temporarily.  There is only one way to dig yourself out of this hole and that is to increase your income and STOP using any credit cards.  

A. Get part time jobs (or maybe two part time jobs)

B. Have a garage sale next weekend.  Sell anything and everything that you don't absolutely need to raise some quick cash.

C. If you have car payments, sell the car with the highest payment first.  You will still owe money on it, but it will be much less than what you owe now.  If you owe money on both cars, sell both.  Buy one or two CHEAP used cars for cash.  No more credit for anything.

D. Get you mortgage caught up first

E. Pay your utilities next.

F. Pay for food.

Here is a plan for you.  If you work the plan, the plan will work for you BUT you need to live below your means from now on.  If you can't pay cash for whatever it is, then you don't need it!

1. Make a budget. Make the budget a week before you get paid. A budget is not a punishment! It is a tool which will free you from ever having to worry about money again. Put everything in your budget. Especially those annual, biannual, or quarterly bills like car registration, insurance, etc. Give every dollar you are going to bring home the name of where it is going. Add an "emergency fund" category to your budget for 25 dollars and save up until you have 1000-1250 dollars. Your emergency fund will help keep you from getting into new debt because of an emergency. If you can, set up a direct transfer to a savings account for your emergency fund. That way it moves automatically and you don't even have to worry about it. You must cut your spending and live on less than you make.

2.First get current on all of you debts and make no more late payments. Stop using your credit cards immediately. Do not take on any more debt. Credit cards are like quicksand only the death is much slower. Make a list of all of your debts in order of highest interest rate to lowest interest. Use cash only for your spending from now on.

3.Pay the minimum due on all of your debts and then put your extra money towards paying off the highest interest one first. After you get that one paid off, you put the money you were paying on debt #1 (the minimum payment and the extra payment) towards debt #2. That will pay debt #2 off faster. When that is paid off, you put all three payments towards card #3 and that one will be paid off pretty quickly. As an example:

To start :

Debt #1 (highest interest): minimum payment+ extra payment

Debt #2 (middle interest): minimum payment

Debt #3(lowest interest): minimum payment

Debt #1: paid off

Debt #2: minimum payment from Debt #1+ Minimum payment from Debt #2 +extra payment

Debt #3: minimum payment

Debt #1: paid off

Debt #2: paid off

Debt #3:Mimimum payment from card #1+ minimum payment from Debt #2+ minimum payment from Debt #3+ extra payment.

That way, you will get them all paid off, on time, and pay the least interest. It will also help towards rebuilding your credit since you will no longer have any late payments. This works no matter how many different debts you may have.

4. After you get all of your debts paid off, add to your emergency fund until you have 6-12 months of income saved up. Put that emergency fund money into a liquid money market fund or into a Bank of America no-risk CD so that if you need the money you can take it out without penalty.

5a. When you have your emergency fund in place, add a category for "fun" to your budget. Save for a holiday, a vacation, a big screen, or dinners out, whatever goal you want. Remember to enjoy your life.

5b. When you have your emergency fund in place, start saving for your retirement. Join the 401(k) plan at work and contribute the maximum. Your employer probably matches at least part of your contribution so why give up free money. Open a Roth IRA and contribute the maximum on a monthly basis. If you start saving for your retirement now, you will probably retire a millionaire.

5c. Start saving for the down payment on your new house. You need to put down at least 20% so that you don't have to pay PMI (private mortgage insurance). Make sure that when you buy your house that your payment (principal and interest) is no more than 25% of your takehome pay or 30% if that includes principal, interest, taxes, and insurance. If you get a larger payment than that, you will be "house poor" and you will be a slave to the house payment. You need to give yourself room in your budget to actually have a life and some fun.

5d. When you have your emergency fund in place, start saving for your next car. Only buy cars, or other things that depreciate, with cash. Save up for a nicer car. That way you get the interest instead of paying the interest.

Answer 4

i would check out this link... http://tinyurl.com/personal-loans they helped me get a loan pretty fast and helped me pay off my bills

Answer 5

there is always hope for people who LIVE WITHIN THEIR MEANS.

Answer 6

Wow...it's crazy that a person would even be silly enough to have 19 credit cards. What could you possibly need 19 credit cards for? Even making 42,000/year isn't enough that a person should have 19 credit cards.

That being said, unless you guys can find a way to either make more money, or spend way less then I guess you will be in a jam for quite a while. Understandably life is hard, especially now a days, but you guys got yourselves in this jam, you should do what you can to get out. Go you your bank and  speak with a financial advisor. They can consolidate your debts, or give you information on how to budger. And no offence, but you seem to need it

Answer 7

He makes $42,000 and you have 19 credit cards.  That says it all.  Why are earth do you think either Canada or Mexico would have you?

You need to either file a bankruptcy or get serious credit counseling (which you will get as a part of a bankruptcy).  You are on the brink of foreclosure so you better move fast.