What can i do? please help?

Question

my husband and I are 2 months behind on the mortgage because we cannot afford it. we are behind on credit cards too because the interests went up the roof. we do not qualify for debt manegement or chapter 13 because we make just enough for our expenses. we cannot file chapter 7 because they will take our home away. we just had a baby. what is the solution? we want to keep our house.

Answer 1

You've been living beyond your means. Too much house, running up too much on your credit cards (you shouldn't charge more than you can afford to pay off each month) and I'll bet you have too much car too. A car payment that drains too much of your monthly expenses. What it boils down to is you have to cut back your lifestyle. Maybe a smaller less expensive home, no more eating out. Trade in the car(s) for less expensive ones. No fancy clothes or jewelery. Good luck.  

Answer 2

I found this book pretty useful: http://www.TheTruthAboutDebtCures.com  

My personal opinion, as someone going through the same thing is to just stop paying and then just before they foreclose ask them to lower the loan amount.  THey did it for me and also a friend of  mine!

Good luck.  

Answer 3

I would contact a consumer credit counseling service in your area, look in the phone book.  They will analyze your income versus your monthly expenses and debt to understand your financial situation and recommend a course of action.  They can negotiate with your credit cards to lower interest and payments and suspend late fees.  They may also be able to work out a payment plan with your mortgage lender.

The down side to using consumer credit counseling is that it appears on your credit history as a bankruptcy, but that would be preferable to losing your home.

God bless.