Question:

What to do with new found debt and mortgage that went up?

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my wife just handed over mounds of debt (through her gracious efforts of assisting her mom...she has left) ican not pay the monthly payments...I had great credit before. She took out a 2nd mortgage in an attempt to pay off...my mortgage was an adjustable rate that just went up costing me $400/month...creditors are calling and i dont know what to do...I want to make everything right?

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First of all, I know all too well about debt collections... I did it for about two years, and it doesn't help much when you're behind on bills. Start by sending any creditors that are calling you written request to only commuicate to you in writing. Per the Fair Debt Collection Practices Act, they must abide by that.

Second... understand what's going to affect you the most. I know you're concerned about your credit, and that's a good concern to have. Any type of retail installment contract (mortgage, auto loan, any type of loan secured by collateral) is going to have the overall largest affect on your credit score. As long as you are making a sufficient effort to make your monthly installments, the majority of creditors will be willing to work with you. Just make sure to stay in contact and get something to them each month. Unfortunately if you do get a little behind, the decline of your credit score is unavoidable, but once you do get back on your feet, there are several easy ways to rebuild it.

Lastly... only consider bankruptcy as an ABSOLUTE LAST RESORT!! When you apply for credit, even if you've had negative history, the first thing underwriters look at is any public records that appear (bankruptcies, small claims, etc...) A 30 or 60 day past due mark on your credit still looks a lot better than a bankruptcy!

Best of luck to you!
Report (0) (0) | earlier
Hi,

I used "Credit Solution" to settle my debt and improve my credit score.They managed to reduce my debt up to 58%.It's legitimate. I came across this company on NBC News Special Edition.Check it out here:

http://nanoref.com/linksynerg/KvHqGQ
Report (0) (0) | earlier
Chapter 13 BK may be the best bet to keep the house. Isn't marriage grand?
Report (0) (0) | earlier