Help — drowning in debt!
We have gotten ourselves into a big debt hole. We have to refinance our house before december in order to pay my parents for a vacation loan they wanted us to go on, dads wish. It has to be paid no later than Dec. So we are having to finish our home to get the refinance. In the mean time we are drowning. We have no money left after paying all our bills, not even enough for gas and groceries. We want and have to, to get help to reduce our debt. Will we be able to get help and also be able to refinance? Where do we start and who to trust? We can't keep going this way. Paying for gas and food with cards isn't going to work. Help?
Terry Says
OMG -- you are in a deep hole. Stop digging! Immediately call 800-388-2227, which will connect you to the nearest local office of the National Foundation for Credit Counseling. They will go through your situation and help you find the best solution. Just going for counseling will not go on your credit report. But if they put you in a debt repayment plan -- where you send one check each month to them, and they get your creditors to agree to a lower monthly amount -- that WILL impact your credit and your ability to refinance. I can't resist adding this: Your DAD wanted you to go on this vacation trip, even if you had to borrow the money??? I'm going to assume that you never told him how deeply in debt you were already, and how this loan might impact you. NOW is the time to come clean. This weekend. Set up a face to face meeting, including your spouse. If they will repay the vacation loan, some of the burden will be lifted. Tell them to take it out of your inheritance! Or offer to repay when you get back in control of your finances. One other thing: I've always thought it is easier to earn more than to cut back. Can each of you get a part-time job and put all the money toward your debts? Even for a year? Even doing something out of your career path -- like waiting tables or babysitting for a neighbor? Every little bit you add to earnings will whittle down your debt, and the interest your are paying.
