Quote:
Originally posted by nazz
This is a great thread and very generous of NoSoup to spend so much time giving excellent advice.
Here's my delimna.
I own a $136,000 home with $106,000 debt in my mortgage.
I have foolishy maxed out two credit cards with about $10K on each. In my defense, a large portion of that was medical expenses that I wanted to avoid collection on.
The interest rates on the two cards are not terrible at 12.9% and 9.9%.
The problem is that with all of our bills I'm barely able to make the various payments every month and the two credit card payments are just killing me. It's over $400/month just to make minimum payments.
I already refinaced my home about a year ago and I know it would not be well received at that bank if I returned so soon.
I feel like I'm drowning in debt and broke all of the time even though I make 50K/year.
What should I do?
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Well, working from the information you have given me, I would suggest possibly getting a 2nd mortgage to consolidate your Credit Card debt. Because it is paid back over a longer term, your payments should be significantly lower. However, simply because you have a lower payment doesn't mean that you should make less of a payment on the balances that you owe. Hopefully, though, it will give you more spendable cash and make your debt seem less mountainous.
If this wouldn't work for you, please explain your situation with a little more detail and I'll see what I can do
