Need Some Advice About Bankrupcy/debt Elimination.

Definitely do credit consolidation. The bankrupcy laws have also recently changed, so it's a lot harder to file, plus, if you just have a few credit card issues, you don't want to file anyway. Just talk to a counsler (it's free) and they will set you up.

T. - I have been in your situation before, and trust me, you do not want to continue the path you are on. It is great that you are making your mortgage payments on time...keep doing that, as well as car payments and find a way to make the minimum credit card payments on time. These are all important. It sounds like you need to figure out a way to earn some more income. School is important too, but you have to find a way to meet your families' basic needs before doing more. Bankruptcy, especially Chapter 13, is very difficult and stays on your credit for years. Most of the debt elimination companies are just scams and cost you even more money. Dave Ramsey teaches an EXCELLENT debt relief program called the Financial Peace University that MY FAMILY HAS COMPLETED AND CLEARED AWAY ALL OF OUR DEBT FOR GOOD ;-) He has several books on the subject, and if you can find one, attend the 13-week Dave Ramsey Financial Peace course that is offered through some churches. We did that and it saved our marriage and our finances! The Dave Ramsey program has you put family first (house, food, clothing for your children, transportation), then whatever is left is to save, give and pay off debt. He teaches you to live within your means and stop using credit cards. He also has a pay-off plan where you negotiate with your creditors and create a plan (like the debt elimination programs) that YOU control where you pay the highest balance or highest interest rate card first (the most money) and then pay everyone else the minimum. First, you need to find a way to make more income....it IS possible! You can get yourself out of this mess! Good luck and God bless!

http://www.cccservices.com/home.asp

We have used them. Before bankruptcy you have to go through a debt management company. This one is non profit. Our counselor is Joyce Keethler. But any are great. They will work with you and are honest.

Hi T.,

My husband & I are also taking the Financial Peace University class by Dave Ramsey. It is helping us understand about setting up a budget, tithing, saving, investing, ect. It is a fun course, and easy to follow. We are in our 9th week of class...and are learning so much. I have been wanting to do this since we got married, it will be 12 years this year...we have a son who's 9 & a daughter who's 15 months! I am a stay at home mom, and work part to full time as a Massage Therapist. I know this course will help you and your husband find the financial peace you are looking for. Dave offers some of his packages on eBay...you can pick one up pretty cheap, make sure it has his DVD in it...he's great to watch! If you can attend classes, even better...call your local churches & see if they are offering the class. God sure has blessed us since we have been applying Dave's principals. I will need your email address to put you on Dave Ramsey's link. Please contact me with your info. Thanks! God Bless you & your family.

T.,
I know how you feel. I too am going to school for nursing and I have an 8 year old boy and a 6 year old girl. I am on medical leave again for reinjuring my shoulder at work so money is tight here as well. When I hurt my shoulder the first time I was off work for 1 1/2 years and in that time I learned to bargain shop and make pennies stretch. Watch sale ads like crazy, thrift hop at places like the Goodwill and Salvation Army, and other little shops. I have found some fantastic finds and most with the tags still on them. With having smaller kids you can also go to the dollar stores and find great deals in there also. Another is PRAYER. Give it all to God honey and he will help see you through it all. He has helped us a lot and he can help you too. I hope this helps.

A. G

T.,

I was in a similar situation after college where I had a ton of credit cards and was not able to make payments on all of them. What I did was go to the Consumer Credit Counselors. They take all of your credit cards and call the credit card companies and get your interest rate lowered. You make one manageable payment to them and they pay all of your credit card bills for you. I did this about 10 years ago and totally got out of debit. It does sound like you need to start working to make some extra money. I went to college full time and worked at night in order to make ends meet and pay for my college.

Hello. I completely, totally understand your situation. It seems like no matter what we try we just can't seem to be able to make it, especially since all the prices of everything around us keep climbing. I started babysitting, which has been helpful to our income, and fun for our kids. You can contact your credit card companies to see if they have an alternative plan. I would beware of christian groups out there saying tithing will make a difference (see www.biblestudents.com under the Bible topic of tithing) although it is important to give to God, he does not want us to go into debt because of it, it is more important we give ourselves to Him. I have found thrift stores to be a life saver, watering down juice, combining driving trips to save on gas. When my husband was in school, we took out student loans to help pay for necessities, it has low intereset rate and we have 20 years to pay it off. Good Luck!

T.,
I know how financial problems can overpower you. There arn't really any easy answers, unless you have a relative or someone who is ready to "bail you out", you are on your own.
Put the brakes on the spending! You could also have a part time job while going to school - many people do it successfully.

Talk to some banks about a consolidation loan to refinance your house and roll your credit card debt into the same loan. That would give you some breathing room right away. But at the same time you and your husband need to work on establishing a budget that you can live within. You probably have heard this already. Unfortunately, as adults, we are suppose to have all the answers and make all the right decisions - it doesn't happen all the time!

If the financial problems continue you may need to sell the house and rent to lower your monthly expences till you are able to get ahead again. It's better to sell intentionally than to forclose.

Good luck and stay strong! You arn't just pulling through this for yourself, your doing it for your kids. You and your kids may not realize it, but they are aware and will learn a lot from how you handle this.
S.

My husband and I have started doing a program by Dave Ramsey- it is called total money makeover. You can get the books at any book store or check out his website....DaveRamsey.com.....He aslo does seminars and offers classes...It has changed our lives....check it out and good luck

Hello T.. I'm sorry to here of your tough times. Please try debt consolidation first. DON'T do bankruptcy unless you have absolutely tried every other angle. What bankruptcy lawyers don't tell you is that it will follow you around for 10+ years. It's a hard to find credit when you want it or need it. It's possible to find some credit at times, but at a substantially large interest rate. I hope you find an answer for your problems. Also, make sure your debt consolidation company is backed by the BBB or ask for references. Good luck!!

Hi T.-
My husband and I actually had to file bankruptcy in Nov of 05 due to him being laid off for a long time and I am a stay at home mom. We tried several different debt consolidation options prior to that but bankruptcy seemed to be the only option for us it was hard but we are starting to get back on our feet and can already get credit cards(which may be a bad thing!) and we have gotten a loan on a vehicle since then as well. I guys only you know your exact situation but unfortunately sometimes bankruptcy is the only option. Feel frees to ask me any other questions you can think of about the process.

I would also suggest the Consumer Credit Counseling. It's free and they will tell you how to get out of debt and how to set a budget so that you will stay out of debt.
Good luck!

go to daveramsey.com. dave is a charismatic christian and tells it like it is. he's a God send, literally. good luck :)

Hi T.!

I'm sorry to hear of your situation, but have you maybe tried a debt consolidation program? My mother got herself into a bit of trouble at one point and went through a company called "Profina". They really helped her by lowering her interest rates and making one payment, by which she could afford. I'm sure you can access them online to check them out also. They are reputable. Hope this helps!
Goodluck to you!
H.