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Ratings. Guidance. The Right Lawyer.
Should I file bankruptcy, negotiate my interest rate down or stop paying the debt?
Philadelphia, PA
Viewed 966 times.
Posted about 1 year ago in Bankruptcy / Debt
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I am carrying a large debt burden and need to do something quick. What should I do?
Home Mortgage (interest only) $ 250,000 at $1,400.00 per month Credit Card debt at 7.75% 48,500.00 with interest payment of $ 300.00 each month, i send 500.00 per month Car Loan 10,200.00 with payment at $ 380.00 per month Truck Loan 15,000.00 with payment at $ 312.00 per month Vehicle Insurance $ 125.00 per month Utilities at $ 400.00 per month Groceries/Vehicle Gas/Phone/Misc at $700.00 per month My take home income per month is $ 3,700.00 As you will see i am in the negative every month. I am about (2) months away and my savings will be down to $0.00 then i will be in the red from then out. I want to avoid bankruptcy if i can because i feel these debts are my mistake and want to satisfy them but the reality is i am sinking deeper into debt every month. I have tried negotiating my interest rates to 0.00 but none of the companies are willing to work with me. Currently all of my payments are made by the due date so i am not behind yet. I have to have the truck for work and have had the car forsale for 6 months with no bites. Please help! - Is this your question? Add additional information Answers (1)
Gabriel Cheong
This attorney is licensed in Massachusetts.
Posted about 1 year ago.
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Note that I am not licensed to practice in your state.
Your expenses are $3617/month and your income is $3700/month. If you pay the minimum on your credit card, you are barely making it with no wiggle room whatsoever. I would like to see you pay the minimum payments on your credit card for now. Get your car sold. How are you selling the car? Have you tried craigslist.org? You need to sell that extra car ASAP. At that point, you will have more money to put towards credit cards. Your insurance will also go down presumably and you can use the extra money to pay your credit cards as well. You're barely making it but you're not in a completely upside down situation yet. Once you get your car sold, I think you'll be able to slowly but surely pay down the credit card debt. If you're able, I would try to open up a 0% or low interest balance transfer credit card and see if I can transfer all or part of the credit card balance onto this low or 0% interest credit card. That way, you are making less in payments because you're saving on interest. |
