Sorry, long, but need advice.

**swaymonae** · 03-10-2009, 09:01 AM

Have you tried calling your credit card companies and working with them on getting a lower monthly payment and APR? Never talk to just a representative, tell them you need a supervisor, sometimes you need to go even higher. You just explain to them that you really want to avoid having to file bankruptcy/go to collections/stop paying etc. and ask if there's something that you can work out. A lot of banks will work with you if it means getting money or not. You just need to put in a little leg-work. And please, if someone tells you they don't "do that", don't hang up! Ask for THEIR boss. It usually takes a few boss' to get something accomplished.

Also, please read into debt counseling before you go ahead with it. A lot of financial advisors will say DO NOT DO IT. A lot of what they can do for you (or not do in some cases) you can do for yourself. Plus it's guaranteed to reflect on your credit. In many cases, if you make the calls yourself, you can get your APR & payments lowered and not hurt your credit.

DO NOT STOP PAYING, DO NOT WAIT FOR PEOPLE TO CONTACT YOU.

Notice how when you leave the ball in someone else's court, it just sits there?

You have a voice, use it.

**Alice in Chains** · 03-10-2009, 09:06 AM

I have read about them, and that's why we're looking into NFCC.org, somebody who is respected, not the fly by nighters. I do realize that a lot of the work they do, we could do, but to be honest, with both of us working, and 3 kids, (one is two years old) our time is valuable to say the least. If it's only $35 a month max for someone to take care of it for me, I'm okay with that.

I've gone the, "I need to talk to your boss" route, and with some, it's been no help. (Washington Mutual CC offer no help at all. )
Discover was good, they did help. Others, not so much.

I just don't feel right stopping paying everyone until someone offers help, (like our mortgage) but that's what it seems like people are doing, and advising us to do.

By the way, we've called WAMU multiple times about our mortgage. We've been told they won't look at us yet, they're too busy dealing with foreclosures. (I called a year ahead of time to be proactive)
I spoke with someone who works with WAMU closely, and was told they aren't doing much yet, only people in REAL trouble. (missed payments, etc.) Basically, if we want our loan extended or help, we need to be late?

**swaymonae** · 03-10-2009, 09:19 AM

You don't think your FICO is worth it?

**creditcardfree** · 03-10-2009, 09:21 AM

Honestly, I don't know. I would have a hard time not paying my mortgage when I know I could pay it. Here are my thoughts:

Food, lights, mortgage first.

Pay what you can on credit cards. Make a plan to pay them off. Focus on one at a time, pay minimum or none on the rest. Refinance anything you can.

Look for ways to bring in more income. Sell something online. Use this money to pay down other debts.

If you can get the other debts down and your income allows it you may be able to refinance the mortgage. It may be awhile...but that could be the long term goal.

Eventually, it may come down to needing to sell your home. You couldn't afford to buy it when you bought, so what has changed that makes you think you can afford it now? I'm just trying to be honest, but not rude by saying that.

We'd like to see more details on income, debt and interest rates, monthly payments, expenses ect. We might be able to help you trim some fat, if you haven't done that already.

**Alice in Chains** · 03-10-2009, 09:34 AM

Originally posted by creditcardfree View Post

Honestly, I don't know. I would have a hard time not paying my mortgage when I know I could pay it. Here are my thoughts:

Food, lights, mortgage first.

Pay what you can on credit cards. Make a plan to pay them off. Focus on one at a time, pay minimum or none on the rest. Refinance anything you can.

Look for ways to bring in more income. Sell something online. Use this money to pay down other debts.

If you can get the other debts down and your income allows it you may be able to refinance the mortgage. It may be awhile...but that could be the long term goal.

Eventually, it may come down to needing to sell your home. You couldn't afford to buy it when you bought, so what has changed that makes you think you can afford it now? I'm just trying to be honest, but not rude by saying that.

We'd like to see more details on income, debt and interest rates, monthly payments, expenses ect. We might be able to help you trim some fat, if you haven't done that already.

Don't find that rude at all, don't sweat it! Our house, we can afford the payments, but that's interest only, so not a long term solution. We thought we'd make money on it, (we did early) and the ride would keep going, or at least stay on the level we bought it for. We're probably upside down by about 70k or so, my guess. We couldn't sell now without taking a beating and starting over. We're trying to look at the next five years as a band aid, and to get out of debt and be in a better spot. Two kids are older, will be out of school by then, and my youngest, we can relocate at that time if we need to. For now, no interest in leaving.

We've trimmed some fat, ( no home phone, basic cable only, no NFL package!

etc.)

Combined, we make about 130k a year. (we were at closer to 150 before the paycut.) Mortgage about 3800 a month, that includes taxes.
We probably have about 70k in other debt. Credit card debts are all high interest at this point. Couple major cards over 10k, others are smaller.
Two car loans are managable, both under 15k. We live in CA, and our expenses are high, no doubt. Again, I realize we were reckless, but the failed business didn't help matters either.

My thought process changes daily, but right now, I wonder if we just don't pay the mortgage a couple months, then hit up WAMU for an extention on our loan and see what happens in 5 yeras. Sock that money away.
Get on a debt payment program for the credit cards. I know our credit will take a hit, but we don't need a home or cars for quite some time, so whatever. If I can save money on interest and fees down the line, maybe that's the course of action to take. I'm okay with having so so credit for 5 years if it means we're out of debt, or very close to it. I'm also okay with having no credit cards, they're a tool that we can't seem to use correctly, admittedly.

**jIM_Ohio** · 03-10-2009, 09:35 AM

Post a budget
post the payments for the mortgage and cc, post the balances, interest rate and terms. You don't give enough information to get good advice, IMO.

**Alice in Chains** · 03-10-2009, 09:37 AM

Originally posted by swaymonae View Post

You don't think your FICO is worth it?

I used to, but for the next few years? No. It seems only people with fantastic credit can use it. Ours was "good" and all we got were jacked up interest rates and credit lines decreased that hurt our credit scores. For now, I'm not sure my FICO means much.

**Alice in Chains** · 03-10-2009, 09:39 AM

Originally posted by jIM_Ohio View Post

Post a budget
post the payments for the mortgage and cc, post the balances, interest rate and terms. You don't give enough information to get good advice, IMO.

That would take a long time to get all that info down. I appreciate the help, I do, but can't do that at the moment.

I guess I was just looking to see if anyone had any thoughts as to stopping payment on the mortgage vs. the credit cards for now. We can't do both anymore, due to my pay cut, and the cc companies jacking up all of our interest rates.
I realize we need help, and are going to have to struggle for awhile.

**jIM_Ohio** · 03-10-2009, 09:40 AM

Originally posted by Alice in Chains View Post

That would take a long time to get all that info down. I appreciate the help, I do, but can't do that at the moment.

I guess I was just looking to see if anyone had any thoughts as to stopping payment on the mortgage vs. the credit cards for now. We can't do both anymore, due to my pay cut, and the cc companies jacking up all of our interest rates.
I realize we need help, and are going to have to struggle for awhile.

There is a 3rd hidden choice you are not considering.

Cut pieces out of the budget and continue making payments on both.

**creditcardfree** · 03-10-2009, 09:41 AM

Are you saving for college or retirement? Or have those been trimmed, too. I'd cut back on college before I'd cut back on retirement. It is an option when you are this tight.

I really think I would keep up with the mortgage and then look to start paying the other debt...how much do those other debt payments equal. Both cars a necessity? If not, you could sell those.

I guess I really have a problem ethically telling you to stop making mortgage payments just to qualify for a rearranged mortgage...but I can imagine how you feel overwhelmed.

**Alice in Chains** · 03-10-2009, 09:41 AM

BTW, I do side work from time to time, but that has dried up as well due to the economy. I took a part time job at night when my wife was pregnant with my son, and for about his first year after birth. It helped some, but I'm not doing that again, I'd have zero time with my family. If push came to shove, we'd tell everyone to get in line, and move out of state.

**Alice in Chains** · 03-10-2009, 09:42 AM

Originally posted by jIM_Ohio View Post

There is a 3rd hidden choice you are not considering.

Cut pieces out of the budget and continue making payments on both.

Agreed, and we've talked about that as well. I guess no matter how we attack it, our credit is going to suffer and we're going to deal with people wanting their money, there's just no way around that.

**Alice in Chains** · 03-10-2009, 09:45 AM

Originally posted by creditcardfree View Post

Are you saving for college or retirement? Or have those been trimmed, too. I'd cut back on college before I'd cut back on retirement. It is an option when you are this tight.

I really think I would keep up with the mortgage and then look to start paying the other debt...how much do those other debt payments equal. Both cars a necessity? If not, you could sell those.

I guess I really have a problem ethically telling you to stop making mortgage payments just to qualify for a rearranged mortgage...but I can imagine how you feel overwhelmed.

Retirement yes, college no. And it's been trimmed as well. (Of course, taken an absolute beating in the market like most.)

I hear you about the mortgage, we feel the same. But, when we've called to get help, or to see what they'll do, and told to just keep waiting, it's frustrating. Then you hear from people we NEED to be late to get help? It's really tough. We want to do right, and nobody wants to help us unless we're in deeper.

**noppenbd** · 03-10-2009, 09:55 AM

On the mortgage, the new mortgage relief plan may help you, depending on the home value vs mortgage. See this Q&A from the Chronicle:

Meltdown 101: Will Obama's housing plan help me?

Sorry, long, but need advice.