Sorry, long, but need advice.

[LivingAlmostLarge]

I think it's manageble if you sold both cars and got beaters. What are you driving and what is the likelyhood of selling one car? If you sold it and bought say a cheap $2k beater to last 1 year, could you dump that $10k onto the cards?

I think it's still manageable maybe. Sounds like you are paying off $2k in credit card debt a month. So I wouldn't worry about the house or the cards.

Your number is around $10k month take home I assume? Because you gross $130 but with 3 kids and a mortgage? You're paying almost nothing in federal taxes right?

[creditcardfree]

I think it's manageble if you sold both cars and got beaters. What are you driving and what is the likelyhood of selling one car? If you sold it and bought say a cheap $2k beater to last 1 year, could you dump that $10k onto the cards?

That is a good idea.

[swaymonae]

Alice >

Where do you grocery shop btw?
Do you have cellular phones?
Cable television?

[Alice in Chains]

I think it's manageble if you sold both cars and got beaters. What are you driving and what is the likelyhood of selling one car? If you sold it and bought say a cheap $2k beater to last 1 year, could you dump that $10k onto the cards?

I think it's still manageable maybe. Sounds like you are paying off $2k in credit card debt a month. So I wouldn't worry about the house or the cards.

Your number is around $10k month take home I assume? Because you gross $130 but with 3 kids and a mortgage? You're paying almost nothing in federal taxes right?

Correct. We get back a couple grand a year, if that. I don't want the government having any of my money during the year. I mean, I know I've been irresponsible, but THEM?

We couldn't sell in today's market, we'd owe. It would have to be a short sale. A house behind us stayed on the market for almost a year. As someone else said, we could rent and save a grand, maybe close to two? But, we don't want to leave, not yet.

[Alice in Chains]

Alice >

Where do you grocery shop btw?
Do you have cellular phones?
Cable television?

Primarily, Albertsons. My wife does the shopping. We've started to coupon clip, and to buy generic on some items.
Yes, have cell phones, but company pays.
Cable, yes, but have cut to basic.

We've started to trim some of the fat, but I realize there's more to be done.

[Alice in Chains]

The bottom line is you make 130k combined and have a 570k interest only mortgage and a ton of other debt.
YOU CAN’T AFFORD IT!!!

What is going to happen IF they let you refi into a 30 year fixed… your mortgage (incl taxes/ins) payment will go up from 3500 to about 4100. They might not let you with crappy credit, negative equity and a high debt to income ratio.

Say you could rent for 2000 a month… you’d save 2100 in payment there and have less in utilities. That’s over 2000 to plow into the debt. The cc’s and cars would be gone in less than 3 years.
Then you start saving for a down payment and get a house you can afford putting 20% down and getting a standard FIXED mortgage.

Of course you don’t want to sell the house, but guess what… you cant afford it.

Stop waiting for a government handout, man up and handle the problem you created yourself.

I'm not waiting for a handout, thanks for paying attention to my posts.
I could not rent in OC for 2k a month.
As for the refi, Chase has stated they'll work with us, credit doesn't matter. It would be a loan mod to keep us in the house. They don't want us to leave, that's for sure.

[LivingAlmostLarge]

No I suggested selling the cars. What kind of cars do you drive, what are then loans (principal, interest), and value? That could help if you sold even one car and picked up a $2k beater for couple of years.

That might free up $10k to dump on the CC and get you back in the black and able to keep the house without working a second job.

So I'm not suggesting a home short sale, but possible a car dump.

[swaymonae]

Primarily, Albertsons. My wife does the shopping. We've started to coupon clip, and to buy generic on some items.

I know you've probably heard this before, but you should definitely start shopping at Target, Walmart & Trader Joes.. I haven't shopped at a Safeway or Albertsons in over a year now.. sometimes I have to go to a couple of them to get everything I need.. but compare prices at Albertsons and one of these three places.. they're always cheaper, and can be up to 50% less.. It's a huge difference..

[Alice in Chains]

No I suggested selling the cars. What kind of cars do you drive, what are then loans (principal, interest), and value? That could help if you sold even one car and picked up a $2k beater for couple of years.

That might free up $10k to dump on the CC and get you back in the black and able to keep the house without working a second job.

So I'm not suggesting a home short sale, but possible a car dump.

I drive an F150 that I owe about 12k on. It's probably worth about that. It's in great shape, and I do drive often for work, and entertain clients from time to time, so a beater isn't going to work.
My wife drives a Scion, owes about 8k on it, maybe more like 7k. We both know we're driving them into the ground, and when they're paid off, that money goes towards debt.

[Alice in Chains]

I know you've probably heard this before, but you should definitely start shopping at Target, Walmart & Trader Joes.. I haven't shopped at a Safeway or Albertsons in over a year now.. sometimes I have to go to a couple of them to get everything I need.. but compare prices at Albertsons and one of these three places.. they're always cheaper, and can be up to 50% less.. It's a huge difference..

She does shop Target, (they just opened one less than a mile from us) for everything but food.

[swaymonae]

^Oh, it doesn't have food? The one's around here do.. Well try Walmart or Trader Joes if you can find on close to you.. I know it's not one of the bigger factors.. but every little bit helps.

[Alice in Chains]

^Oh, it doesn't have food? The one's around here do.. Well try Walmart or Trader Joes if you can find on close to you.. I know it's not one of the bigger factors.. but every little bit helps.

The "superstores" haven't come here just yet. We should probably try Trader Joe's though, for whatever we can get there.

Thanks for the suggestions, you're right, it all helps.

[creditcardfree]

Are your insurance deductibles low? You could up them for awhile to save some cash on premiums. Ours our at $1K on our vehicles. We do have the money in an emergency fund if it was needed.

[Alice in Chains]

Are your insurance deductibles low? You could up them for awhile to save some cash on premiums. Ours our at $1K on our vehicles. We do have the money in an emergency fund if it was needed.

Good idea. I believe ours are 500.

[creditcardfree]

Do you know about the snowball method for paying off debt? It seems you need to work this from both ends. Keep making mortgage payments, try to work a deal on the loan, pay off debts as you can, even if you can't pay the minimums. And keep a look out for extra income. I just sold 8 pieces of children's clothing on ebay and netted $50...it ALL adds up.

I'm rooting for you!