My wife and I have around 26,000 in credit card debt.?

We tried to help open a business, and well it failed. Long story short, we owe like 26k on about 10 -14 different cards. We already sold all the equipment from the failed business. So after all is said and done, we are at 26k left. the combined min payments are around 960 a month. Both of our credit scores took a major hit because of all this and we dont really have an equity line option. Since my credit is damaged worse than her's, I was thinking of taking my 9k in available balances and paying down that much that is in her name. that would get her to around 7k. then I was thinking of going through the credit counseling on myself. Do you think this is a good option? i am just aggrivated about how things went from so good to so bad so quickly. the stress is getting to me.

Richard,
we didnt just go out and pick up 10-14 credit cards. we both had about 3 each, and took out the rest in order to start a business. Our business loan didnt cover everything needed. After about 7 months, we had to close up shop. We were able to sell all the equipment in order to pay off the exisiting loan. We also were able to pay the credit cards down from 42k to 26k. 26k is the remaining chunk of change leftover from our attempt. We were both owed nothing on credit cards before.

Your plan doesn't sound like it will solve the problem. If I were in this situation here's what I would do. I'd look at all the cards, their credit limit, what is owed, the minimum payment, and the interest rate.
Then, I'd say, in this case, I'd start with the one I owe the least on and make the biggest payments there, paying minimum everywhere else until it's paid off. (A lot of people make the mistake of trying to pay more than the minimum on every card and then they never end up really getting anywhere, but if you pay that much more than the minimum on just one card, you'll get that one paid off and you'll have one less balance to worry about) Once it's paid off, go to the next lowest balance and do the same thing. When you're down to 3 or 4 cards left, at that point I'd probably focus on the one with the highest interest rate.
That being said, if your highest balance is also your highest interest rate, start with that one.
if there is any reasonable way for you to consolidate your balances down to as few cards as possible, look into it- like a reasonable balance transfer offer from one of your other cards. I just think it's easier dealing with fewer cards and you might be better able to keep your head above water while you catch up.

we're thinking of refinancing our house to consolidate debt right now. i know the feeling and the stress. be careful of the credit counseling. we've been screwed in the past and i'll never do that again. i would find a way to consolidate. 10-14 credit cards is excessive. i hate credit cards. the interest is ridiculous....

I do sympathise with you and your wife over your current financial predicament. However, I really don't know why you both obtained 10-14 credit cards. It is a poor financial decision. If I knew ahead of time, I would have advised you both to pay off some of the cards (those ones that are new) and possibly to close those accounts. Or, better still, not charge more than 12% of your credit limit each month, thus, making it easier to pay off each month.

Since we can't change the past, I would agree with you to take 9k from your available balances to pay down your wife's debt, although this would plung you into more debt.

My advice to you now is this: Please talk to a qualified debt counsellor. I would recommend Lexicon. You will find their telephone number on the web. Tell them the truth. They have helped several people and I am sure they would be willing to help you too, although it is not free, it is not expensive either.

In conclusion, while wishing you and your wife the very best in your endeavours, please do not borrow any more money until your current debts are paid in full or settled.

RICHARD

Great job of paying those down. Each CC company has a settlement department. They are willing to lower your int. rate if you close your account or accounts and stick to a fair payment plan. If you have a lump sum of money some will accept what they consider a good amount.

Do some research on the real estate market. A friend of mine bought a foreclosed home. She put $5k down and rented it out for two years. After that she sold it and gained a profit of $63k. I wish you luck

think positive and don't let this problem get even worse as it is already is. you need a clear mind to get thru all this. first you have to work then you have to pay the debt. if your mind is not in good condition you will be having trouble to get the money to pay the debt.

so i suggest you don't use the available balance to ease off the debt. you need that to pay monthly payment for the months to come so you can focus on your work. what you should do is find new credit card with 0% INTRO APR for period 6 - 12 months. you got a lot of balance there so 1 card is not enough to put all that balance. so try find at least 5 new card. usually there is balance transfer fee. in latest survey it is around 3% so for 26000 = 780. check also if there is any setup fee before agree to accept one. check what could break the 0% INTRO APR. once you break the term the 0% INTRO is off and you are charge with the REGULAR APR.

so be careful. you should have learned your lesson. during this INTRO period you are not accumulating any new interest so pay on time the monthly min due only. for new purchase it is usually cover by REGULAR APR. when the INTRO period near the end transfer again to new card with similar package.

so that is how you do it. remember read all the terms carefully. please don't stress up your body continuously cause it will lead to bad endings. at least jogging 3 days every week. if you don't have the time at least jogging in place maybe while watching TV or when you are free at home. good luck. hanging there. you can do it. just believe yourself and to believe on yourself you need a clear mind. hope that helps a bit.

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