#credit card help
How to Make $40,000 Credit Card Debt Disappear
Dear Debt Adviser,
I was reading an article on debt and found your column. I need help. I have about $40,000 in credit card debt, and I’m one month behind on my mortgage. I’m probably a few months behind on some of my credit card debt and not sure what to do. Is bankruptcy an option? Should I sell my house and work on correcting my financial problems? Or should I just pay what I can? Thank you, Ronald.
I’m glad you found me. If you’re willing to work at this problem, I’m sure I can help. Let’s start with the good news — you’re back to work! A regular income is important when trying to take control of your finances. Now you just need to decide what to do.
Because you use the word probably to describe how far behind you are on your credit card accounts, it’s clear you don’t have a good handle on how much you owe, how late you are or how close you are to a foreclosure. To set you straight, I want you to begin your comeback by speaking with a counselor at a nonprofit credit counseling agency. You can find one through the National Foundation for Credit Counseling or the Association of Independent Consumer Credit Counseling Agencies.
Your counselor will make sure you don’t fall into foreclosure by mistake. Most mortgage payments have a 15-day grace period. However, once a payment is late, the next month’s payment is considered late if not received by the first of the month. So, by the time you think you’re two weeks late, you may actually be two months late and on the verge of a foreclosure action. Most creditors do want to help, but only on their terms and terms that their regulators approve. Your counselor can help you take advantage of any assistance programs that might help.
Once you have your options laid out from your housing and credit counseling, you will have some decisions to make. Some things to consider are: