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Please help me :(


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Hello everyone I am new to this board and I can tell you now that I am glad I found it :) I need help really bad ! Right now I am with a company by the name of The Credit Network and I really dont see much a difference with the balances on all my credit cards (7) I am about 44,000 in debt and I want to pay this off . I am not working at the time but my husband is .Is there anyone here that can give me advice on what I should do . I have been looking into debt settlement companies . I have also tried to call each creditor and work something out but they want . I am trying to get things in order because its possible that my husband will be going to Iraq in 2 weeks and I dont know what to do :( Please if anyone has any advice on how I should handle this please I am open to hear everyones advice . Thank you for having such a wonderful site with so much information and I am glad to know that I am not alone in issues like this . Again thank each of you in advanced :)

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Hi Lost:

Don't use the debt consildation companies!!! They only pay the minimum to creditors and pay themselves with whatever service fees they negotiate or set from your proceeds. Doesn't help much with revolving credit because the compounding interest alone will always keep you in the hole.

I don't know your present situation, but if you own a home that has some equity in it, I would advise a Home Equity Line of Credit and pay off then stash the cards. HELOCs have a life of 15 years and work like a checking account. The most interest you'll pay with a HELOC and 630-660 credit score (most of US pop.) is probably around 13-15% if rates spike 4-5%. Simple illustration:

PRIME INTEREST RATE (for all interest loans) 4.25%

Your qualified interest rate 9.75%

Your MARGIN [Qual Int (9.75%) - PRIME (4.25%)]= 5.25%

MARGIN IS LOCKED. MARGIN is max range your int rate can rise.

That means your interest will never surpass 15.00% regarless if PRIME goes higher.

If prime is 5% and you borrow $25,000 against a hypothetical $45,000 HELOC. Your payment is about $280.00 month. With HELOC you only pay interest on what you use not on the the entire $45,000 unless you use all of it and keep it at max. The payment decreases as the balance decreases.

I dunno, this is probably no use to you, but thought it might be a better solution for you instead of using Debt Consol. Service.

If this isn't an option, then I would recommend that you handle your own bills. The trick is to send in $15-$20 more than the minimum payment to revolving credit to pay down your prin. balance. The extra quashes the interest charge. Just look on your statement for the Finance Charge and calculate to send in that much more than the minimum payment on the pay coupon.

Don't bother with the debt consolidation services. It's a waste. You can handle it yourself. I think the Armed Services has resources available for helping out with this. Have your hubby check on that for you.

Good Luck!

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