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How dose this happen???


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Hello All! This website is a wealth of info-I need some advice though-

Here is my situation.

We have a $380,000 countrywide mortgage and 2nd.

Our cc debit is-

Amex Gold- 7000

Amex Blue- 18,000

Amex Costco -9,800

BoA- 9,700


Chase- 2,700

Chase- 4,500



wow that is not happiness typing that in-:|

So with mortgage and cc our monthly payments are around 4,100 before gas, food electric ect. Everyone is current as of today, but we will not be able to pay the min next month. Since we "own" a home how dose that come in to play if you are delinquent on cc? Do they generally lien the house? We are thinking of selling in a year or so and are not sure what the consequences could be.. Can we pick and choose cc to keep current on-or is it all or nothing?Any advice would be great.

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Wow what a cloud of debt you have....

First of all, keep your mortgage current and second current.

Second quit using your cards...

I would let AMEX go if possible, they will offer you a big discount and a repayment plan to help rebuild....

also try calling the other creditors and see if you can get a hardship program..

Why are you unable to pay now?

Try to keep some cards current if you can...

Good Luck

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We have my mother living with us now which puts more expense on us- also we live in a resort town where nothing is cheap. We are about 700 behind a month- That's why i was wondering if you can pick and choose-will the cc settle with you if you are paying someone else. The delimma is do we pay $30,000 to some of the cards and settle with the rest of them or do we try and settle all of them for $40,000. We want to pay but we just don't have the funds anymore.

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Before any creditor settles with you they will take a look at your credit reports. If they see that you are staying current on other accounts while becoming delinquent with them, they are not going to be in the settling mood. But it never hurts to try. They tend to start talking settlement when it looks like all hope is lost for you financially.

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Most of the cc companies do not want to settle with you when you are current. If you stop paying, they will probably give you the default interest rate (about 30%) and hound you multiple times per day. When you get way behind, like four or five months, they will then start talking settlement or a hardship plan. By then, your credit will be trashed.

When I got in your situation, I defaulted on some but kept others current. The ones I kept current were the ones who offered me reasonable payments. But, be aware that even if you keep some of them current, those may still hit you with the default interest rate.

On BOA, after you get behind, you have to pay the default rate for six months. If you make ontime payments for six straight months, they will lower the interest rate.

On Chase, they will be the first to hit you with the default interest rate. And it never goes down. They will agree to a reasonable monthly payment, but I found that as soon as I made a payment at that amount, they raised the amount for the next payment. The logic is if you can afford $50 this month, you should be able to pay $100 next month because it is just a little more. And it just keeps going up.

On Citi, they will give you a hardship program, but that comes only after you are four to five months behind. They will tell you there is no hardship program but there is. Look for my posts here on the subject. You can get them down to 0% and up to five years to pay it back.

Having been in your situation, and still digging out, I would suggest you consider selling the house now and renting. Use the profits to pay your debt.

If they sue you and get a judgement, they can go after your house, your salary (at least some of it), your assets, savings, etc. In some states there are exemptions that keep them from taking certain assets. And, they have to get a judgement first. When they call they will tell you they will seize your house, your salary, your car, your kids, and throw you in jail. But you cannot be arrested for defaulting and they have to get a judgement to go after other assets.

Good luck. Keep reading.

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Well we can't afford to keep paying the cc and we can't sell the house yet- It's not finished and a reason we are so much in cc debit. I'm not sure what to do at this point. I've faced the fact that my credit will be ruined but I am not willing to lose the house. This will happen if we can’t pay the mortgage because I’m paying the cc... It’s a vicious circle to be in.

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Are you upside down on your mortgage? That means do you owe more than the house is worth? Have y'all tried to consolidate your credit cards? Maybe somekind of home equity loan.

It's not finished and a reason we are so much in cc debit. I'm not sure what to do at this point.

What is not finished yet?

Just my 2cents...I would make sure my mortgage is paid. I would take care of the important things like electric, heat, and food. At this point...if you are struggling...credit cards should get paid last.

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