i am about 60.000 dollars in debt,but no one will give us a loan as we owe too much,the bils are coming in faster than we can pay them,i am out of work due to illness,so our income has dropped,but my husband earns too much to file bankruptcy,how can we get out of debt,if nobody will give us a loan.Please if anyone can help
I’m going to move this thread to MPSIMS, where posters will likely give you advice on how to get out of debt. But, I warn you, if you make one post that gives the impression you are begging for money, you will be banned as a spammer.
Moved from ATMB to MPSIMS.
From someone who has been there, done that, and doesn’t want the T-shirt… perhaps this will help. I don’t know where you are; I’m in Ontario, Canada.
- Have you been to see a credit counselor?
Six years ago, I was in over my head, and going down fast. I went to see a credit counselor.
In Ontario some of these credit counselors work for a charitable organization funded by the regional government. I have heard that there are profit-based ones in the States, and you have to be more careful.
The counselor helped me to plan and budget things, but after a few months, it wasn’t enough.
I went to a trustee, who took over my financial affairs and took away my credit cards. On his advice, I entered a Consumer Proposal, which is one step short of bankruptcy. I declared all my debts, and the trustee put together a legal plan for partial repayment, and sent it to all my creditors. Under Ontario’s Consumer Proposal law, if a creditor does not dispute the proposed repayment plan within 45 days, they must accept it.
No-one disputed, and I started making repayments. The trustee kept any creditor calls off my back. One collection agency kept sending me letters and calling; I simply forwarded the letters to the trustee and told the callers that under the proposal which the creditor had accepted, they were not allowed to call me. If there was a problem, take it up with the trustee.
- You cannot file bankruptcy?
Maybe this is different where you live, but I am not aware of any situations where a person trapped in debt cannot declare bankruptcy.
- Need for cash.
You may need to reduce non-debt expenses. You may have to start selling assets. I have no idea of your situation, but generally this means that things like cable TV, cellphones, eating out, extra features on the phone line, etc, all have to be reviewed. Can you move to a cheaper locale? Get rid of a car? These are the unpleasant decisions you may need to look at.
The credit counselor will look at all this with you.
Perhaps you might consider a non-traditional method of borrowing, such as the P2P method offered at Prosper (www.prosper.com).
Whatever you do, step 1 is to get (in writing) what your unavoidable monthly expenses are. #2 is to determine optional expenses. Then you can start working to reduce expenses - usually with the optional ones, but sometimes the unavoidable ones can also be reduced.
Note that your plan to get a loan won’t exactly get you out of debt, will it? You’ll still be in debt to whoever loaned you the money.
Going further into debt to pay off your bills will only help get you a lower interest rate on your debt, it won’t reduce your debt.
This gave my brain a whiplash. I don’t want to sound preachy here, but you can’t get out of debt by borrowing more money.
You need to approach each of your creditors and see if they will work with you by accepting reduced payments or some other plan. Most of the time they are willing to work with you, because they would rather get something from you than have you declare bankruptcy and get nothing.
Then you and your husband need to sit down and examine your spending habits realistically. What are you spending money on that you can live without? Are you eating out several times a week? Do you buy new clothes when you don’t really need them?
Many people think that they couldn’t survive without their big-screen TV or their fancy stereo system, or their BMW. I don’t know anything about your personal circumstances, so please don’t take this personally, but just about all of us have some “luxury” items we could do without. Sell them and buy something less expensive.
I’ve been in a similar situation, and it took me several years to get out of it, but it can be done. But you need to have a lot of discipline and self control, and you need to make a workable plan and stick with it.
Good luck.
Well, yeah, it will reduce your debt, in the form of smaller finance charges/interest payments. If one can consolidate one’s debts at a lower rate of interest then generally speaking that’s a good thing (assuming that one doesn’t then turn around and run up the credit cards again).
I was unaware that one could make too much money to file for bankruptcy, though. Anyone got a cite on that?
Someone willing to lend would actually trust this site, and the people taking on the loans?
I don’t believe it for a second. I used to work collections for a credit union, and I went to many a bankruptcy hearing for folks who made what I considered an enviable income. All you have to do is have greater debt than net worth and not have the ability to repay it on demand. If you can negotiate to make payments with the lendors, you don’t have a case for Chapter 7, although you could file Chapter 11.
The bankruptcy laws have changed recently. Here is one article about how credit counceling is required. It may indeed be more difficult to file now.
I’ve only just discovered it, but it looks like that bankrate.com site has some good information on debt management, and it’s probably a good place for the OP to look for advice.
It sounds daunting, but I’ve heard accounts of people getting out of even larger amounts of debt. It’s hard work, but it can be done. If it’s any consolation, the habits that you learn in order to pay back the debt are the same habits that will help you save money after it’s paid off. Good luck.
Aha, here we go.
Well, glad to have had my ignorance on that matter fought. Thanks, Dag Otto.
There’s a difference between “I make too much money to file bankruptcy” and “I make too much money to file one chapter of bankruptcy, therefore I have to file under a different chapter.” The OP is asserting that her husband “earns too much to file bankruptcy,” which is on its face untrue. Since the OP has not returned, I’m leaning toward this thread’s being spam.
Maybe, but the recent change in law is a bit bewildering. Give them a day or two to respond.
Even if they don’t respond, this has been a very useful thread.
This probably won’t help the OP since she was probably spam, but I found The Credit Boards through a post on SDMB. The site has a ton of extrememly helpful info about bankruptcy, what to do about creditors, how to buy a house, and how to increase your credit rating. There’s a awful lot of info so it can be kinda overwhelming but keep reading and you’ll learn an awful lot about the credit industry.
I agree with this. Do NOT borrow more money. It’s feeding the already out of control fire. The above information sounds like a good way to get the current bills under control. Now…you need to learn how to alter your lifestyle.
Cut back on everything. Figure out where you’d be in a year if you did (this), (this), and (this). Get creative on your entertainment budget. For example, rather than going out for dinner and a movie, you and the husband could rent a movie and do a picnic on the living room floor. Go to free outdoor concerts, garden exhibits, take in the local sculpture, etc.
Carpool whenever possible. Consolidate your trips. Figure out a modest budget to get through the week and STICK TO IT. Stop buying CDs. You can borrow from friends or listen to the radio. Sign up for Freecycle, which is a “free stuff” website.
Sometimes you have to swallow your pride and go to someone who handles their money well and ask them how they do it. Ask for help in setting up a budget
Getting out of debt takes self-control and determination to regain your FREEDOM. You can do it. I did. Lots of people around here have. Best of luck to you!