You first need to get on a very tight budget, write down a list of your expenses starting with your needs, the write down the things that are wants. Wants are: Cars with payments, cell phones, cable, beer, cigerrettes, eating out, dingdongs etc. Get rid of all these things with exception to maybe the 7500 car. Sell the 16,500 car and get a beater.

Sell everything else that does not sustain your heartbeat.

List your debts smallest to largest paying the minimums and put every extra penny towards the smallest and pay it off, then move to the next and so on.

I don't know your income, but by what you have said, if you make these cuts you will free up money you didn't know you had. Cut up your credit cards yesterday. If you need to feed the baby, ask for money from your neighbor or the church, before you use your credit card. This is how serious you need to treat this.

This will work and it will not be easy, but it will be tremedously rewarding when you have beat this. Work two full time jobs if you can. Good luck.

I been reading about the bankruptcy last night. Not sure about it still.

I read that in my situation I can try debt consolidation, debt settlement, bankruptcy.

If I just stop paying the credit cards and pay the smallest debt large amounts to knock it out first and let the others go would this be good to do. No matter what my credit score is going to be affected I know. After the small debt is cleared do the same with the next smallest and work up to the larger ones. I would be charged late fees and others would eventually go to collections.

In the debt snowball plan, you pay the minimums, then add the extra to the smallest, keeping you current on all the other bills. If you are not able to pay the minimums, you pay down the list from most important to least important, such as: House, food, utilities etc.

Pay your needs first, then pay any bills that are non bankruptable such as student loans and taxes.

Then go to consumer debt. As I stated above, you have to radically change your life to do this, but it is very doable. After paying al the needs, you can take ALL the extra and attack the smallest debt, then move to the next. This will get you behind on some of your credit cards and you will have to settle with them later.

The more important thing here is how you got where you are. You desparately have to fix your spending habits. Make a BUDGET, cut every non essential expense you have, stick to the budget. Prioritize your spending, your living lifestyle should be on no more than 90% of your income. You are living on far more than your income, hence the debt. STOP it, or you will be a slave to debt your whole life.

NEVER borrow for consumer debt such as: Cars, tv's, food, gas, furniture, dinners(You should not see the inside of a restaurant till you are debtfree)etc.

Read these books:

The Total Money Makeover by Dave Ramsey
The Millionaire Next Door

These books will get you on the right path, systematically and philosophically.

I have a way to assist you with your credit card debt. It is a two year process that can wipe it out for about .35 on the dollar. It involves some strategy. My sister had 85k in cc debt. We managed to get her debt free with payments of $496/month for 2 years. Now you are going to lose your all of your cards but one. The suggestion is to keep one card with a clear balance if needed for plane ticket, rental car, emergency etc. Initially your beacon score will go down. It will be back to where it was after the two years. You will also be debt free with all accounts marked as paid/settled. This is not a bankruptcy. It is a way out.

brlock22,

There is nothing a debt reduction company can do for you, that you can't do for yourself. Some of these companies are helpful at a cost and some are just ripoff artist. I would do this on your own. I hear of these companies all the time where you give them your money and you end up no better off down the road, but they got alot of your money.

Read Dave Ramsey's The Total Money Makeover, it will help you know what to do with your debt, then prosper once your debt free.

Well Wife and I met with bankruptcy lawyer this afternoon. We told him our debt and income info and we are elegible for Chapter 13 and not 7. We would pay back 34000 in 5 yrs @ 1170 plus still have to pay house, heloc and car payments. This only would be saving approx. 300/mo. I dont really think that its worth it to get the bankruptcy on our Report for that amount of savings. I have to figure out something else now

Can you suggest other options to me?

You probably would be hard pressed for a debt consolidation right now. With your current situation I would say that you need to make sure that you cut down on your expenses and only purchase what you need. With the baby on the way I would also start focusing on saving for education.

You should sell off anything you don't need. and begin slowly paying off your debt. Your debt makes it hard to save for the future. If you can stop eating out and spending on unnecessary expenses you should be able to pull out.

Best of Luck!

Go for the extremely tight budget and try to save as much as you can, sell off things with which you can live without. Manage things out, you will find the way. And ya make sure if you opt for bankruptcy than consider all the points for it as it will effect your credit report.

Congratulations on the baby.

I have been trying to post for about 6 days to answer your question. I keep getting kicked off in about 5 minutes from the time that I log on.

What I have said is basically the following:

Sell everything that you can
Evaluate the need for the transaction every time money leaves your hands ($20 haircut vs. $13)
Cut everything off that you don't need - cable tv, call waiting
Raise your insurance deductibles
Name brands at the grocery stores
Anyone owe you money?
Get the cars in the most fuel efficient shape - tire pressure, air filter.
Sell the most expensive car, signature loan for the balance that you owe.
Raise the thermostat in the house
No new clothes
No vacations for a bit
Raise due at work?
New job altogether?
Stop retirement savings

You get the idea. Develop a budget based on what you bring in. Get a second job.

Good luck.

I would cut back on all wants...you really should sit down an make yourself a budget to actually see how much money you need, and what kind of income you are bringing home. Thats the best place to start IMO.

got any equity in that house. before i would file for bankruptcy i would try everything i could. Try refinancing the house the cars. if no luck try debt counseling. they can lower those credit card payments.

Don't do equity in the house IMO, you can't use it as a tax write off, and God forbid you can't make payments, you can lose the house.

I would do what many of the other posters suggest:

1. Cut all expenses you can, magazines, cell phones, cable etc. You don't need them.
2. There are debt consolidation companies that DO NOT charge you a dime. They will consolidate everything for you, and get you lower minimum payments to help you get above the water.
3. If you can, either you or hubby get a second job now before the baby comes and put it towards your debt.

I did this years ago and it really helped. Credit Card counseling centers seem a dime a dozen now, so be careful. There are ones that are out there that will get the cc companies to take the interest off, and help you pay lower payments.