I recently got laid off from a second job. I used this to keep current on my unsecured debt(Over 50k) we had a rough couple of years with medical and household expenditures. Between my wife and I through our primary jobs we can keep current on our home loan and keep the household budget going along. I just won’t be able to make all the current payments on my debt. I guess my question is since the cards are unsecured should I concentrate on keeping my home loan current at the expense of my FICO scores?
No brainer. Keep paying on the secured debt and forget the rest…for now. Secured debt would include anything that the creditors can come and take back if you stop paying; your HOME, your CAR(s).
Now might be a good time to speak with an attorney for a free consultation. I got in the same situation and fought with it for several years before I finally had to file a chapter 13 bankruptcy.
Since then, we have had a much easier time getting by, and our credit was shot by then anyhow since I also couldn’t pay the credit cards regularly.
I’m not saying that’s the only way out, but the first consultation is free (you just have to swallow your pride) and they will let you know if you qualify for bankruptcy or if you would be better off trying some debt consolidation, etc.
Call and make an appointment and ask them what you need to bring with you. At least after the appointment, you’ll be able to put everything in perspective.
Thats a toughie but if you want to keep your home, make the mortgage payments. If anything has to suffer, let it be your debt unless of course you can sell your home and pay it all off and buy a new home.
Sorry to hear about your financial probs. Good Luck.
You need to pay the mortgage. You do not want ot be thrown out and you have to live somewhere. When you are faced with this you pay what you have to and let the rest go. There is no other choice. You need to live and electricity would be nice. If the phone, cable and internet and all the other non essentials have to go then you let them go. It will be at the expense of your scores regardless of what you do not pay. Not paying the bills hurts regardless of which ones they are.
I’ve heard multiple times that paying down the mortgage is the safest thing to do. unless you’re planning some big loan (which you wont get because no one is getting loans) i think is easier to repair a credit score than a broken household. I would highly recommend calling your creditors and telling them you cant make the payment. they will be willing to work with you and maybe arrange lower payments for a longer time. call them and find out. they’ll rather get something than nothing.
Pay your mortgage. At this point, your FICO is the least of your worries. If you miss a house payment your FICO will suffer anyways.
You might consider a debt consolidation service. Check carefully though, because some will show up like a bankruptcy on your credit reports. Check out daveramsey.com for good ones.
I hope things get better for you and your wife.