Before Our Credit is ruined

Budget101 Discussion List Archives Budget101 Discussion List Before Our Credit is ruined

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      Have you called the credit card company’s yet? They aren’t all jerks 🙂 One of my companies took me from 22% all the way down to 3% just to help me out. When they finally started to raise it up they left it very reasonable. Others have gone down a few% when I asked.

      I think you should pay them at all cost and save your credit rating as much as you can. If you can. For one thing, even though your credit rating will take a hit, the credit card companies will still keep your accounts open and over time they will give you better interest rates again. This business of robbing us blind will stop one day in the not too distant future. I’ve been getting calls from lawyers asking me if I would like to be part of any big class action lawsuits because some of my companies put me up to around 30% just because of the amount of debt I have when I am NEVER late on anything. I haven’t heard yet about any law suits that particularly fit my criteria. But the winds are about to change even if it is slow.

      Suzi

      Quote:
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      Original Message
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      From: Melissa Calapp
      To: Budget101_@yahoogroups.com
      Sent: Monday, August 04, 2008 10:54 AM
      Subject: Budget101.com : Re: Before Our Credit is ruined

      Thank you everyone for your advice on this topic. Many of you do not seem to think giving up the house is a good option, but it is something that we have pretty much already decided to do, so that wasn’t exactly my question it was about other areas. The reason we are letting our house foreclose is becuase we bought three years ago near the height in our area and our area is plummeting. The house is worth about $130,000 less than what we owe now and the market is still going down. I doubt we could stay in that house long enough for it to even break even. Our payment is currently $1800, and is scheduled to go up to $2300 in nine months. We have already rented a larger home in a better area, closer to my husbands workfor $1100. We talked to our first lender and they said they would take the loss on a short-saleif we could find a buyer to take it, our second lein holder agreed to$5000, which is an $85,000 loss for them if we can find a buyer. We found four buyers, but because the first took so long getting back to us-three months-all of the buyers moved on. Wearestill looking for a buyer and hope to find one, as the house will cash flow at what we are asking, but it may not be possible and in that case we have decided to let it foreclose.We are in California, so thelender cannot come after us for a deficit, becuase the loan was backed up by the house and nothing else-it was not an equity line or anything, they are only allowed to go after the house. So my question was more along the lines as to what would you do if you knew you were going to loose all of those 0% credit card rates soon? I am also in school so getting student loans to replace the credit cards is an option, but they tend to run 8-12% and I’d rather not do that. We have one car that is financed and one not. I don’t think we will need a new car loan for about three to five years, so we should be okay there.

      Thanks,
      Melissa

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Budget101 Discussion List Archives Budget101 Discussion List Before Our Credit is ruined