My husband and I have a debt to income ratio of about 70%. His credit report shows absolutely no late payments, ever, no negative reports at all, all green check marks, but just too much debt. We have 3 credit cards maxed out, and a car loan that we are 2.5/5 years into (Corolla).
I called a debt counselor and he tried to aggressively bully me into his debt settlement program. He was rude and gave off a car salesman vibe so I ended the conversation.
I want to try to call the credit card companies myself and settle something with them instead.
Is this the best option? What do I say to them? (Technically it'll be my husband calling because they're all his accounts.)
We only have enough money every month to make the minimum payment on our credit cards, and at this rate it is going to take us 25 years just to pay off one of them.
We've tried getting a debt consolidation loan from a credit union and other banks, but our debt to income ratio was too high and we were denied.
I am a stay at home parent because we can't afford the $1000-$1500 a month in daycare, and my husband makes about $80k/year. The reason all of our credit cards are maxed out is because in 2016 something very bad happened and in order to keep us from being homeless, and to take care of our two kids, we had to use all of our credit cards to keep us afloat for 4.5 months.
I know debt settlement or bankruptcy are our only options at this point. I want to try settlement first, though. Any tips?
Edited to add monthly bills: Rent 1250.
Electric 130.
Phone 130.
Renters insurance 30.
Car insurance 80.
Health insurance 373.
Netflix 17.
Car loan 370.
Credit card 1: 310.
Card card 2: 115.
Credit card 3: 250.
Internet: 70.
Hospital bill 1: 167 (will be paid off in May).
Student loan bill: 310.
I think that's everything. Not including gas, and food.
Submitted March 29, 2017 at 11:30AM by altinthevault http://ift.tt/2ohdHw2
