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Author: FlavoFlavin Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 308881  
Subject: $50K in debt. Yikes! Help!??!! Date: 3/15/2002 11:46 PM
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Hi,

We (my wife, kiddies and I) have $50K in credit card debt. YIKES! So, obviously, we need to get our debt under control.

To that end, we are proud members of the TMF Money Advisor service and have taken the "Getting Out of Debt" seminar. So, needless to say, we now have a budget and (hopefully!) we'll be able to stick to it.

But here is our dilemma. Because we have so much credit card debt, we can only afford to pay the minimum payments. That means that this credit card debt won't be paid off for years!

And at the same time, we can't save any $$ because it's all going to pay off the minimum payments on these darned credit cards. Now, I understand that I'm supposed to pay myself first but $50K in credit card debt is a fairly substantial debt load to carry on a monthly basis. And I question the wisdom in trying to save anything with $50K of debt staring me in the face -- that seems like the first order of business!

Yes, we're using coupons now. Yes, we're cutting out everything we can. There just isn't any more $$! Oh, and yes, I'm trying to get a raise. I've also been calling these credit card cos. to get a lower interest rate but the fact that we've been paying our bills late over the past year isn't helping.

My question is this. Without putting my home in jeopardy (i.e. no home equity loans!) is there some way to roll this $50K into a loan with a much lower interest rate? If I could somehow reduce the 24% and 18% and 19% interest rates I'm paying down to 10% that would save me a whole lot of money over the coming years.

In other words, are there non-secured debt consolidation loans out there which are worth looking at? Other than applying for more credit cards at super low interest rates and rolling as much of this debt onto those cards, what else can I do? I'd like to get these interest rates down but I don't want to put my house at risk to do it.

Thanks for your help!

Sean
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