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Subject:  In trouble! HELP! Date:  8/21/2001  12:39 PM
Author:  wildirishred Number:  87466 of 312161

Hello there board-

I need some advice, as I have amassed thousands in credit card debt/loans and I am not sure what I should do first.

Here's the financial picture:

CC #1 $6562 21.74%
CC #2 $5215 12.9%/19.9% (transferred balance/standard purchases)
HE loan $334/mo not sure deductable..1 year to go
Car loan $206/mo hubby just took this one out in May...long way to go

Savings Acct $6000
Credit Union Savings Acct $3700
Stocks/Mutual Funds $21000 (holding aol, nokia, walgreens, munder net net..don't net seemed like a good idea at the time)
Husbands Pension fund $ doesn't matter..not going to touch it

There's my financial picture in a nutshell. Other bills are normal monthly bills but we are constantly $250 short a month since the car loan was taken out. No, hubby didn't look at our bills before he bought the car.

My husband has a stable job in the construction business, well, as stable as construction can be. I am a stay at home mom with two kids, ages 8 and 5. I could go back to work but there's the expense of day care, travel expenses, extra income taxed, etc.

Additionally, I am constantly getting credit card transfer forms in the mail. I am looking into these to get a lower rate/no annual fee. We have good credit because we have paid our bills on time forever but it's getting to the point now that we just will not be able to very soon!

I guess my options are these. What do you think?:
Should I sell off the stocks to dump at least one of the CC bills?

Consolidate the CC bills with a lower rate and just pay the minimum plus whatever we can afford?

Bite the bullet and go back to work even though every dime I make will go towards bills and child care?

Drain the Credit Union Account and pay off part of one CC bill? This account is reserved for Christmas presents/days off (if dh takes a day off he doesn't get paid for it).

BRrrrr...declare bankruptcy. Last option. Like I said, we have great credit rating but just got a bit too indulgent. Or stupid. Whatever. We haven't gotten to the point of collection agencies bothering us. We pay our bills, don't know for how much longer we can do it though.

Withdraw every dime we have everywhere and buy lotto tickets. Ok, just kidding...

Any ideas?

My first inclination is to get better CC rates, which I can easily do. Or pay one off with the stocks or savings accts and get a lower rate on the other one.

Yes, the CC's are cut up. We are working out of a cash system, probably for the last month. It's working out but we know we need to get out of the debt too.

I am terrified that if we drain the savings account(s) my husband will get laid off and that's it...we are on the street.

I will NOT ask for money from relatives either. :)

Please help me...we need help and are not sure where to turn.

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