Can someone give me some information?

Can someone give me some information? My daughter is facing foreclosure. She can either pay her credit card debt or her mortgage, not both. She is thinking that she will move home with mom (me) and let the house go into foreclosure and then she will work on paying off her credit card debt. Any advice on this? Does she need an attorney. The house will probably sell for less than orig paid because of the economy what will happen then, will they garnish wages. We don’t know where to turn on this. please help!

You may want to go to www.daveramsey.com for some advice. I am taking one of his classes and it has turned my budget and spending right around for the better. He advises to pay your mortgage FIRST no matter what. Then pay the things you need to survive – car, insurance, utilities, food. Send a monthly detailed budget to each cc company along with a small payment – that’s all you can pay – and do this faithfully. You can get better details on his website.

A home is a secured debt and a credit card is an unsecured debt. I would pay my mortgage and “charge off” the credit card. Then I would try to sell the home and if/when that happened I would pay off the credit cards. A charge off on a credit card might hurt your credit but it’s not as bad as a bankruptcy.

Never pay cc before Food, Shelter, Clothing and Transportation. CC may sue after about a year if there is no payment and the balance for each is greater than $5,000. The mortgage company WILL sell the property for whatever they can get and then come after your daughter with a vengeance on the balance!

Things are getting tighter and tougher with every pasting day. BUT we must be smart where every penny goes … When we have learned from experience it is only right that we share. That is how we become stronger as a people.

Also pay your mortgage, but don’t charge off your credit cards… It does hurt your credit as bad as a bankrupty don’t kid yourself! First try to call your Credit co. and move your debts to one cardif possible with the lowest rate… and keep doing that until you have all debt on one card… mean while write or cal them and explain your hard time so that it is in your file that you are communating with them , and even if you only have 5 bucks to send to each one, at least you are paying on your bill every month.

AND stop spending!!!! We paid off 10,000 this way and my credit is perfect ! Charge off’s make it hard for you to buy , rent or anything in the future for years and years and new cards or old ones will not be so easy to get at a lower rate. Most of our cards are at 1.9 3.9 and the highest 5.9%. If they offer the 1.9% for the life of the debt, take it !!! bounce your balances to get your interest rates under control is key. That extra interest is the extra payment to help you get a head. And start selling things you don’t need. American is cluttered and so are our homes!! Clean out, cash in and get the debt under control… You can not believe how good it feels!