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!

Has anyone tried using 2 checking accounts with any success?

Has anyone tried using 2 checking accounts with any success? I thought about using one for bills and the other for weekly expenses such as gas, stuff my daughter may need, my husband’s copenhagen, etc. I feel like this way we won’t have to be constantly worried about whether we have taken too much before the bills are due etc. Also it will help certain ones of us to realize that my paying the bills isn’t always what leaves us broke! I am hoping that things will change now that we have refinanced our house and dear hubby seams a little more interested in where the money goes.

Thanks for any input you may have!

Instead of two checking accounts, try using a cash envelope system for daily expenses. That way you are certain how much you have in each category and there’s no way to “over-draw” and bounce a check. I think www.daveramsey.com has an explanation if now try www.crown.org or just google “cash envelope budget system” or watch this video:

Hi all! I too am new here and trying to get our personal finances in order/better shape.

My question is – does anyone here use Mvelopes Personal? The files section is not the first place I’ve seen this mentioned and I’d read up about it a few months ago. What I am trying to find out is if anyone here uses it and if you’d know how big a difference it would make if our income and expenses vary greatly from month to month. My dh is self employed and some months are slim and some much better, the ups and downs make me nuts, which is why I am trying to find a way to make budgeting easier (because I obviously can’t get the hang of it on my own) and set goals and pay down debt! Thanks for any information.

I need to refinance an ARM. Currently have 4 active credit cards- all are at 80 percent or more. Just got one of those offers from citi financial – come get $6500.

Thinking about taking it to pay all CC to under 39% (which is the level I was told triggers the credit report number to go down)

That also will allow us to do some floor and roof repairs that are needed pre refi.

Has anyone done this? The credit charge is way to high but there is no prepay penalty and it would let us get things done to get a fixed rate morg at a better rate…. Thanks for any info/ suggestions.