Your Questions About How Do I Get Out Of Debt With Bad Credit

Betty asks…

How can you get into a home without any money down, bad credit and substancial debt?

I have been in and out of the hospital and am unable to work , my husband makes over $55,000 a year but we are a family of 5 crammed into a 2 bedroom apt. He has student loans and bad credit from divorce. He had a home from his previous marriage, but I have never been a home owner. The question is how can we get out of this hole we are in and start moving on with our life? Iwant to try to be in a home b4 my 3 yr old son starts school.. because the schools where I currently live are unsatisfactory. we currently pay $650 a month in rent .. which is more than most of my friends house payments so I am wondering how do I get started trying to improve our situation and get into a home .. with $1,000 in debt each month and no way to possibly save for a down payment of any kind. We have paid our rent every month, that is one thing we do make sure gets paid . have been in and out of the hospital and am unable to work , though we have not asked or have been receiving any assistance what so ever. My conditions include spinal bone growths, organ failure and chronic pain , which makes it difficult to just care for my son and my 2 step sons (which are all under the age of 12), Since my doctors have told me I am physically unable to work right now options for going back to work are not really there. My husband works 12 hour days at his job, that he has held for over 7 years. We have 1 car( that is paid off). Our rent of $650 a month that we do pay does not include our utlities or anything else. Our phone bills, electric, cable, water all get paid as well and we have a good payment history with them as well. Our credit debt includes :my husbands government student loans, credit cards from his previous marriage, and one month of car insurance not paid by me after I went into the hospital.
we are looking for a home in the $50-$100k price range .. so that we can make our payments.

richmama answers:

Try going to a new home builder. Like getting a new car, a new home will probably be easier to get into than a used home. My wife are only 24 years old and also have bad credit (560 for me 580 for her) and debt ($3k owed to an apt. Complex for broken lease among other things). Combined we only make about $40-45k a year which is less than your husband. The home builder that we were with couldn’t get us financed in house with them but because they wanted our business our loan officer referred us to another company that got us approved. This company was actually able to use my wife’s credit with my income level but this might have worked well for use because we work in the same company. To be honest with you your financial situation seems to balance out with ours because we have not kids but we do pay for a $450/mo. Car note and our mortgage is $950/mo. As opposed to the $650 you say that your friends are paying for mortgage. The only thing you must be aware of is property taxes. Property taxes range in different areas but they may be anywhere from $2,000-$6,000 or more per year depending on where you live. Your lien holder can include this into your note as a monthly payment and many times will depending on your type of loan (conventional, fha, 80/20, etc.). Our taxes for our area are about $4,500 a year which puts us at about an additional $400/mo. Bringing our total monthly payment to around $1350.

If you think that getting a used house might be cheaper, do your research. We were able to buy our house for $130k which is about the price that the used homes were selling for. It only made sense to get a brand new house that cost as much as a used house. The figures however will still run the same with the same taxes and same interest rate only you might have a tougher time getting a loan because there is no one pushing to get your business except for the loan officer and/or real estate agent who can only do so much for you. New home builders have many contacts that make buying a house a possibility for anyone.

David asks…

how can you get into a home without any money down, bad credit and substancial debt?

I have been in and out of the hospital and am unable to work , my husband makes over $55,000 a year but we are a family of 5 crammed into a 2 bedroom apt. He has student loans and bad credit from divorce. He had a home from his previous marriage, but I have never been a home owner. The question is how can we get out of this hole we are in and start moving on with our life? Iwant to try to be in a home b4 my 3 yr old son starts school.. because the schools where I currently live are unsatisfactory. we currently pay $650 a month in rent .. which is more than most of my friends house payments so I am wondering how do I get started trying to improve our situation and get into a home .. with $1,000 in debt each month and no way to possibly save for a down payment of any kind.
We have paid our rent every month, that is one thing we do make sure gets paid .
As I stated before.. I have been in and out of the hospital and am unable to work , though we have not asked or have been receiving any assistance what so ever. My conditions include spinal bone growths, organ failure and chronic pain , which makes it difficult to just care for my son and my 2 step sons (which are all under the age of 12), Since my doctors have told me I am physically unable to work right now options for going back to work are not really there. My husband works 12 hour days at his job, that he has held for over 7 years. We have 1 car( that is paid off). Our rent of $650 a month that we do pay does not include our utlities or anything else. Our phone bills, electric, cable, water all get paid as well and we have a good payment history with them as well. Our credit debt includes :my husbands government student loans, credit cards from his previous marriage, and one month of car insurance not paid by me after I went into the hospital.
Also I would like to add that my husband makes too much $ to get assistance .. but not enough $ to pay off all debts at this time. He works 12 hours a day at his job , then coach’s his sons sporting teams in the eveings.. so him getting a second job right now is not only prevented by his employer, but would not work with the amount of time that he has.

richmama answers:

You should check your local classified adds & online adds to find sellers that will finance. That way the person selling the home will be your “loan company”. Why would they sell you their house/and finance it if you have no money down and bad credit?? Because your monthly mortgage payments will be hundreds more than they could rent it for,and because they can easily forclose on you if you dont make the payments–Which some of them count on so be carefull.

Jenny asks…

Getting out of Bad Credit. Getting a loan to pay off my debt and just focus on that one laon? Is it possible?

So I think I‘m not quite in debt like some people I‘ve heard talk about themselves being $10,000 or more in debt. I‘m approximately $3,400 in debt to 2 credit cards, 1 apartment for damages after we moved out, 1 for Directv, 1 for my cell phone, and I owe my local preist about $350. At t he time I was going through such a financial mayhem and I wasn’t able to pay any of my bills. I was doing fine with everything until I quit school, the money stop coming and my job wasn’t enough. Does anyone know how to get out of debt. I have a job now but I‘m so busy paying for my current bills, my 2 stepson’s tuition, my college tuition, & my daughter’s needs. I‘m no one to complain of my husband because he’s a full time student and full time father to the children while I‘m the financial supporter and part time student. I think my husband getting a job would help but then again I strongly support his education. I heard that debt consolidation is only going to worsen things and I‘m avoiding that. ??

richmama answers:

Stop using your credit cards.

Put 25$ -50$per check into a separate account to build savings. Do this before paying your bills.

Start cutting costs, like: Cable, housephone, eating out alot. And things of that nature.

If you are not in default with these companies, dont start. Send them whatever you can and do it on time.

Set up a payment plan for your priest, he should understand a small monthly payment.

I know yu support you DH but your husband MUST get a job, you simply must get more income coming in.

Sometimes like makes you replan and focus. Can you find a cheaper apartment. Can you stepsons pay their own tuition or take out loan for that.

I wish you all the best

Laura asks…

Too much debt and bad credit?

I have $8000 in credit card debt and I have fallen behind on my payments on a few cards past 30 days and 1 card past 90 days. All are up to date besides the past 90 day late because the company is unwilling to work out a payment plan or anything with me.

How badly do you think this has affected my credit? Will I be able to rent an apartment? Also, best way to get out of this situation and be current??
Your funny Ted. I lost my job and the card was used for an emergency!!! I tried to work with the company form day 1 to reduce payments and they were uncooperative to say the least. Please don;t bark your opinion at me if you cannot help!

richmama answers:

Yes, you will be able to rent an apartment. Many complexes are 50% empty. They need you. It will be important that you explain your situation to them like you did in your question.
Paying off the cards will take time but you can do it. Just keep going. There is no magic answer..

Powered by Yahoo! Answers

Be Sociable, Share!

Speak Your Mind

*