Problem paying off debts
Cincinnati Post, May 29th, 2007
DEAR BRUCE: I have a 30-year adjustable with a
24-month fixed rate. Then it will go according to the adjustable rate.
I have been in this home since November, and I have no equity yet. What
type of loan or line of equity can I get at this point? Please tell me
what can I do about my credit if I can't keep up. I need a loan to pay
at least $5,000 worth of debt off. - Sharon, via e-mail
DEAR SHARON:
Unfortunately, an absolute reality is one can't borrow oneself to
prosperity. You've gotten into a home, which very likely you couldn't
afford, and many have done so and been encouraged to do so by lenders
who extended more credit than was appropriate. On top of this issue,
apparently, you have other debts. The other stark reality very likely
is that you have no equity in this home, and you might have a great
deal of difficulty getting out with the whole skin. I wish I could be
more positive, Sharon, but the only thing I can suggest is that, if
it's impossible after you pared your budget down to an absolute
minimum, if you are physically able and have abilities that you
consider an extra job to help whittle away at your debt.
Unhappily,
there is little you can do to preserve your debt if you are unable to
make your payments. However, if you find that you are not able to make
your house payments, contact the lender immediately! Don't wait until
they contact you. That goes a long way in encouraging them to help
reduce your payments for a temporary period of time to help you get
your feet back on the ground.
Read more of this article. Learn more about Reverse Mortgages.