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[quote=Anonymous][quote=Anonymous]I would sell the Camri.

It's only 2 years old! I understand that you may be underwater on it, but the payments are killing you.

Here's my timeline for you:

Step 1: pay the MINIMUM only on your debt.

Step 2: save up every dollar you can towards paying cash for a car.

Step 3: Work extra hours and put that towards cash for a car.

Step 4: look online, ask friends, keep an eye out for a cheap BEATER car. Yes reliable but it can be grungy, beat up, whatever. You just need it to get to work and back.

Step 5: also look out for a reliable mechanic who can help you keep a beater car limping along for a year or two.

Step 6: when you have saved up $6000 or so, sell the Camry and buy a beater car for cash. Take it to a mechanic first to be sure it doesn't have any expensive repairs.

Step 7: now take that $700 you were spending + $100 in insurance and use it to find your emergency repair account.

Then I would declare bankruptcy for your credit card debt.
[/quote]

Terrible advice. OP your plan makes a lot of sense, if you can lower your car payment and relocate the funds towards paying off your high interest credit cards that the fastest way to get out of debt.

You said you pay 20% on your credit cards? Are you sure? The min pay on credit cards is 1% of principal balance plus your rate of 20% divided by 12, so less than 3% combined, which is about $1600 for your balance of 55k. How come you actually pay $2000? Are you paying more than min?

Regardless, the next best thing for you to do is to lower the credit card interest rate.  You might not be able to negotiate it directly with the credit card company but you should reach out to one of the non profits that help people like you to negotiate. One of the PPs even gave you the name of the non profit.  Why are you ignoring this advice?[/quote]

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