I dont agree with getting a roommate, esp when you have kids in a 2 bed. Sleeping 4 to a room is not a good idea (is it even legal?) just to bring in a roommate who might not pay or be safe around your kids.

How much do you owe? If its at all manageable to catch up, I would encourage you to do so. But if it's impacting your health (stress can be dangerous), I think BK should be on the table. It's not the end of the world and you aren't a bad person for doing so.

Contact your representatives in Congress. All congressional offices have staff that deal with constituency case work.

They will be able to give you information on 1) a nonprofit credit counseling service that will negotiate on your behalf to get a better interest rate and 2) programs that help underwater homeowners refinance to a lower interest rate, therefore reducing their monthly payments and freeing up some cash in their budget.

Your congressman (senator or represenative) will have staff that can point you in the right direction. They get these kinds of inquiries all the time. In fact, I know of some congressional offices who have had staff intercede on behalf of constituents in dealing with foreclosure issues.

If you are able to refinance and lower your monthly mortgage payment as well as reduce the interest rate on the credit card debt, this will make a huge difference in your monthly bills. It actually may enable you to resolve your debt issues (or at least get on a path) without having to declare bankruptcy.

If all else fails, then bankruptcy is always an option. But it may not be necessary. Seriously, call your representative.

Make that child care and "sense" instead of since...

Come on people, if OP is underwater on the mortgage, works full time, and can barely cover child are and aftercare on her salary, how the hell is twirling signs or waiting tables going to make a useful dent in the debt? Sounds like bankruptcy was designed for her situation. Oh, I'll babysit your kid for $40/ night and make an extra $200 per week BUT have to pay taxes on it...what's that going to help? When you are drowning in debt from the recession, working for 20 years to pay it off doesn't make since...you wouldn't make enough to cover the interest anyway. Get real.

Either you or your husband needs to get a 2nd, weekend job.

Its not ideal, but that is the best way to dig yourself out.

There is one job that you are well qualified for--babysitting. Advertise locally in your area, talk to other parents at weekend events, play areas, etc. Offer evening and weekend babysitting. Find out what the going rate is in your area and charge slightly less to get started and then once you have a reputation and a list of clients, you can increase your pricing. For example, if the going rate is $15/hr, then offer $12/hr. As a parent, you already have some evidence that you have some childcare experience.

There are also restaurants like Silver Diner, Denny's, IHOP, etc that need evening and weekend wait staff.

Anonymous wrote:With regard to your credit card debt, that is killer. You have a mortgage loan so you could get a home equity loan to pay off that cc debt. That's the main thing-getting rid of your cc debt. And see if you qualify to refinance even though you're under water. There are programs for that, check into it to see if you qualify.

http://www.bankrate.com/finance/refinance/refinance-options-when-you-re-underwater-1.aspx

It doesn't sound to me like you've done all your due diligence before considering bankruptcy. That should be your last option. It will impact your credit score and your spouse's for 6-7 years. That's a long time and will cause you to have to pay more to borrow money. Not a great long term option in my view if there's a way to avoid it.

OP, don't take advice from a poster who suggests you use a mortgage loan to pay off cc debt. Either the poster cannot read, or is so ignorant she does not realize you cannot take a HELOC or HEL on a house that is upsidown. One must have a LTV of a bare minimum of 75%, NOBODY will loan out money in excess of 80% total loan value in this climate.

Anonymous wrote:OP, you need to look at your situation realistically. Declare bankruptcy. Banks and the financial industry have no problems screwing over consumers because "it's just business!" Stop the madness, file bankruptcy, and start anew. Don't be emotional about it. It doesn't make mathmatical sense to keep trying to pay it off.

I was "advised" by Consumer Credit Counseling to file for bankruptcy in '03, and made the plunge. I didn't have many options, was working 3 jobs, and still couldn't pay the bills. I tried in vain to work with my creditors, but that had no interest in working out a payment plan. I was near suicidal, and when I walked out of the courtroom, I was able to live again.

Anonymous wrote:I had to walk away from debt about a year and a half ago. Thought about bankruptcy, but so far just stopped paying. My life is so much less stressful. I know it's a shitty thing to do, but I had no choice. I lost a job, the engine went out in my car that I still owed money on, had to move to be closer to mass transit etc. It was an extraordinarily stressful time, but things are getting better. Was able to get a place to live in exchange for childcare, working now (though not consistent hours) and for the first time I am able to save a little. I completely understand where you're coming from, and can't imagine how much worse it must be for a person with kids and a mortgage. Good luck op. You're definitely not alone.

Are you freakin' kidding me? You have a debt that 18 months old, and you are no longer paying it so that you "can save a little?" Why on earth aren't you using that "savings" to pay the damn obligation. I certainly don't fault you for not paying the debt when things were really rough, and I'm sorry for the tough circumstances, but by your own admission things are better now. How can you possibly justify not paying off the debt and saving the money instead?

Sell the boat.

I filed a chapter 7 BR about 8 years ago. Smartest thing I ever did. I trust you looked at all your options before coming to this decision, so I"ll spare you the "maybe you should sell your plasma? Maybe you should sell blow jobs??" suggestions.

And student loans are not dischargable in bankruptcy.

Definitely don't default on your student loans. While they can't repossess your education default on federal loans will likely preclude you from getting a security clearance. Apply for forbearance.

Can anyone recommend a reputable bankruptcy attorney?

PP here, and for the record, before I'm accused of being a deadbeat, I paid off $80K in student loans, we have no mortgage, paid off a small boat, and have one small car loan. So save your breath.