OMG what a pickle.

In Britain less than this kind of debt load would cripple you.

Firstly I should cut up your credit card. As you have obviously used this to live beyond your means.

Secondly, You should seek some advice on your credit card account as to the actual figure owed without the interest. If you can negotiate with your credit card company a figure you may save legal costs otherwise…

Thirdly, you need to seek legal help so that you can come to a reasonable way to enable paying off the amount you owe without interest. In other words if you file for Bankruptcy and I’m no expert on this, than a court looks at what you can afford to pay and in some very special instances may rule that you only pay what you have spent and none of the interest accrued. ” I did say pay what you have spent and none of the interest accrued……”

The mortgage. If you file for bankruptcy you will have to sell up and it is best if you apply to sell it than let someone else do it for you. With the exceptions of whatever legal papers you have to have about your home. Documents and guarantees for works done etc…..

Or you could seek legal advice upon this also to find out again exactly what you owe without the interest. Than you need to negotiate a figure the lender is willing to settle for without any further charges being levied against you, it is also important that you do not sign any paperwork which enables the lender to chase up after the debt difference between the settlement figure and the Gross with accrued interest. This is about getting a settlement figure and closing the file on your debts.

It is not about how you can start off your debt cycle again.

It is possible get out of a sticky pickle but to do this properly you must be very wary of financial institutions and third parties. Read all the print buy a magnifying glass for the small print if need be.

Credit counsellors can work but financial institutions look to tying you up for more.

You need to reduce $53.000 credit card debt and your $559.800 mortgage debt to there net figures without interest.

Out of curiousity if you paid into any insurance schemes for your mortgage, have you checked out whether you are entitled to claim on it.

I may be wrong but if your financial condition is caused through a job loss and you have insurance on one or both, you may be able to cover your payments via a claim to the insurers.

Why pay into something if you are not entitled to claim against it? Check it out.