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Re: Whats the prime reason for your financial catasrophe?

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Posted by Buck ( on April 27, 2004 at 21:30:21:

In Reply to: Whats the prime reason for your financial catasrophe? posted by Old lurker on April 27, 2004 at 00:04:44:

Here's a good story for ya. About 3 years ago my wife and I lived in a $90,000 house with $170,000 in mortgages against it. We had about $40,000 in CC debt, 2 new car payments ($1,000/month) and made about $65,000/year. Yeah, so I saw there was no possible way to get ahead in our credit cards making minumum payments (barely) and the house was WAY over-mortgaged. At the time I had 700 FICO. I also had about $30,000 left available on across about 15 gold and platinum cards. I figured "lets go for broke". I got approved for a NO-DOC mortgage for a new house and 30 days prior to closing rounded up about $25,000 from cash advances on my new $250,000 house that I live in today. From the day we moved in we stopped paying ALL credit cards and focused on our house payment only. Of course our credit is trashed now (sub 500's) but we have our dream house and have always said we are getting away from car payments. So now we are "forced" to do so as no one will lend to us anyway :) The ironic part to this story is that we now make $120,000/year combined and could easily afford to pay our old debts in a reasonable time. But now whats the point? I will settle with them as they sue us.

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