We have ourselves in a mess with our mortgage

(This is besides the $40K debt we are trying to get out of a little at a time). Our first mistake was to get a home equity loan, which despite our best intentions, we maxed out paying off other debts and medical bills. Then to correct that we made it worse by refinancing with an ARM. We intended to be out of the house by now, but we have to pay down the principal at least $8K to break even when we sell it.

Our rate is going to keep going up starting in August and we just won’t be able to afford the payment. Is there anything we can do? My husband is going to try to call in to Dave Ramsey today, but I thought I’d check with you all, too. You are always so helpful. We don’t know if we should pay every extra penny on our house or on the other debts we have. We have never been late on any payments, we always make them but just barely sometimes.

My best advise would be to have your wife call her credit card companies and you call yours and threaten to surf the balances over to another card company that has offered you much lower interest rates. The first time you call they will say no, so call back the following week and do it all over again.

Most of them will drop the interest rate within three tries. If they don’t… surf those balances. Even if your credit isn’t great most card companies will bring you on for 12%. Of course don’t roll three cards over to one, each balance should be surfed separately. That way if you are late on one they don’t hit you as hard. Hope that helps!