We have a ton of credit card debt what should we do,?
Total debt is meaningless to us unless you tell us what it is from 2 car loans at $40K a piece with $20K in cc is different than $100K in cc. Additionally, you don't tell us your situation. If you have one breadwinner in the house but the other spouse is not working yet has a master's degree that's different than 2 people already working 40+ hours a week. It's also different if household income is $200K vs $60K.... Money is the top reason for divorce, so you need to get into family counseling.
You need to get your sheet together, once and for all. If Princess wants to spend like a Rockefeller, she can get a good job that pays like $100 per hour.
Suggest you talk to the folks at the National Foundation for Credit Counseling, a not-for-profit alliance of credit counselors, supported in part by the banking industry, that will help you to figure out a way to gradually get out of debt. They don't promise miracles, but can help you to develop a repayment plan and how to best budget your money. Their fees are based on a sliding scale based on your income. You can find out more here: http://www.nfcc.org
If your credit is otherwise good, try to negotiate the balances down if you pay in full, and then get a home equity loan to pay them off. This only works if you can control future spending and not run up a lot of debt again. The home equity loan will be at a much lower interest rate than the cards. You may receive a 1099c for any amounts forgiven and you have to report that as income on your tax return.
It's not good but using the equity in your home is probably the best solution. Saving needs to be kept for emergency. Refinance and pay all the debt off and do not do it again. You can always repay the equity in your home later by making extra principal payments.
-First of all, block and dispose of your credit cards. -Second, talk to your bank [one at a time, start with the one which is charging the most] and try to negotiate to lower down your interest rates by telling them about your past valuable and honest credit history with them. -Third, start paying your costliest credit card bill first.
Don't use the debt relief services like you said. bad news. Settlements do show up as settlement paid in full on the credit, but people looking at it (for mortgages etc) know that means it wasn't paid in full. If you do use home equity you need to make sure your wife doesn't go right back & accumulate more debt.
I find it hard to believe that your monthly credit card payments are upwards of $100,000 (that's what "six figures" means). If that's true, you should declare bankruptcy. Assuming you mean in the hundreds, approaching $1000 (that would be four figures), you need to make a plan to pay it down. Don't endanger your home by taking out a home equity loan, don't put yourselves in the place of not having emergency funds by using up significant parts of your savings, and don't pay extra to consolidate loans. First. your wife needs to get a reality check. You need to cut up all of your credit cards,and then put the money you were putting into savings into paying off the balances. Start with the highest interest card and work your way down. Maybe one or both of you needs to get a second job to pay the debt down faster. If your wife will not do that, you are both doomed to a future of poverty and difficulty when the house of cards comes crashing down.
As you have to wash away loans, sell a house, and leave your loans.
That debt is costing you at least 18% per year just to maintain. On 100K of debt thats $18,000 just for the interest payemnts and I'll bet its more if you added it all up. If you have savings in a fairly low interest product (like a savings account) that is probably paying you a 4% return or less. In theory if you took 100K out of savings and paid off all your debts you are ahead at least $14,000 per year. However, this won't really work if the second you pay off the debt you start reaccumulating it. Also, if your savings are in the stock market paying maybe 9-10% per year but you can get a home equity loan for around 6% per year, then get the loan and use that - paying it off at 6% is cheaper than foregoing a 9-10% return (no guarantees but this is the best bet). So, pay off the credit card debt with whatever money you have or with a home equity loan or with both if you must. Use whatever money returns or costs the lowest interest rate but pay it off ASAP because its very unlikely anything you are doing is returning you the same rate as this debt is costing you. Once the debt is paid off (or even paid down) go carefully into your spending, with your wife, and make sure you are not accumulting more debt. Its fine is charge $3000 or whatever on a credit card every month if you make for more than that and pay all your bills and pay the debt off every month. If you charge more than you make and do this every single month then eventually you will run out of money (no matter how high your income is) and go bankrupt. Once you have paid off the debt and are sure you are able to pay it off every month and still buy what you need (but don't overspend) then you can start saving - this last step may be years off, or not depending on your situation.
Cut ALL the Credit Cards up. Talk to the companies involved to find out what the lowest amount is they will accept - I was in a similiar situation myself a few years ago and after talking to them they agreed to STOP adding interest to the money I owed. Set up direct debits with your bank - as soon as your wages hit your account, the bank will give the credit cards the amount you agreed.