Exciting! We have experts from Novadebt visiting our Family Budget Boot Camp blog next week.

Reply to this message with your credit card / debt management questions! We'll send them all to the Novadebt counselors, and they'll choose a bunch to answer next week on the blog!

What is the best way to get rid of the debt. If we close the credit cards will it affect our credit scores? Is it possible to consolidate without ruining the credit?

Our mortgage eats up most of our monthly budget. Is it worth it to refinance with the current state of the economy and falling home values? Also, not many homes are selling in our area so we wonder if the mortgage company can run "comps." Still, we'd like to have more cash each month. Thanks!

Is it worth getting a home equity loan to pay off credit cards? How about cashing in retirement savings to pay off debt?

1. We only have one credit card that we never keep a balance on, but I'm worried about any policy/rate changes that may affect us- not to mention the yearly fees we are being charged ($50+).
We have a large credit limit, but if the company decides to hack our limit down (I've heard this is happening to good customers), would it be worth closing it down and losing the past 10 years of that cards' payment history? Or would that be shooting ourselves in the foot?

2. Also, does a short sale really affect your credit any less than a foreclosure? I've heard differing advice on this. If we did something like this, it wouldn't be because we HAVE to, but we want to get out from under this house eventually, if the value doesn't come up in the next 5-8 years.

I am currently taking Dave Ramsey's Financial Peace University and he's helped us tremendously, with the Debt snowball (paying off the smallest credit card first, then moving on to the next, etc) and with building a budget and sticking to it. Dave says that a credit score is actually a debt score, ie. how well you manage your debt, and isn't the be all and end all of your credit life. In fact, once you get out of debt, get rid of all the credit cards and live on cash, you won't have a credit score anymore. It is still possible to get a mortgage without a credit score. I highly recommend Dave Ramsey to anyone who wants to live debt free...all we are paying on now is our house and we are able to invest and save for retirement and college.

I am curious what credit experts have to say about Dave's program and his idea of the "debt score". Why is it drilled into our heads that we must live in debt in order to be successful? Why do we have to depend on this credit score?

We have been able to make all payments on time. Due to this no one at the credit card companies will assist us in paying down our debts ASAP. I have been told by a rep. at Wells Fargo that I have to miss 3 payments before they will start working with us. How does that make any sense? What should we do help ourselves?

Thanks!

My husband and I each have school loans that we've been deferring for years because we can't find a way to pay them back. We have credit card debt that we've moved around from one low interest to another and hopefully we get back enough from our tax refund to pay off at least one credit card. We are also struggling to make our everyday bills (utilities, phone, etc). The majority of our paychecks go to the mortgage and day care.

How do we begin to keep more money in our pockets from creditors so we can pay our bills comfortably? Is deferring our student loans just hurting us in the end? Also, my husband refuses to use a consolidation service because he says we would have to pay too much to the company and not our credit card, is he right?

I use my credit card to make all of my purchases, everyday and monthly bills. I pay off the bill in full every month and keep a register just like I do with my checkbook. I've heard it looks bad for your credit if you use a credit card for purchases such as groceries, gas and diapers. Will this affect my chances of future credit/credit limit increases or possible additional fees from my credit card company simply by being a good customer?