$50,000 in credit card debt, Options?
I have a friend who is in $50,000 credit card debt and she is very stressed over it. I'm concerned for her health, so I'm asking on her behalf.
She has several credit cards totaling $50k and the minimum repayments are between $1000 and $1500 per month (closer to $1500) which she is struggling to pay and still relies on the credit cards for every day costs. Because most of money she pays off only covers interest this is a never ending issue.
She approached a consultant who offered to get this to closer to $1000/mth with the whole amount being paid off in a few years (4 or 5 I think it was). This would involve cutting up all the cards. For this sum of money per month she is reluctant to commit to that.
About a year ago she was negotiating replacing the credit card debt with a loan secured against her house (which she's still paying off also) but that deal fell through. Maybe just as well because I read on an advice site that a secured loan is not the best way to solve this.
Can anyone recommend any better solutions? Thanks for your time.