Help Eric improve his debt-income ratio....PLEASE!!!!!

[Eric H.]

Greetings BP Fam,

I have over 250k in debt (credit cards, mortgage, school loan, car loan) and I'm only bringing in about $400/month. I haven't had W2 income in over a year and my wife is working part time. My LLC is approaching its 1st birthday. I’m surviving somehow but of course I look horrible to lending institutions. What is the 1st step you would take to fix this???? Debt settlement agency called suggesting I cancel all of my credit cards and I might be able to get a lower interest rate and/or reduction in principal. Not really sure I believe that. If someone has done it, please chime in. I was thinking I don’t want to lose the credit history associated with those cards. What is worse? Large amounts of unsecured debt or short credit history? In two years will come better tax returns from business and my wife will be settled into her new career. I want to get conventional financing for max 25k. I have the 25% down payment needed. Should I just be patient or can I find a solution within the next six months? Not looking for creative financing options here. Just a way to look better to the banks.

Thanks in advance.

Sincerely,

E. Harris