Balance Transfer $75K from Chase and AMEX

[Kiesha8185]

Wow; thank you to everyone who gave their suggestions to possible options. Going to answer all questions, please let me know if I missed anything or if there is anything you need to know:

1. We make about $100K a year, total.
2. We are down to bare bones for bills: both cars paid off, only internet ($40) because I am in school, car insurance paid every 6 months, military pays health insurance, no eating out...I cook. My baby's formula is EXPENSIVE...runs us about $350 a month because he was born 3 months early and needs special formula. Breastfeeding is not an option because of the medication I am currently on. We are in the process of trying to get the health insurance to pay for his formula.
3. My FICO scores: 654 (EX), 680 (TR), 667 Experian
4. Hubby FICO scores: 696 (EX), 695 (TR), 706 Experian. My hubby's name is not listed on the AMEX account, which is probably why his scores are higher even though he has some negatives.
5. I just checked my 401K, I actually have $17K in there and I will get maybe $10K after all the penalties. We have $12K in savings.
6. We do not use the cc's anymore.
7. We do have a mortgage but it's not a VA loan.

I am going to look into loan consolidation.

[peghede]

CH 7

And walk a way  a winner. You can try to insanely pay it off but i think you'll fail,the sooner u file ch7 the sooner u can try rebuilding credit back.

No Credit of fico is worth loosing health ,stress and years outta life.

[9CLINE]

How is OP losing by repaying what they spent?I personally can see why this person would do it (med emerg, & job loss),but She has stated that they have made the needed adjustments to make this work for them,, I'm going w/ CCuriosity on their statement ,,I don't think Bk was meant for ,,oooh I spent to much and don't want to cut back so I can repay.. so I 'll file a Bk thus never learning actions have consequences and making same mistake over and over again,,filing multiple BKs like a family member of mine has done......

[Anonymous]

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@Kiesha8185 wrote:

Wow; thank you to everyone who gave their suggestions to possible options. Going to answer all questions, please let me know if I missed anything or if there is anything you need to know:

1. We make about $100K a year, total.
2. We are down to bare bones for bills: both cars paid off, only internet ($40) because I am in school, car insurance paid every 6 months, military pays health insurance, no eating out...I cook. My baby's formula is EXPENSIVE...runs us about $350 a month because he was born 3 months early and needs special formula. Breastfeeding is not an option because of the medication I am currently on. We are in the process of trying to get the health insurance to pay for his formula.
3. My FICO scores: 654 (EX), 680 (TR), 667 Experian
4. Hubby FICO scores: 696 (EX), 695 (TR), 706 Experian. My hubby's name is not listed on the AMEX account, which is probably why his scores are higher even though he has some negatives.
5. I just checked my 401K, I actually have $17K in there and I will get maybe $10K after all the penalties. We have $12K in savings.
6. We do not use the cc's anymore.
7. We do have a mortgage but it's not a VA loan.

I am going to look into loan consolidation.

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Loan consolidation has its negatives. Basically you stop paying the cards, and the company you're doing the consolidation with, opens an account for you and the money goes into that account. You then have to accumulate the money you owe AND THEN you pay the creditor. Debt consolidators will charge a fee of course but if you settle, you might loose the relationship with the banks.

You could do the negotiation yourself, but again, you most likely will loose the relationships with those banks.

If you use your $12k, you would most likely pay $4K per card, you would run out of savings and your balances would still be high.

Last option would be Ch7. You would pay a couple thousands to file, keep your savings and 401k and be debt free.

I think you have some thinking to do based on what everyone said here :-)

Good luck to you!! Keep us posted.

[medicgrrl]

Is he an authorized user on the other 2 cards or are those actually his cards? If Amex is only showing up on your report, I would consider paying that down below 49% and then look into BT cards or consolidation loans. If either of you are AU on the others cards, I would remove yourself from the card and then list what is on who's report so you can get more feedback on how to raise your scores and maybe qualify for more options.

[CreditCuriosity]

Another thing to think about as well as not sure how it works, but I use to have my security clearance when working for the DOD as a civilian contractor and if your credit goes to crap then you lose your clearance or could and also lose your job as a result.   If her husband is in the military good chance he has some type of clearance and this could possibly cause an issue.. Just something else I thought about if one defaults on their obligations through bk7.\

edit:  although with medical they might be willing to be more relaxed as unavoidable.  I just know one is at more risk as the gov't sees to sell secrets, etc if one if in debt or hardship badly is the lectures I got back in the day when I was going through getting mine.

[CreditMagic7]

Hope you are able to take some comfort Kiesha8185 that (as you see) you have all of us fully in your corner on this thing and support those efforts which will work best for your family as you set that plan for a firmer handle in what direction to take.

Have to admire your sense of responsibility and determination of effort on what has been and is still a challenge, but am in full confidence something is going to break to your favor even while you work through this to try to manage this ordeal and establish the breathing room needed.

The important thing is that while you still have options, and although some suggestions might not sit so well, if there is a positive to be found, it's that you can draw on all the choices you do have while there's still time with a clear head, look them over, and then look them over again until settling on the decision(s) that your family see's is the best possible choice.