Credit Card Center Advertiser Disclosure

Established Member
Posts: 32
Registered: ‎07-11-2009
0 Kudos

At wit's end: Which option should I choose?

I have an Applied Bank card with a limit of $2,500 and my balance is near max at 2,400. Between interest and Applied's monthly fees, they deduct $70 from my payment, leaving around $30 that comes off my balance. Times are just way too tough on me. I could do so many more important things with that $110 a month payment. I don't know whether to just stop paying them, close the account, or consider bankruptcy. Of my credit cards, Applied is the absolute worst. My credit score and report are unfortunately so bad that none of the options can really make it any worse than what it already is. I just can't afford that card anymore. Thanks for any help.
Frequent Contributor
Posts: 483
Registered: ‎05-06-2009
0 Kudos

Re: At wit's end: Which option should I choose?

Choosing Bankruptcy to avoid $110 a month doesn't seem (on the surface, based on given information, at least) to be a sensible option...

I know it sucks, but if you can afford the $110 a month, just keep paying it.  You have to pay a lawyer lots of money to go through BK, and you'll end up spending a significant chunk of that debt you are trying to avoid.. and you'll ruin your future for quite a while.   Call them, ask for a lower interest rate, a payment plan, a hardship.. something...

Or find a local Credit Union and go talk to them... see if they can help you with a personal loan or something.  $2400 just isn't worth it, IMHO.

By the way, as a side note...  You say you are paying $110 per month... but you are at $2,400 out of $2,500 limit.  This seems to imply that you are still spending on the card? (Otherwise your balance wouldn't be so close to your limit after paying >$100 per month.)  If this is the case, stop doing that.  Just pay your bill, cut up the card, and find little places each month to save a little bit of money... Skipping a cup of DnD coffee in the morning every day for 6 months and applying that to your bill will let you pay it off a year sooner!


Good luck! 

Frequent Contributor
Posts: 306
Registered: ‎01-12-2011
0 Kudos

Re: At wit's end: Which option should I choose?

After letting one of my cards become charged off a few years ago was the worst thing I couldve done and I feel so stupid for doing it looking back.  My credit was jacked for years and it was hard to get loans, another creditcard, a good rate on anything, you can bet I won't be letting anything like that happen again ever.


BTW what are you scores?


I would just keep paying it, and like he said ^ call and ask for help or check your options with them.  Just letting it go seems easy now, but trust me, a few years from now you'll look back and regret it.

Starting Score: EQ 515 TU 490 EXfaco 510
Current Score: EQ 660 TU 665 EXplus 661
Goal Score: 700

Take the FICO Fitness Challenge
Established Contributor
Posts: 799
Registered: ‎09-27-2011
0 Kudos

Re: At wit's end: Which option should I choose?

I have to echo what the other posters said. Take it from many who know...letting a card default and/or declaring BK is a decision that will haunt your credit report for quite some time.


Take my situation, for instance. I can pay down my debt and let my accounts age...and maybe I'll be in the 700s. But AMEX will NEVER do business with me until that BK falls off...and other prime lenders, if the do let me in, will handle me with kid gloves and probably give me puny limits until many years have passed.


These are mistakes I have made...don't make those same mistakes. Talk to the card out a better plan to pay the account down. They sure as heck don't want you to go the BK route, so they will likely want to find common ground that is beneficial to you both.

I'm Spartacus!

hr>Starting Score: EQ 546, EX 547, TU 580
Current Scores (lender): EQ 725 , EX FICO 720, TU 737 FICO scores>
Goal Score: 750
Take the FICO Fitness Challenge

Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.

† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
‡ Credit cards for FICO Score ranges: The score ranges are guidelines based on internal myFICO analysis of actual applicant approvals, and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range. These ranges were not provided by any card issuer.

* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.