10-27-2011 04:31 AM
10-27-2011 04:57 AM
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!
10-27-2011 05:14 AM
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.
10-27-2011 05:19 AM
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 company...work 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.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions based on Experian or Equifax data (additional FICO® Score versions based on TransUnion data are not currently available on myFICO.com). 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.