I'm giving up...and i couldn't be more upset about it

[mgs2010]

I've posted on here about my situation before...I thought I had a decent plan to pay off my massive amount of credit card debt...after realizing that I'm really not getting anywhere when I have to dip into my savings and turn to credit cards just to 'swim'....i decided that i'm going to file a chapter 7 bankruptcy. I'm 22 and I'm going to file bankruptcy. I have never missed a payment on anything, everrrrrrrr. but, I just got in WAY over my head. with my student loans coming due in the next few months I realized that even if I decided not to file bankruptcy I would still be living paycheck to paycheck, not even getting by for the next 10 years..... Or, I can take this as one seriously epic life lesson learned and focus on things that matter more for the next ten years...like focusing on my career, purchasing a home, and starting a family.

I just had a consumer credit counseling consultation and they even suggested bankruptcy because my debt to income ratio is so high and they would not be able to reduce my interest rates much lower than they already are (11% on average, lowest being 6.25% and highest being 17%). So, with that being said I just wanted to say thanks to everyone who gave me advice. I really have learned a lot from this forum. I'm probably one of the few 22 year olds out there with over 30k in CREDIT CARD DEBT...and thats because I had the knowledge to build up a very good credit rating to get limits as high as I did. I guess I felt like the score was all that mattered, not the numbers behind it....and it caught up to me, fast.

I've learned that a high fico score means absolutely NOTHING about how smart you are with your money...I read on here all the secrets...I knew exactly how to make a lot of debt look small by only using a very small percentage of my credit limits........the score seems designed more towards the percentage than the actual amount of debt, if it were more based on debt then I doubt I would have made it this far.

I don't mean to post a novel so I'll wrap it up by saying this...be careful with your credit and never lose grip of whats really going on with your finances. I found it MUCH too easy to focus on my score than my actual debt...I should have done things the other way around. I should have focused on my actual debt to raise my score up...instead I learned how to manipulate the system so that my score would be amazing even though my debt was out of control.

I'm going off the credit grid for awhile, I need to learn to live within my means before I even think about rebuilding my credit. I never want this to happen again.

Thanks everyone.

[Uborrow-Upay]

mgs2010, your message should be permanently stickied at the top of this forum.  I think it's that important, especially for young people just starting out.

I don't know when you're planning to file, and I realize you've gotta do what you've gotta do, but if you can take a week or so to think outside the box about your situation, you may find another solution. 

Now is not the time to plan on living within your means.  Now is the time to increase those means.  Get creative.

You're smart.  You're young.  And right now, right at this moment, opportunities are everywhere.  There has never been a better time in this country, nor has there ever been a greater need in this country, for energetic, creative people to get working on solving difficult problems.  One decent idea can turn your life around.  Make it happen.

$30k, in the scheme of things, isn't a lot.  If you can hang in there a while, and use the brains you've obviously got, you will find a solution.  You've just got to try. You'll be amazed at what you find if you only look for it.

You can do whatever you set out to do.  Think it, believe it, and it will happen.

Don't ever give up! 

Give yourself a chance, now.  I believe in you.  If only you can believe in yourself, you've already won half the battle.

[hyprble]

I probably had over 26k that grew to over 40k of consumer debt in my 20s, so you're not alone in the situation.  Even my accountant suggested bankruptcy, but I was able to barely scrape by.  The other poster's right about the many opportunities you still have - things can only go up from here and the hard lessons we learn.  Best of luck!

[Wolf3]

I view this as a positive step.   You are facing up to the situation and taking the steps necessary to move forward in your life.   Going through BK is easier than what you have been doing.   You can recover from this faster than you think. 

[Anonymous]

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@mgs2010 wrote:

I've posted on here about my situation before...I thought I had a decent plan to pay off my massive amount of credit card debt...after realizing that I'm really not getting anywhere when I have to dip into my savings and turn to credit cards just to 'swim'....i decided that i'm going to file a chapter 7 bankruptcy. I'm 22 and I'm going to file bankruptcy. I have never missed a payment on anything, everrrrrrrr. but, I just got in WAY over my head. with my student loans coming due in the next few months I realized that even if I decided not to file bankruptcy I would still be living paycheck to paycheck, not even getting by for the next 10 years..... Or, I can take this as one seriously epic life lesson learned and focus on things that matter more for the next ten years...like focusing on my career, purchasing a home, and starting a family.

I just had a consumer credit counseling consultation and they even suggested bankruptcy because my debt to income ratio is so high and they would not be able to reduce my interest rates much lower than they already are (11% on average, lowest being 6.25% and highest being 17%). So, with that being said I just wanted to say thanks to everyone who gave me advice. I really have learned a lot from this forum. I'm probably one of the few 22 year olds out there with over 30k in CREDIT CARD DEBT...and thats because I had the knowledge to build up a very good credit rating to get limits as high as I did. I guess I felt like the score was all that mattered, not the numbers behind it....and it caught up to me, fast.

I've learned that a high fico score means absolutely NOTHING about how smart you are with your money...I read on here all the secrets...I knew exactly how to make a lot of debt look small by only using a very small percentage of my credit limits........the score seems designed more towards the percentage than the actual amount of debt, if it were more based on debt then I doubt I would have made it this far.

I don't mean to post a novel so I'll wrap it up by saying this...be careful with your credit and never lose grip of whats really going on with your finances. I found it MUCH too easy to focus on my score than my actual debt...I should have done things the other way around. I should have focused on my actual debt to raise my score up...instead I learned how to manipulate the system so that my score would be amazing even though my debt was out of control.

I'm going off the credit grid for awhile, I need to learn to live within my means before I even think about rebuilding my credit. I never want this to happen again.

Thanks everyone.

---

Don't feel like the Lone Ranger.  Although right now it may be hard to fathom, at some point in the not-to-distant future you'll look back at this as a defining experience which enabled you to grow not only wiser, but more mature.  Every body steps on it and that's why we have the concept of a Fresh Start for everybody.

In a way you're very lucky that it happened now rather than later on down the road when you'd have a house, car and possibly even family to lose.

Find a good bankruptcy lawyer and remember we are here if you have any questions, issues or rants in the future!

[jdxprs1]

been there done that. here is some advice....

before you file, while your scores are still good, get a couple of credit cards. keep the balances low to zero. file bankruptcy on everything else that you can. but keep those two credit cards. i'd also advise you to buy a new car first. nothing expensive, just something that is reliable so that you wont get killed on interest rates if you need a car in the next year or so. also, the nice thing is, if you live in a drive through state, if you ever default on the car loan there is no damage additional to your bankruptcy.

if you have a car loan and two credit cards, you'll have very good credit again within a year of filing bk.

Remember, the average millionaire in the U.S.A. files bankruptcy 3 times in their life.

[Anonymous]

file bk !!

[Creditaddict]

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@jdxprs1 wrote:

been there done that. here is some advice....

before you file, while your scores are still good, get a couple of credit cards. keep the balances low to zero. file bankruptcy on everything else that you can. but keep those two credit cards. i'd also advise you to buy a new car first. nothing expensive, just something that is reliable so that you wont get killed on interest rates if you need a car in the next year or so. also, the nice thing is, if you live in a drive through state, if you ever default on the car loan there is no damage additional to your bankruptcy.

if you have a car loan and two credit cards, you'll have very good credit again within a year of filing bk.

Remember, the average millionaire in the U.S.A. files bankruptcy 3 times in their life.

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I like this idea, not sure you will be able to bring any credit cards through, you might get away with it if they are at zero when the bk attorney pulls your credit, but a car loan you could re-affirm and keep through bk.  Something I wish I knew when I filed is you don't have to go late on your payments before you file. My lawyer told me to stop paying 3 months before I filed, when I came through bk my score was in the 400's because everything was so delinquent before the bk happened.  My best friend that filed a couple years after me, never missed a payment and didn't stop paying until the day the bk was finalized.  After bk was finalized his score was still around 680 and the first card he got one month after bk was capital one with a 5k limit!! now just a couple years later he has over a 720 score, mortgage, car loans, and any credit card he wants besides chase and amex that he is blacklisted from.

[jdxprs1]

you keep the cards, preferably with a very small balance on them. dont include them in bk and dont tell them you are filing.

[Creditaddict]

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@jdxprs1 wrote:

you keep the cards, preferably with a very small balance on them. dont include them in bk and dont tell them you are filing.

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Most likely you are not going to be able to do this anymore... BK Attorneys pull credit from my understanding and anyone and everyone on your credit file gets a letter saying you are going through bk rather you owe a balance or not and almost all banks are going to close you. So my suggestion would be to make sure you don't burn every bank out there in a bk, people like capital one and household will give you a new card as soon as bk is finalized if you didn't burn them in the bk.  Some will still give you credit again even if you did burn them, but people like chase, amex and bofa you are not going to be able to get a card with after bk even if they were not included