Debt Consolidation vs Bankrupcy

[Lily030306]

Hello,

I need some advice for credit problems. I have been using my credit cards to pay my school and some medical procedures I  had. I am currently at a 20k debt can't can't find my way out. I tried negotiating with my creditors  for lower rate but I can't get any help. I am reaching to a point where I can't sleep just thinking about my situation and a solution to it. I make 1200 a month and I pay my car, insurance, rent and cell phone. Due to the economy my employer had to cut our hours and that's the reason why I find this alot harder to handle. I want to continue higher education but don't know if  debt consolidation or Bankrupcy will affect me in future. Can someone please help me decide what path to take. I have tried applying for personal loana but can't get approved. Please I am alone and have no one to go for advice. 

Thank you,

[EmmyWannabeOrman]

Take a deep breath. I think Bankruptcy might be a good solution as my parents filed for it years ago due to excessive credit obligations. With Bankruptcy you must be prepared to live a credit free life for years, meaning it's going to be hard to almost impossible to finance cars or obtain any kind of loans. Being strictly cash and carry for years will be an adjustment, but it's manageable. I wish you the best of luck and have my fingers crossed for you

[myjourney]

Welcome to the forum

While I don't recommend BK 

You can rebuild credit after and not have to live an all cash way of life 

[youdontkillmoney]

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@Lily030306 wrote:

Hello,

I need some advice for credit problems. I have been using my credit cards to pay my school and some medical procedures I  had. I am currently at a 20k debt can't can't find my way out. I tried negotiating with my creditors  for lower rate but I can't get any help. I am reaching to a point where I can't sleep just thinking about my situation and a solution to it. I make 1200 a month and I pay my car, insurance, rent and cell phone. Due to the economy my employer had to cut our hours and that's the reason why I find this alot harder to handle. I want to continue higher education but don't know if  debt consolidation or Bankrupcy will affect me in future. Can someone please help me decide what path to take. I have tried applying for personal loana but can't get approved. Please I am alone and have no one to go for advice. 

Thank you,

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Would stopping school and working multiple jobs be an option? Right now your main concern is generating income to pay down the debt?

[parakleet]

Do you qualify for student loans? paying for tuition with credit cards is not a good idea for most. Especially if you don't have the income to make the monthly payments. Good luck.

[Juss11]

I've heard of people getting credit less than a year after bankruptcy.

[TurboFX]

Debt consolidation will default and close all your credit cards. Your credit will be screwed and you will still make payments every month. Bk and get rid of all your debts and start rebuilding your credit right away as oppose to wait 2+ years to get out of debt consolidation before you can start to rebuild. Got my first credit card (Cap 1) 1 month after discharge. My fico is in the high 600 1 year after bk and have Cap 1, Barclay, Discover, Amex Au, NFCU credit cards. Good luck and don't stress too much over it.

[TurboFX]

Debt consolidation I'm referring to 3rd party companies such as consumer credit counseling. If you were able to obtain a 20k loan and pay off all the cards and comfortably manage the new payments then that would be the best option.