Credit Cards Center Credit cards from our partners
Reply
Valued Contributor
Posts: 1,195
Registered: ‎03-23-2009

Re: My wife just told me about 50,000 in hidden debt.

I'm more thinking that if you can save your credit (especially since you have the income) it will help.  Having 1 person keep their credit intact is better than both of you ending up with credit counseling or something along that line on both reports.  If you can fix your credit, then you can start working towards lower rates and ways to save money while paying off the debts that are left in her name.  The problem is that even with the $10,000, you're going to be in the negative.  Paying off high interest rate cards is going to be difficult and very costly.  Improving your credit will hopefully open the door to some 0% balance tranfer options or fixed rate personal loans which could potentially save you thousands of dollars.

Frequent Contributor
Posts: 303
Registered: ‎08-20-2010
0

Re: My wife just told me about 50,000 in hidden debt.

Unless you lower your monthly bills and still spend years paying all this back you should talk to a bankruptcy attorney. Either way your credit is shot for a while. Currently 527. Will take years to get utilization down to bring scores back up. Your scores will recover quicker from bankruptcy.
Last app 1/2/2017.
In the garden until at least 6/2/2017.
New Contributor
Posts: 70
Registered: ‎10-22-2016

Re: My wife just told me about 50,000 in hidden debt.

[ Edited ]

For what it's worth I applaud you for the respect you show for your wife.  my humble opinion is bankruptcy as an absolute last resort.  I haven't ever gone through a bankruptcy but I hear its terrible.  I also don't see anything wrong with taking out a 401 K loan to give you some breathing room.  It will free up the monthly payment amount to start tackling other debts.  It's a slow and steady process but I as long as you stay current on your cards as the utilization goes down you'll see your scores respond.  So far you're taking a huge hit for Utilization, and probably AAoA, and the 2 late payments.  UTIL and AAoA will improve over time as you pay these cards down.  and the lates aren't major and won't hurt as much over time as well.  My 2 cents is take out teh 401k Loan and pay off the Discover Card, and whatever else you can that will free up as much money on monthly payments. Then attack smaller cards that you can pay big chunks on to pay them off using the money saved from the other monthly payments.  Get current on the Credit One cards as well.  I agree with the previous poster that said to keep them open for UTIL purposes only, but do not under any circumstances give them to your wife.  change the passwords to all of the accounts if you have to.  Addiction is a terrible thing, and you cannot enable, but I do appreciate how you're standing by her. 

 

THere is no perfect way and everyone will have an opinion.  THis is just mine

Established Member
Posts: 35
Registered: ‎07-09-2016
0

Re: My wife just told me about 50,000 in hidden debt.

No kids and I assume she is physically able to work yet she does not work while racking up debt

You blame yourself for not being "aware"?

Credit cards taken out in your name that you do not know about. ?

Bankruptcy attorney? I think you are looking for the wrong type of attorney...

Good luck though.
Frequent Contributor
Posts: 303
Registered: ‎08-20-2010
0

Re: My wife just told me about 50,000 in hidden debt.

Think of it this way.

Pay those debts down at $1,000 a month and it will take 50 months. That's over 4 years. It would be 2 or 3 years before your scores get back to decent.

Or you file bankruptcy and you bank $1,000 a month in savings. At the end of 50 months your scores will be in the 700's and you'll have $50,000 in savings. Bankruptcy is not that bad at all. Your scores will be in the mid 600's within 12 months.
Last app 1/2/2017.
In the garden until at least 6/2/2017.
Moderator
Posts: 12,982
Registered: ‎10-07-2014

Re: My wife just told me about 50,000 in hidden debt.

[ Edited ]

OP didn't post asking for marriage counseling so let's keep any and all posts on topic and following these guidelines Friendly, Supportive, Respectful

 

If you can't respond directly to the OP's questions, then don't post.  They have come here for credit advice so stay focused on that area.

Frequent Contributor
Posts: 396
Registered: ‎01-15-2017

Re: My wife just told me about 50,000 in hidden debt.

[ Edited ]

I would freeze my and hers  credit. I would to get my name off any unauthorized cards asap.  I would be looking at either getting a 2nd job myself and/or having her go to work asap.  I would payoff any cards i thought I might want again ie Disco so if I did have file bk they would not be included and after bk would let youget new cards however watch timing if you have to bk.  Next step cut all living costs to bread and water only.    The money I was putting in 401K now goes on debt payment.     You have a tough situation and it will take many months of inter strength. I think I read where Chase let a person close cards and pay off over 5 years at 0% maybe some will let you do that 

New Contributor
Posts: 70
Registered: ‎10-22-2016
0

Re: My wife just told me about 50,000 in hidden debt.

Backwoods makes some awesome points... freeze your credit reports so no more new cards can be opened... and you might call those store cards that you don't need and see if you can close them and pay them off over time without interest.

Contributor
Posts: 115
Registered: ‎01-16-2017
0

Re: My wife just told me about 50,000 in hidden debt.

I wouldn't take out a 401k loan.  It won't make a dent in your debt and if you switch jobs you will owe all the money back immediately or you pay huge tax and penalty.  Bankruptcy won't help you with taxes but could wipe out that credit card debt.  

New Contributor
Posts: 405
Registered: ‎02-07-2017
0

Re: My wife just told me about 50,000 in hidden debt.

At this point, I'd very, very seriously consider filing bankruptcy (as well as other actions to help your wife reduce exposure to temptation to feed her addiction - because that's what you're dealing with here, addictive behavior, and going into counseling to deal with it is the fundamental step forward for her - such as freezing your credit reports to make it impossible for her to apply for any more cards). This is a situation where the best thing you can do is wipe out whatever you can through BK and start over again. Don't take out any further loans, and especially do not cut into your retirement if you can possibly avoid it. If taxes are an issue, contact the IRS and your state and/or local tax agency and see what you can do about getting on installment plans to repay whatever's owed; in certain circumstances the government will even temporarily suspend collection actions on back taxes if you can demonstrate severe financial hardship, but you need to communicate with them about the issue.

Rebuilding credit since 2015 (BK filed 8/14, discharged 12/14) - started out in 570's, now approaching 700 (FICO 4/17:TU 627/EX 662/EQ 659 FICO 8 or 690 NG 2, VS 3.0 4/21/17: TU 684/EX 685/EQ 691)! $951 Cap One secured/$3000 Cap One unsecured/$800 Amazon Prime Store Card/$2500 Discover It (NEW 03-21-17)/$10k PenFed used car loan/$5k Navient student loan. In the garden until Sept. 2017 unless I get an offer I can't possibly refuse...

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 myFICO.com 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.