Considering Bankruptcy and Need hard honest advice

[twono]

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@Phoenixupward wrote:

It's true in my case.  Once my report updated, my scores were 650-660 range 2 months after my discharge 7/26/18.  I believe it was on the strength of my student loans.   My first credit card approval was a Blaze Mastercard for 1.5k starting limit.   I guess I just got lucky.  My rebuild has been quick and effortless.   As a matter of fact, I got approved for 2 Discover cards (2k & 1k) 3 months apart and my discharge wasn't a year old.  I financed a 2015 BMW for less than 9K in late January 2019( huge down payment)and paid it off  January 4, 2020.  I'm truly thankful for my blessings as well as humbled.   I've learned a lot about credit but my real love is the best liquid asset which is cash. 💰💰💰💰

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Sounds good.  I have 2 inq's on each bureau but several will be falling off soon and will have 0 inquiries when i build my house in Oct 2021.

I went 10 mos without using credit last year and it was definitely a good learning experience.  But now i use my 2 cards for everything but I PIF exccept for that 1-2% on 1 card.

Sorry for the threadjack OP.

[Phoenixupward]

@twono, you are right in how you are handling your credit. IMHO, I feel that long term debt should only be for the following:  purchasing a home, serious educational pursuits, and entrepreneurial endeavors.   Automobiles, furniture, appliances, electronics, vanity procedures (Botox, facelifts, lasik, dental implants) are short term debt that should be paid off within 2 yrs, preferably in one year.  Clothing, shoes, jewelry, etc. should be a PIF matter before the statement closes.   If a person cannot afford those items, then they don't need them.   All vacations should be paid in full before one boards the plane or the cruise ship. 

Credit is like a mistress, if you can't keep up the payments it will turn on you and kick you to the curb and find another benefactor.  Cash is like a loving and loyal spouse. It will be with you during good times and bad times.  
 
Good luck with your new home.   

[Phoenixupward]

Also, weddings can be financially draining.  Keep it simple. It's about the love between the newlyweds not a debt laden event.   

[Anonymous]

I’ve recently just filed and I believe you are making a solid decision. I would never suggest letting your credit tank with charge offs and lates with the hope that you can settle later. When I filed, my scores were so bad that when the petition hit last week, I only lost 17-20 points. My filing didn’t destroy my credit, it was everything that led up to it and it will make rebuilding harder than if I had just filed sooner.

Don’t wait. Why spend the next 5 years dodging creditors and trying to fix the past when you can start working on your future? Your kids deserve a healthy parent and financial stability just like my daughter does. We can’t be our best for our little kids if we are constantly dodging calls, afraid to open the mail, and wondering if at any time the false bottom under us is going to fall down.

Best of luck to you! Feel free to message me anytime! I’m no expert but can definitely understand where you’re at!

[Phoenixupward]

Absolutely.  Filing for bankruptcy is not a moral decision but a financial decision.  One should not allow emotions or guilt to prevent them from utilizing this legal action.  Parents who are trying to raise children under the duress of debt are fostering a negative environment for their children.   Children are very intuitive as well as observant.  Although parents may attempt to mask their financial stress from their children, children will feel that parents are angst stricken.  One's home should be a place of serenity to recharge and connect with their love ones.   We have no control on the ongoings of the state of world but when one walks through the doors of their home, one should feel secure and financially stable.