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Should I file bankruptcy? -- $40k+ cc debt

Scupra
Super Contributor

Re: Should I file bankruptcy? -- $40k+ cc debt

I don't think Norman is saying to stop forever. He is just pointing out that the interest you pay on all this debt is essentially cutting into your 401k "match". Exactly like when we talk about carrying a balance on a rewards card, the interest is effectively lowering the amount of your rewards. I am a huge believer of taking advantage of the money on the table, don't get me wrong. You are here contemplating bankruptcy though, maybe a year of not contributing, or as much, could help you see the light at the end of the tunnel..

 

In the end we have no idea what home and financial life is like at home. It boils down to where you want to make cuts and how bad you want that debt paid down Smiley Happy

Filed BK7: 7/2012 (start score EQ 560 / TU 529) Discharge 10/2012
759 EQ FICO 03/2021
754 TU FICO 03/2021
743 EX FICO 03/2021
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Message 21 of 22
NormanFH
Super Contributor

Re: Should I file bankruptcy? -- $40k+ cc debt


@Scupra wrote:

I don't think Norman is saying to stop forever. He is just pointing out that the interest you pay on all this debt is essentially cutting into your 401k "match". Exactly like when we talk about carrying a balance on a rewards card, the interest is effectively lowering the amount of your rewards. I am a huge believer of taking advantage of the money on the table, don't get me wrong. You are here contemplating bankruptcy though, maybe a year of not contributing, or as much, could help you see the light at the end of the tunnel..

 

In the end we have no idea what home and financial life is like at home. It boils down to where you want to make cuts and how bad you want that debt paid down Smiley Happy


Yes, its absolutely a temprorary thing - mostly for the motivational factor you get for seeing balances zeroed out quickly. Motivation is everything in getting out of debt quickly. If things do not appear to be progressing its really easy to lose that motivation.

Most Recent FICO 8 Scores EX616/TU587/EQ607 01/09/2018 Starting scores 553/485/543 08/25//2017
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Message 22 of 22
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