Should I file or get a 12k limit credit card?

[CurlyShirley]

I am really struggling with the decision to file Ch. 7 or not. I am able to afford all of my credit cards and monthly expenses. My problem is the 11k I have in loan debt. Should I apply for a credit card with that limit? Are there any legit consolidation companies I should try? Or just file ch 7? My credit card debit is under 7k, collections debt around 6k, and loans are 11k. I am a student, and took a pay cut when I lost my job, so my Income is only 30k.

[pipeguy]

This is a quote I made in another thread recently:  

If I were you I'd buckle down and pay things down as quickly as possible and you'll recover fairly quickly. Bankruptcy on the other hand is 10 years of haunting, not so much that you can't recover creditwise, but it'll haunt you at times and 20% of your annual income is not worth that price IMO.

Again in my opinion, bankruptcy should be used as a matter of last resort, not as a matter of convenience and yes I've been there, much MUCH worse than $20k in the hole and I recovered without bankruptcy, so my advice is from that point of view too. 

You said: I am able to afford all of my credit cards and monthly expenses. My problem is the 11k I have in loan debt."

Are you really going to file bankruptcy over $11k when in fact you stated you can afford to pay the debt?  IMO the fact that you are in debt is no reason to do anything but work to pay off the debt(s) filing bankruptcy is a cop out in your case, not a need. Not trying to be harsh, just stating facts - at least IMO. 

[CurlyShirley]

The loan payments are over 900 a month. My car payment is over 500 and I am upside down 11k on that. If I don't pay my loans, wouldn't they file judgements against me? Are judgements and garnishments just as harsh as a bankruptcy? If my check gets garnished I won't be able to afford anything.

[CurlyShirley]

Side note: My total debt is actually 34k, I didn't mention everything.

[kimbersleep]

Are the loans student loans?

[CurlyShirley]

Personal, unsecured. I have 6 today.

[ABCD2199]

if you have collections for $6000, I doubt you will find someone to lend you any amount or grant you new credit cards.

How much do you earn monthly?

[CurlyShirley]

Does it matter that the 6k is medical? All 4 just posted to my credit this year. I clear about 2500 give it take.

[ABCD2199]

 Medical collections are treated the same as any.  Your FICO scores will plummet from any collection activity, moreso brand new ones.

$2500 should be enough to pay more than the minimum and clear that debt out without BK.  Do you have a budget?

[CurlyShirley]

Yes, that's when I realized I was over extended. I just joined NFCU today, and the lady said I could try to consolidate everything.