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Major debt

New Contributor

Major debt

So it's been a really tough 18 months for me. I lost my job last year and then lost the next one this year. I am happily employed now and hopefully will be for the foreseeable future. I have excellent credit ( between 720 and 780 ), but I owe about $35K on two credit cards (0%). I also owe about $11K on a student loan (6% fixed). 

I am in the process of separating from my wife so things are a bit tough. She is suggesting bancruptcy (under her name), but I don't want to take that path. I worked very, very hard to build up my credit and I am willing to spend the time (as long as I need to) to pay everything off on my own. 


My two questions:


1. Does this sound like a lot of money to pay off and I should consider bancruptcy, or is this doable? I am thinking I can pay about $1000-$1300 a month, which is all principle, so that's about 3 years of hell to pay off my CCs (not including the student loan in this)


2. On the student loan, I am paying the bare minimum and will pay it off by 2028 at this rate. Should I transfer it to a 0% CC and try to pay it off that way? Is that even legal and does it sound like a good idea?


When the 0% rates expire I can shuffle things around as I have a lot of credit cards with no balance on them at all. 


This is very depressing. CC debt creeps up on you and it's very hard to get out. I was always so careful, but in this society of greed and other factors, people are trapped by their own circumstances =(



Thank you in advnace,



Message 1 of 7
Credit Mentor

Re: Major debt

1. If you can devote that much to the card payments, doing the balance transfer shuffle over the next 3 years shouldn't be a big deal. Not sure what your income is, but probably not worth a bankruptcy. If you were struggling just to meet the minimum payments that might be a different story.

2. For the student loan, yes it's legal and you could write a convenience check to transfer it to a credit card but personally I think it would be a bad decision. Your payments on those each month are much less than if they were sitting on a credit card. You have very good credit; have you considered refinancing the student loans? You should be able to get lower than 6% on private loans and lower yet if they are federal loans.

It's tough but doable. I was at about $150k 2 years ago, now under $100k and chipping away. Kudos on looking into your options before things get unmanageable.
Message 2 of 7
Super Contributor

Re: Major debt

As for your student loan. I suggest finding one of those loan calculators and put in our student loan payment +$25. You will be surprised

how quickly your balance will drop. Paying just a few dollaars more a month can literally shave years off the loan life..


You might want to monitor the Bankruptcy boards herre if there is any consideration given. 


Good luck


PS  Blame all the CC charges on your soon to be ex.  Muhahaha

>3/2016 EX 644 CK-TU 642 CK-EQ 660 WalMart- 671.
>5/2023 All 3 reports 840ish (F8) F9s = 850 but my app finger is still twitching
Message 3 of 7
Not applicable

Re: Major debt

1. What is your monthly payment on each of the two credit cards?

2. What is your monthly payment on your $11k student loan?

3. The 0% credit card, how long is that 0% for? 1 year, 2 year??

4. What is your monthly expenses on insurance, cell bill, internet, cable, groceries, gas etc.


I think i might have a plan, just need to know the above Smiley Happy


Cheer up, things could be worst.

Message 4 of 7
Valued Contributor

Re: Major debt

If you can devote that much to the card payments your math is good.

You should be able to pay it off in about 3 years.



Message 5 of 7
Moderator Emeritus

Re: Major debt

BK possibly isn't an option depending on what you make.  With that said you said you could pay 1k+ towards principle per month thus that is probably your best bet especially if you are at 0% then when that runs out you can start to do the BT shuffle to 0% apr CC's or lower interest rate cards.  Work on getting the most principle paid down now while you have 0% so your utilization is better for when you are close to running low on the 0% then get another 0% card and rinse and repeat.  2-3 years isn't that bad compared to alternatives of BK which is 10 years (if even possible) or defaulting and having 7 years of hell as well plus possibly garnishments/judgements, etc.  


Best of luck on your journey, it won't be fun, but certainly doable.

Message 6 of 7
Not applicable

Re: Major debt

I was in your position 7 years ago.   Ex charged up some cards as soon as we separated.  Even didn't pay a loan that had plenty of equity in it and got repossessed.  Legal fees were around 20k as my ex tried every delay possible. Then she declared bankruptcy.  Then I got hit with alimony which I just agreed with the amount to get the thing to end and stop having to pay lawyers. Then Heat pump and water heater went up in same week. 

If your are on good enough terms with your ex I would recommend arbitration. The attorney's just suepona everyone's bank account and financial information so they know how much money they can get out of you in legal fees. 

Message 7 of 7
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