NFCU - should I stop paying cc

[ZSR]

Hello, roast if need be. I have gotten into quite a bit of credit card debt mainly with NFCU over the years for many unexpected expenses. I am 100% current on all my payments but have $39,500 ($1000/mo) in debt to NF in cc. I already have a vehicle for my wife and I and we already have a home. I am currently active duty military as well.

my question is... should I stop making payments on those accounts and let it go to collections or will NF reduce the amount owed for me to help me out? I do not want to file bankruptcy or use a credit service if I don't have to.  Not sure what I should do. Any advice on solving this NF debt issue would be great!

[FlaDude]

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@ZSR wrote:

Hello, roast if need be. I have gotten into quite a bit of credit card debt mainly with NFCU over the years for many unexpected expenses. I am 100% current on all my payments but have $39,500 ($1000/mo) in debt to NF in cc. I already have a vehicle for my wife and I and we already have a home. I am currently active duty military as well.

my question is... should I stop making payments on those accounts and let it go to collections or will NF reduce the amount owed for me to help me out? I do not want to file bankruptcy or use a credit service if I don't have to.  Not sure what I should do. Any advice on solving this NF debt issue would be great!

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We try to be a no roast zone here, it's not the David Ramsey show Don't bother with a credit service, they can't do anything for you that you can't do yourself with advice from this forum. Hopefully you've explored alternatives that involve not defaulting, you probably know this already but as soon as the first 30 day late hits, it will damage your credit score for 7 years.

I don't know if NFCU will make any special provisions due to your active status, hopefully others will chime in here. 

[CreditCuriosity]

Do you have security clearance if in military?  Use to be when I worked for the DOD and had security clearance I would of lost it in that kinda debt and defaulted as they looked at time they looked at financial troubles as being a security issues with said clearance.  That is my main concern I would be worried about although military/dod has likely changed  since i was worked for the pentagon as a civilian contractor.

NFCU I honestly don't know if they will settle but if you burn them they will never do any business with you again for loans that is a fact unless made whole again.  Other people can hopefully answer your other questions

[MrFiah]

I don't think this can be answered without knowing what kind of income and other money you have along with any other debt

[ZSR]

Currently, monthly income is $6200. Bills and expenses (minus gas, groceries, etc) are approx $5200/mo. Wife is stay at home and we have 4 kids. Doesn't has just seemingly been a huge issue and I know I make good money but the excessive amount of interest that comes with these accounts is unbearable. I have attempted to explore many other avenues and talked to debt companies but been relucenent to pull the trigger due to the possible negative impacts going forward for my family. I just want to get out of debt for my family. Full picture is that we have a combined total of $75k in cc debt but the NFCU cards are the absolute worst because of the minimum payment and interest rates. The others I can manage. 

[ZSR]

I do have a clearance but I'm not sure that's an issue as much any more. I know a buddy of mine had to file bankruptcy over a home that he was renting out and was still able to get and maintain a TS. 

[CreditCuriosity]

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@ZSR wrote:

I do have a clearance but I'm not sure that's an issue as much any more. I know a buddy of mine had to file bankruptcy over a home that he was renting out and was still able to get and maintain a TS. 

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Just something to be aware of is all if has any impact on you.  Guessing enlisted is different than a civilian contractor like i was which I was also level of clearance secret/ts/crypto, etc..  

[Gollum]

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@ZSR wrote:

Hello, roast if need be. I have gotten into quite a bit of credit card debt mainly with NFCU over the years for many unexpected expenses. I am 100% current on all my payments but have $39,500 ($1000/mo) in debt to NF in cc. I already have a vehicle for my wife and I and we already have a home. I am currently active duty military as well.

my question is... should I stop making payments on those accounts and let it go to collections or will NF reduce the amount owed for me to help me out? I do not want to file bankruptcy or use a credit service if I don't have to.  Not sure what I should do. Any advice on solving this NF debt issue would be great!

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I think it would be a bad idea to not make payments, thereby letting those accounts go to collections.

[FicoMike0]

Have you looked at a bill consolidation loan? If you're still current you might be able to finance the debt at lower interest. As far as defaulting on nfcu, I think it will be all or nothing. Your credit will spiral. Once it starts, you may be forced into bankruptcy.

[Lou-natic]

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@ZSR wrote:

Hello, roast if need be. I have gotten into quite a bit of credit card debt mainly with NFCU over the years for many unexpected expenses. I am 100% current on all my payments but have $39,500 ($1000/mo) in debt to NF in cc. I already have a vehicle for my wife and I and we already have a home. I am currently active duty military as well.

my question is... should I stop making payments on those accounts and let it go to collections or will NF reduce the amount owed for me to help me out? I do not want to file bankruptcy or use a credit service if I don't have to.  Not sure what I should do. Any advice on solving this NF debt issue would be great!

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I'm just going to tell you, the last creditor you want to burn is NFCU. I'd rather let everything else go and make sure I paid them. You will forever lose NFCU if you burn them unless you pay back every penny at some point in the future. I would look into alternatives other than just not making payments for sure.