cancel
Showing results for 
Search instead for 
Did you mean: 

Debt Consolodation or Bankrupcy

Frequent Contributor

Debt Consolodation or Bankrupcy

Last year I purchased a home and maxed out on my credit cards totaling 25k. Having a touch time meeting all payments on time. Not sure what to do at this point. Cannot get any new credit at this point. Any advice on how I can resolve this situation? Thank you.

Message 1 of 9
8 REPLIES 8
Valued Contributor

Re: Debt Consolodation or Bankrupcy

I am in a similar boat. We need more info to make a recommendation though. Income, each card listed with its balance, limit, and APR. If you have been maintaining for a year with no lates then you probably just need to organaize them to maximize the effects of your payments. 


Experian: 677 (28) | TransUnion: 697 (27) | Equifax: 684 (6)
Gardening as of: 1-23-2018
Updated 1-25-18
Message 2 of 9
Senior Contributor

Re: Debt Consolodation or Bankrupcy

If you could list your cards and balances with CL and Aprs that would help a lot for us to see where you need the most help at .
Message 3 of 9
Legendary Contributor

Re: Debt Consolodation or Bankrupcy

Have you looked into the distinction between filing a Chpt 7 vs a Chpt 13 bankruptcy?

You dont have to necessarily stiff the entire debt.....

 

The ultimate decision as to whether to file for BK, and if so under what provision, requries a detailed analysis of your overall finances and assets.

I would advise an initial consultation with a BK attorney.......

Message 4 of 9
Established Contributor

Re: Debt Consolodation or Bankrupcy

Like the others said, we need more information, details on debt and income level would help.

 

I'm not a fan of debt consolidation. People can't borrow their way out of debt and only make the problem worse.

Message 5 of 9
Legendary Contributor

Re: Debt Consolodation or Bankrupcy

Do you currently have a home with equity upon which you can obtain a HELOC?

 

A problem with obtaining any loan to pay other debt is the temptation, when the loan is received, to use a portion for purposes other than paying existing debt.

Thus, you dig a deeper debt hole.

If your consolidation loan provides for payment directly to an existing creditor(s), it will not increase your total debt, and might help in the approval process........

Message 6 of 9
Established Contributor

Re: Debt Consolodation or Bankrupcy

HELOC as a last resort. Be careful going down this path.

Message 7 of 9
Frequent Contributor

Re: Debt Consolodation or Bankrupcy

I don't know where you live, but in Wisconsin we have something called Chapter 128 debt consolidation.  It allows you to choose what debts that you want to include (credit cards, payday loans, medical debts, reposessions, title loans, private student loans, etc) and you pay it back over the course of 3 years interest free.  It is filed with the court system, so your creditors must accept it, but it does not show up on your credit report like a bankruptcy does.  I know it is definitely not a very common thing, but it may be worth checking to see if your state has something similar.  I got in over my head (I could still make my payments, but it was ridiculous) and put about $9,000 worth of debt into it and am now paying $268 a month.  Much more manageable!  Your creditors may close your accounts and consider them to be chargeoffs, but they are not allowed to contact you anymore.  (sigh of relief)  I am so happy that someone mentioned it to me and am currently in the process of getting my credit mortgage-worthy!

FICO8 Scores as of 8/8/17: EQ-643 TU-644 EX-629
Current FICO8 Scores as of54/7/18: EQ-668 TU-651 EX-652
Current Mortgage Scores: EQ-681 TU-655 EX-648
Goal: all FICO8s above 700

Credit Card Lineup: Capital One Quiksilver One - $850, Torrid - $3,000, Wayfair - $7,100, Victoria's Secret - $2,000, Overstock - $5,150, Discover it - $9,500, Amazon Store Card - $200, Capital One Platinum - $3,000, Care Credt - $1,500
Message 8 of 9
Valued Contributor

Re: Debt Consolodation or Bankrupcy

Although I don't know your info such as income other assets etc I would strongly urge u to consider options other than BK. Debt consolidation would be an option. Possibly taking out a personal loan if u can get a decent APR is another option. Refi if u have equity?  All are better than BK 


AX Hilton Aspire 20k, AX Bonvoy Brilliant 15k, AX BCP 2k, AX Blue Bus Cash 15k, AX Delta Air Platinum 49k, (AU) AX Delta Gold 15k, AX Amazon Prime Bus 25k, BC Uber 29k, AKUSA FCU -10k , CITI AAdvantage Exec World Elite MC 16.5k, Discover (2) 16k, Kohls-4k, VS Comenity $3k, BofA AK Air Siggy 9.8k, WF Propel AX 5k, JCP $10k PFCU Plat Rewards Siggy 39.5k, PFCU Power Cash Rewards AX 10.5k, NFCU Flagship 50k, CLOC 15k, CITI Costco 9.5k, GAP VISA Synchrony $9k,Target MC 9k, Ulta MC Comenity 9k, Pay Pal 1k, CO Venture One 23k, US Bank Radisson Rewards Signature 10k, US Bank Fred Meyers World MC, 11k, US Bank Plat VISA 15.7k, VS Comenity 2k, 240k total available credit. Utiliz-2%, Current FICO EQ-724, EX 763,TU 802 ,Chapt 7 BK D/C 11-2012. Starting scores 520-550
Message 9 of 9
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.