INSANE Credit Card Debt = Need Advice?

[odjohnson3]

The way I paid off the same amount of debt was to obtain a line of credit and use that to pay off one thing at a time....If ur given a small amount jus utilize that and pay it back off....eventually they will give u an option to increase the limit...when they do, max it out paying another bill off...and so on and so on....

For daily living expenses, you can reuse a portion of the money you pay towards your line of credit...this method a lot of people are calling velocity banking...it worked for me, im sure itll work for you too....

[Anonymous]

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@Anonymous wrote:

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Would they have listened if we told them?  Really credit cards other than to rent cars really serve no purpose.  I mean the whole credit card industry is meant to get people hopelessly in debt.  Other than us churners who actually benefits from having them? 

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This is the gospel truth!

[Anonymous]

When I had two cards go to collections back in the late 90’s what saved me was maintaining my car note and being in a credit union. I had direct deposit from my employer which helped and they gave me a unsecured loan of $4500 to pay off one of the collections. . Once that was paid I got another cash loan to pay off the second. Having payed $9K over a period of three years and maintaining my car note my score was in the 660’s. Join a credit union man!

[Anonymous]

Selling their car probably isn't good advice either. People need their car to get to work. Most likely if they are in serious credit card debt they probably put zero down on their car, got a bad deal, high interest, and got a long term loan. They are probably way upside down on their loan.

[Anonymous]

I'm not suggesting OP, or anyone else do this method, BUT - when I was around the OP's age I did a "self-imposed bankruptcy". Cheaper than a CH 13 or CH 7 but there's also a little less morality involved.  Juss' sayyyin'....

[Strogen]

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@Anonymous wrote:

I'm not suggesting OP, or anyone else do this method, BUT - when I was around the OP's age I did a "self-imposed bankruptcy". Cheaper than a CH 13 or CH 7 but there's also a little less morality involved.  Juss' sayyyin'....

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I agree with this, based on the facts presented. I just dont see it being reasonable or really, possible at all to pay off that debt given his income. There is no way he can afford every monthly payment + interest. It is literally impossible for OP to pay the debt off as it sits. The interest on 38k CC debt is too much considering his low income. We dont even know if thats before or after tax.... 

I have a friend that did this a few years ago, his credit is ruined of course and he lives cash/debt only now. But thats the punishment one gets for such things and probably a good thing as he still spends all his money on stupid crap like phone games.  

 The thing with credit is, once you back yourself into a corner with maxed or nearly maxed cards. You're done. No one will lend you a penny. Especially if your debt on credit is more than your annual income. You cant let this happen. 

[LionLaw]

It looks like the OP is long gone, and probably for good reason.  This board has a lot of great advice about a lot of different topics, but debt management isn't one of them.

There's no easy way out of a debt hole like that.  Serious lifestyle changes and debt snowballing are the only way out.  He might be able to lower his DTI a little bit with some personal loans, but the difference won't be significant.

Stories like this do make for good reminders for the CC hunters on here.  A large credit card portfolio can be a valuable financial tool, but it can also be destructive if used improperly.  I have gotten good about sticking to a budget and paying in full every month; that being said, I still use my Amex PRG for almost everything, in part because it helps keep me honest.