@phoenix12 wrote:
Hi all. It is hard to admit this, but I have sat down with my finances and really taken a look at everything, and I am just embarassed with how bad things have gotten. I have $50k in credit card debt, I lost my job a few months ago and sold my soul to high interest installment loans through OppLoans and NetCredit to make ends meet and paying close to $1200/month in payments. My credit card minimums are around $1800/month and I've been trying to pay more than the minimum as much as I can. I had to move back in with family, and they have been super supportive while I look for a job. I finally got one making around $50,000/year and they will bump me up to $60,000/year after I finish a certification program in the next 6 months. My net income after health insurance is around $3200/month. The problem is the payments are so much I have no money after paying it for my car note, groceries, gas, etc. I am grateful not to have to pay rent while staying with family but these notes are just eating me alive and I just get back to my maxed out cards afterwards because I have no money in my checking account to pay for things.
I thought about getting a personal loan and closing all my accounts after paying off the debt. I dont ever wanna be in this sitatuion again, and I dont even want the tempation I don't care if my credit takes a hit at this point from average age of accounts - it already is a 620 so bring it on. I saw through USAA and SoFi that if I consolidate I would be at around $1500-1600/month (which would be so much more doable given my job and new living situation) but I know I would likely need a cosigner for that. I did not know if there are banks out there (and if there are any recommendations that would be helpful) that would extend me a loan without a co-signer since I want to close my accounts anyway. I have even considered filing bankrupcty at this point, but I don't know with my job if I would qualify. I am embarrassed to ask my family member to cosign for me, this is not their burden. I just don't know how to navigate this situation anymore. Any suggestions on banks or should I not do the consolidation loan at all even with closing my accounts after?
I'm a little confused. You have $50k in credit card debt and $14k in debt to "OppLoans and NetCredit" (I'm not sure what those are, are they personal loans?).
Who do you owe and at what interest rates?
1.) Stop using your credit cards. Lock them away. I see at least 2 cards with AFs. Close those (if/when the balance is $0)
2.) Contact all creditors and see if they have a hardship program and can offer you reduced interest, X months at 0%, etc.
3.) Decrease expenses, increase income, and attack the debt avalanche style.
Good luck!
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