Yes it's possible Navy could shut you down if they see your other accounts going down in flames. It's anyone's guess whether they actually *would.*
In my opinion though, if you're struggling, I'd contact all your creditors before letting all of your accounts go and see if they offer any sort of hardship program. I was in a similar situation 4 years ago, and I really wish I had done what I'm advising.
@Anonymous wrote:Thanks for the feedback - I had considered exploring the hardship road to see if there was anything that I could work out. Could (or would) Navy be able to do anything to the auto loan? I'm hoping not. I'm 1 year into a 6 yr term.
Auto loan is probably fine since it's secured credit backed by collateral which is the car.
@Anonymous wrote:Hi All -
I successfully began my credit rebuild in 2012 thanks in a large part to this community. My highest credit score was 745, and I kept that for around 9 years, until late last year. Well, now I'm back and pretty embarassed about it. I've bitten off way more than I can chew for a variety of reasons, and I've really made some dumb decisions. About a year ago, I took out a $26K consolidation loan from Upgrade @741051.7%/5 yr term. Around the same time, I took out a Navy Federal auto loan @ 2.29%/6 yr term. About 6 months ago, I was laid off. I was able to find a new job about 6 weeks later, but now I'm making 30% less than I was....now I've got balances on those same cards that I got the Upgrade loan for and paid off. Right around that time, both Amex and Barclays sent me notifications that my CL had been cut (Amex CL was $25K, cut to $4K; Barclays CL was $16K, cut to $4K.) I can't continue to pay even the minimum balances on my cards along with the Upgrade loan and still stay afloat. My credit is now hovering around 625-630. I have two Navy credit cards along with the auto loan. My question is: What if I default on the cards and the Upgrade loan? I know my credit will tank, but I can still pay the Navy cards and the Navy loan. Navy has been good to me, and I don't want to burn them. Will Navy cancel my cards if I decide to let the Amex/Barclays/Discover/Cap One cards go? I don't think Navy will do anything crazy to the auto loan as long as I continue to pay it? I owe $22K on the Upgrade loan, and a total of $21K on the other cards. Would like to hear thoughts about this - thanks in advance.
Whats is your annual income now to pay off 42,000 in debt.
Hmmmm. Debt matches income. Any chance to find employment like you used to have with all the hiring going on now? You know where I'm heading.
Your not alone. Seen many come on here take out loans to pay CC debt and then run up the same CC debt that led them to the first loan and now are in a tight place. I'll just put it this way. If you let all the accounts go as you posted and here come the CO's, collections and hopefully no legal teams. Theres 7yrs of the baddies on your reports. Or have a fresh start and add 3 yrs. In that time frame. Your siggy could look like mine in 6 yrs. I never say yes file. I just lay out the choices. Its hard to come up with a payment plan when the debt equals or is over the yearly income. You only live once. You realize now there was a better way to go after the loan. Wont happen again. But not much wiggle room to work with. And as a Medic. Stress does the body no good. Two sides to this dilenma. Choice is yours. Good Luck!