HELP! Amex Platinum closed with 25k balance

[Anonymous]

Hi, I wish I had found this forum a little sooner!  After a divorce and losing my job I was left with about 50k in credit card debt, with the majority on the Amex Platinum.  I had the card since 2006 and always paid my huge balances on time.  After they closed it last year I've since paid it down to about 25k but I can't keep up with the monthly minimum payments that are approx. $700.  With the ridic interest at about $400/month I don't know what to do and it feels like I'll never be able to pay this off.  I was trying to avoid a charge off but my credit score is already pretty bad at 630 and this is waking me up at night.  I have two Citi cards that are maxxed, a Chase Slate that's also maxxed and BofA that they closed with no reason given - even though I was never late.  That's another cluster of a story when BofA closed all my checking/savings and CC and said they can do that at any time without a reason.  Amex said if I paid the 25k they would give me back my Platinum card with a 6k limit, but I don't even want it back because I don't travel for work any longer.  I am just so buried in this debt and would appreciate ALL advice!   

[digitek]

Hi queen,

Glad you're here and spoke up about your issue.  You've come to the right place and you will get a lot of great support and info.

I can't be much help on this in particular because I don't have personal experience with it, just wanted to let you know that you're on the right path and you can get through it.  I've seen a lot worse situations on this board and over time they come out on top!

Have a kick ass day!

[JR_TX]

Hello ResaleQueen and welcome to myFICO!

I'm terribly sorry to hear that you're going through such a tough time right now. I really am feeling your pain as I went through the same thing back in 08-09 when I lost my job and went unemployed for a few years until I finally went into BK7! But don't you worry, it will seem hopeless and dire at the moment with no end on the horizon it may seem...
There is! And you will come out stronger than ever armed with so much wisdom and discipline that you will just be smiling at this ordeal someday.
Now onto your question... Are you still unemployed? If you have income, your best bet is to go into debt consolidation and combine all your debts into one manageable monthly payment. Don't get into anymore additional debt as it will just further bury you deeper. Now, if you're still unemployed without source of income or not sufficient enough that your only means of survival is to borrow again, then I guess it might be a good time to look into filing bankruptcy. Consult a lawyer which BK is right for you either Chapter 13 or 7 as the your lawyer might deem fit.
Hang in there and keep the faith... Keep your head up as everyone and I mean every single one of us goes through a rough patch sometime in our lives. I wish you all the best!

[kberly69]

Is it possible to call your creditors and work out payment plans? They will likely want to do automatic debits from your account and of course, only you know if this would be affordable or doable. I found myself in a similar situation following a divorce and ended up filing Chapter 7. I filed pro se and it was a very good decision for me. It's only gotten better and brighter since then and other than not being able to get some cards (which I don't need since I have been able to get plenty of other decent cards within my first year following discharge) and having to wait a bit before I can purchase a home, it's been a relief and I'm better and more knowledgeable for it. 

[kberly69]

I'd also strongly recommend if you decide BK is right for you and you are eligible for Chapter 7, buy and study the NOLO book How to File for Chapter 7 Bankruptcy (pretty sure they have a Chapter 13 book too). Even if you go with an attorney, being an informed client and an active part of your financial recovery is incredibly important IMO. 

[Anonymous]

I don't have recommendations but don't make yourself sick over this.  Like others have said Bankruptcy and Debt Consolidation are options.  Do what is best for you.  Most of people on this board and have run into problems in the past and even with the worst charge-offs and bankruptcy your credit eventally improves.  

Good luck. 

[Anonymous]

TY! I already feel better because posting on this forum has been on my to-do list for a long time!

[Anonymous]

Thank u - I've been trying to figure out if BK or debt consolidation is better for me.  I've been reading on here as much as possible but it's hard bc everyone's situation is a little different.  Do you or anyone know which is worse for your credit?

[Anonymous]

I ended up consolidated about $15,000 in debt and while it hit my score and dropped it, it wasn't horrible. They did close all of my accounts and I was unable to open anything new for about 3 years. With BK, I feel like it will probably hit your scores worse, but it's an option that has helped quite a few. I wish you luck with whatever choice you make!

[Anonymous]

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@Anonymous wrote:

Thank u - I've been trying to figure out if BK or debt consolidation is better for me.  I've been reading on here as much as possible but it's hard bc everyone's situation is a little different.  Do you or anyone know which is worse for your credit?

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I don't have personal experience with either, but I would say don't worry about which will hit your credit worse. Both will damage your credit, but you can also recover from either. Talk to some experts, and decide which is better for your finances. Once you have made that decision, head to the rebuilding section of the forum for the best advice on your recovery. Best of luck!