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Self-Inflicted Credit Destruction - Need some serious advice

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Established Member

Re: Self-Inflicted Credit Destruction - Need some serious advice

The good thing out of this as previous posters have mentioned you came to the right place for help, there are plenty of people here that can provide advice or just support you along the way to recovery. We have all had issues with credit and the good thing is you’ve taken the first step and realized you made mistakes and want to learn from it. Things happen if they didn’t this forum would not be as helpful as it is we all come from different walks of life here but we are all here for the same goal we live and we learn and we are all here to help in any way you can , sorry about what happened and if you need our help this is the place.
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Message 11 of 29
Regular Contributor

Re: Self-Inflicted Credit Destruction - Need some serious advice

I agree, bankruptcy is your best option - you're young, and after a few years you can start rebuilding your credit.  By the time you're in your mid-30's this will be an unhappy memory.

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Message 12 of 29
Established Member

Re: Self-Inflicted Credit Destruction - Need some serious advice

Sorry to hear about this situation! I know how stressful it can be, similar thing happened to me (lost job, buried in credit debt, etc.) around the same age. Good news is it does get better. 

 

I agree with what other have said, if you have no means of paying back the debt, it is best to declare bankruptcy. Did you have car insurance in your accident? Can you get any sort of reimbursement from the insurance company?

 

Also, don't want to add to the stress, but I would prioritize AmEx (even if you haven't heard from them). They were the one company that did sue me (Chase, Citibank, and Capital One did not). 

Message 13 of 29
New Visitor

Re: Self-Inflicted Credit Destruction - Need some serious advice

I just made an account after reading your story. 

 

It almost sounds like EXACTLY what I went through. I was 26.

 

My wife and I were working, no kids, and a new house. Things were fantastic. I had awesome credit limits and wasn't even trying to build my credit. New card offer in the mail? SURE! Hardly used the cards, mainly just put fun toys on them. Got a slight salary increase and financed myself an older Porsche. Don't feel like cooking? We have money in the bank, let's go out for dinner a few nights a week. Life was great.

 

Life smacked me in the face. I ended up at the hospital in the ICU for 3 days. My job situation started falling apart. I slumped into depression. My income was terrible. Bills piled up and my depression lead me to just ignore all the calls. My marriage was falling apart due to all of this. I was embarrassed to talk to anyone about it.... and was even hiding how bad it was from my own wife. I was so so so close to foreclosure on my home I had paid for 3 years on time.

I knew bankruptcy was my only option, but that was a bad word. Finally met with a BK lawyer. Wow...... was refreshing. I was so far in debt and had no possible way to catch up without wiping the slate clean (companies had started legal proceedings). It was stressful to go through, but I was finally facing the issue in some way. Mind you.... I spent every last dollar I had at the time on my attourney fee. I was in a bad place.

 

Wiped the slate clean. Was a burden off of my chest that let me get my life in order instead of hiding from it. I cannot give you legal advice, but I can tell you that this was a solution for me. Got back on track. Was happy again. Successfully working and being very frugal. 5 years later, STILL very happy and living the life I want. Learned a hard lesson and the whole BK process kicked me in the face. I knew I never wanted to do that again. 

 

I have a degree in financial investment analysis and even worked as a financial advisor.......... It can happen to the best of us. I was young and dumb. 

Message 14 of 29
Community Leader
Super Contributor

Re: Self-Inflicted Credit Destruction - Need some serious advice

You can do thisSmiley Happy Many of us have been through BK and have come out wiser and have learned the hard way credit isnt easy but when done right can be fulfilling. Best of luck on your upcoming journeySmiley Happy
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Message 15 of 29
Regular Contributor

Re: Self-Inflicted Credit Destruction - Need some serious advice

I really appreciate all the kind and considerate responses I've received on this post.

 

I'd like to update everyone, as I've decided to forgo pursuing bankruptcy for the time being. I am not actively being pursued by the multitude of collectors that I owe. And, after consultation with friends and family, they've suggested I wait a little longer, and really consider if that's the route I'd like to take. 

 

I've also cancelled Lexington Law. I saw no improvement from this service, and do not recommend it to any individual out there in a position of my nature, of even better off. They are merely collecting on your monthly sub fee, and are not actively or professionally doing anything to truly heal your credit. 

 

My scores are as follows at this point: TU: 450 | EX: 540 | EQ: 455

I've seen very marginal improvement over the past few months. I finally got caught up on my car payment, and saw a very small bump as a result. And, I feel somewhat confident that this will turn into timely payment history, which might help my case in the long term, for the duration of the loan (only about a year left)

 

I was advised to attempt getting a secured card. However, this did not pan out well for me. I think because my scores are so abysmal, and because a couple of the card recommendations were for companies I had burned in my financal hardship, I don't see this being an option for a while. But, I did try. I haven't tried any sub prime cards (secured or otherwise) at this point, as I'm afraid this might not be the most financially sound way to go.

 

I've since started a process of scrubbing my credit report to ensure everything on it is accurate. And, from here, I think what I'd like to try is contact a company called Greenpath to actually establish a plan to repay these old debts, and potentially have them removed as a result. I've seen others who've had success with this. My only concern is that it's a financial undertaking I'm not equipped to handle presently. My income has increased monmentally from where it was at the start of the year. However, it's still not up to par with what I owe. But, I don't think a consultation with them will hurt. And, once I begin to make an honest effort to re-establish my financial health, and a relationship with these burned companies, I feel I'll see improvement.

 

Side note: I absolutely love these forums. And, I always have. This community is amazing.

1/14/19 - TU: 457 | EX: 403 | EQ: 458
Message 16 of 29
Frequent Contributor

Re: Self-Inflicted Credit Destruction - Need some serious advice


@Dhar33 wrote:

I'd like to update everyone, as I've decided to forgo pursuing bankruptcy for the time being. I am not actively being pursued by the multitude of collectors that I owe. And, after consultation with friends and family, they've suggested I wait a little longer, and really consider if that's the route I'd like to take. 

 


Your decision is to be respected, as it is yours to make, but I would like to ask if you ever did speak with a bankruptcy attorney? Friends and family may want to do what's best for you, but are they qualified to give you expert advice, or face the consequences that may arise from their advice? Chances are if they gave bad advice you will be the only one who suffers because of it, not them.

 

If you had auto problems you wouldnt hire an interior decorator to fix it; you would ask a mechanic. If you have not done so, I would still ask the advice of a professional attorney that knows the law & explain to you the pros & cons of either decision. GL!



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Message 17 of 29
Regular Contributor

Re: Self-Inflicted Credit Destruction - Need some serious advice

Regarding secured cards, have you tried OpenSky secured or Green Dot secured? I have a Green Dot Platinum and was approved when I (at the time) had a MASSIVE debt and was 90 days late. Both OpenSky and Green Dot do not do a credit pull. You just fill in your income and your rent amount (if memory serves). Give them a shot. They both report to the credit bureaus. Green Dot reported straight away for me.

 

I wish you well and would suggest that unless your income continues to improve so you can feasibly tackle these debts on your own, to consult a bankruptcy attorney. It can't hurt to just talk to one. You may later regret waiting longer before you do something.


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Message 18 of 29
Regular Contributor

Re: Self-Inflicted Credit Destruction - Need some serious advice

Thank you for the advice. I will look into these two, as it would be really nice for someone to give me a chance to build my financial and credit health back up. I've never actually heard too much about Green Dot, though Open Sky seems like a very popular suggestion for those who can't qualify for other secured options.

 

Regarding contacting a bankruptcy attorney, I just don't know if bankruptcy is something I'm ready to commit to. However, as you guys have stated, it wouldn't hurt to consult with one, if nothing but for the opportunity to educate myself. I think I might just call and get some information, and see if it's something a professional would advise.

 

Thank you guys, again! 

1/14/19 - TU: 457 | EX: 403 | EQ: 458
Message 19 of 29
Valued Contributor

Re: Self-Inflicted Credit Destruction - Need some serious advice


@Dhar33 wrote:

 

 

This whole downslide started around the time I was hit by a commercial vehicle in Las Vegas. I was doing real estate at the time, and wasn't able to work for a while.

 

 


At the time this happened, did you have legal representation?

Were you employed or self employed? In addition to possibly seeking a BK attorney, I would look for another attorney to review your initial accident to see if you have any course of action still open to you now.




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>06/2019 CCT EX 829 TU 848 EQ 837
Thus will it come to pass. The Dying Leader will know the truth of the Opera House. The missing Three will give you the Five, who've come from the Home of the Thirteenth. You are the Harbinger of Death, Kara Thrace. You will lead them all to their End. End of line.
Message 20 of 29
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