@Jumpman wrote:Hello Everyone,
I owe 47000 in Credit Card debt, spread across 10 cards. Long story, but I got divorced and have overused my cards as income.
If I were to let 2 cards go - Navy Federal 9700 and Fidelity Signature 9500, it would cut my debt to a point where I could afford to pay down the other cards. As it is now, I am swimming in place. I have ZERO lates, but I can't get a consolidation loan because I'm at 60% utilization. I keep paying the minimum amount and then the interest hits and I'm right back where I was before. Then I need gas and I put myself back in debt again.
So my choices are:
1. Keep grinding out paying down this crazy debt and spend about 10 years getting out.
2. Let 2 cards go and pay down the other 8 cards with reasonable payments.
3. Let everything go and take my chances with the collection agencies.
4. Sell my car and ebay the things I own and just get out of this mess. I maybe have 10 grand of things I can sell (tools, etc.).
I don't want to do any of this and I can't believe I have got this deep in a hole. Just don't know what to do at this point and I am having panic attacks every day, like a person drowning in shark infested waters and I can see a boat 1000 feet away, but the waves keep crashing over my heads (dramatic I know).
Thanks for your help and if you only have bad things to say, I probably deserve it for letting myself get so messed up.
I don't know that there's anyone that can claim to have never made mistakes in their life, so don't be too hard on yourself. I'm sure you've learned some valuable lessons through all this. I can't say that letting two cards (or any cards) go is a good strategy. What's likely to happen once you do is the remaining accounts you have are going to start balance chasing you with CLDs, all the while further wrecking your credit. Gambling with collections is also not a great idea as there is always the real possibility of legal actions and judgements to follow, not to mention a very long, hard road to getting back to where you need/want to be with your credit.
The best option may be to just rip the band-aid off by considering bankruptcy. Most BK attorneys give free consultations. It may be the best option for you to be free of your debt, start over with a clean slate and offer the fastest way to get back on your feet with much less stress in your life.
Having filed BK7 myself in 2014, I can say that its not the end of the world and looking back it was a wise choice. I became steadfast with discipline and rebuilt quickly. Mostly thanks to this forum. Some of what you listed for options are not ideal and as @JoeRockhead pointed out , you're likely going down a path of serious legal implications if you choose to let some cards go as you put it. Also, knowing what I know, NFCU would be the last card I would consider burning if you chose not to file BK.
If I'm in your shoes right now, I would consult a BK attorney and I would also consider paying down enough debt in an attempt to consolidate and allow you to breathe. Just know that either BK or Consolidation will require a total revamp of how you've been going about your financial life. With the divorce behind you, hopefully you can come out of this in a better place.
Welcome to the forum !
NFCU Visa 30k | NFCU Platinum 30k | Cap1 QS 12K | Cap1 QS 11.5K | Barclay MC 9k | Delta Gold Amex 30K | Discover IT 14K | CFNA FS 3200 | CareCredit 20k| Paypal Credit 5k |
I'll just say go with the fresh start. Put the divorce and the debt in the rear view mirror. Theres is life after BK. Thats why I stayed here to help others as the ole gang helped me recover. I pass on what I Iearned from them and worked for me. Just got to play it right afterwards.
