Financial Advice Needed

How much are your monthly expenses, and on what? Can you live off $2500 a month? Those are near poverty-level wages.

Short of finding a new job that pays double your existing one, selling a kidney, or winning the lottery, I think you're fucked.

Can’t really answer that comprehensively without a lot more information, ie, monthly expenses for one. Without more info, you can either pay it off or file bankruptcy, or wreck your credit. Stop using the card, and always make more than the minimum payment.

Monthly expenses...

Car - $347.37

Auto Insurance - $135

Phone - $84

Internet - $99

Gym/Streaming/Memberships - $170

Electricity - $200

Water/Trash - $75

You don't eat?

r3 do you ever go out? Buy Starbucks? Clothing?

$99 internet I'm guessing means you live in the midwest, where the cable companies have ridiculous monopolies.

Op, I filed for bankruptcy in 2009 with $70,000 in debt. My business went to shit when the housing market collapsed. After the bankruptcy, I applied for a secured credit card. I got one with a $500 limit. Payed all my bills on time, almost always the day i get them. Kept applying for card offers i got and built up my credit over the years. My current credit score is 814.

Wait a year, inflation will fix it.

I love hearing redemptive stories like r6.

[quote] Can you live off $2500 a month? Those are near poverty-level wages.

Only to a spoiled New Yorker.

I've never filed for bankruptcy.

I only eat out once a week and eat very cheaply during the week. I'm on a strict diet so most of my grocery bill is for wraps and produce.

I'd estimate $200 for a month's worth of food.

I clothes shop at Target. I work in a warehouse so no need to impress.

Surgery. Liposuction on the stomach and hips... bum lift, tit lift, lose a rib.

OP, if you're already paying the minimums on the credit cards, consolidate them with a personal loan. I was in a similar situation once and consolidated several credit card balances into a single payment, with a 6.99% APR. Discover offers these loans with no origination fees, though I think your credit score would have to be above 780 to get the lowest APR they offer.

OP what about rent or mortgage? You pay zero for that?

Cancel internet and memberships and put that extra $269 on your card payment each month.

Suicide

r15 Op, how old are you ? Do you not pay for your rent ?

How is your phone bill $84 a month? I pay $15 for mine (MintMobile).

Obviously gym and streaming accounts can be cancelled too.

Is your house paid off?

I’m guessing OP lives with a family member.

Good for you, Op. you can do this.

Your monthly expenses leave you with $1400 leftover a month.

Go on a spending freeze. Create a financial plan in writing so you know exactly when your debt will be paid off. Consider a loan with a lower interest rate or request a lower interest rate from credit card company. Cancel all memberships. Take up running or exercise for free with online workouts. You should be able to debt free in 24 months.

Get a side hustle. Work at the gym on weekends for extra money and a free gym membership. It’s only for a couple years. You can do this.

You answered your own question, #12. He can't get a loan with that kind of credit balance/poor FICO score.

I'm wondering why hackers haven't erased all loans/credit card balances? Why don't they ever do something constructive?

r9 I live in the midwest, thank you ;-) $2500/mo would be barely livable if he had to pay for his own rent.

First, lock the credit card so you can't add anything more to it. Save a few months' worth of money so you have a couple thousand in the bank as a cushion, then start paying $1000 a month on the card. It will take a number of years but eventually it will come down.

And see if the card company will work with your rate and lower it. You didn't tell us how much the credit card company was charging you (APR). I'm guessing since your credit is low, it's probably in the 14-19% interest range. You can usually ask them every six months to lower your rate, but you have to call them.

Additionally, CHANGE PHONE PLANS. $84 a month is ridiculous. Switch to Google Fi or the Walmart plan that's $30 a month.

You might look to see if Consumer Credit Counseling still exists. Many years ago they helped me.

Stop paying it. Wait until they offer to settle. By then, make sure to have some cash saved for settlements.

You can kiss your credit goodbye but you shouldn’t have any credit until you get your act together.

Tithe to the church. Jesus will get you out of debt.

I think OP is looking for some secret to paying the debt off, but there isn't. If you don't want to destroy your credit, you'll have to pay it off, it will be slow and painful and will take a long while without some interjection of a large amount of cash at some point.

If you can I suggest working side jobs and extra gigs or contracting, depending on your skill set, and putting all that money against the credit card. The more you get it down faster, the less interest you'll have to pay in the long run. Look for Christmas-season gigs in your area.

$500/mo is a lot for a car in my mind. If you have a warehouse job you need a car, but is selling yours and buying something cheaper but still reliable feasible?

Electric at $200? Seems high, especially if you don't work at home. A thermostat controllable on a phone app maybe? (Guessing here, it may not be a solution for you(

Phone/Internet $200. That seems 2x what it should be. Google Fi is great for phone as someone suggested, at about $25. Find a way to cut the internet?

The gym/memberships/streaming $170. I would scrap all of that but for maybe one paid streaming service Use Netflix and whatever free shit you find, for instance. And exercise at home with YouTube or something free.

Do you just have one credit card? If you've more than one it's very important to load payments toward the ones with the highest interest rates and knock the off one at a time in that order.

At the end of this period of discipline is a feeling of enormous relief that stays with you. Not owing anyone any money changes everything

Gofundme. Onlyfans. Theft.

[quote]OP what about rent or mortgage? You pay zero for that?

My mom passed away and I inherited the home. I claim zero on my taxes so when I get a refund it covers my annual property taxes.

My car, 2013 Camry will be paid off in July of next year.

Oops, r28 is me.

Be careful of the second job idea. Taxes can eat up the gain you’re trying to get and you’ve worn yourself out for very little return.

What is a credit card?

Combine your phone and internet and see if you can get a cheaper plan using a hotspot or go with GoogleFi.

It's incredibly hard to live without internet these days, even the government recognizes that by providing for cheap internet plans in many cities for people who don't have it at home or offering a subsidy if you qualify.

Work out at home and you don't need every streaming service all the time. If there's something on you like, order it. Once you watch all the episodes, get rid of it. Let the shows pile up and go on a binging spree every few months. Or just don't get Netflix and go with one of the Hulu bundles which are cheaper than Netflix and you get 3 streaming services in one. More bang for your buck and still cheaper than going to the movies.

sell your house. but dont waste the money you acquire, this time.

Google: consumer credit counseling

They can really help. I tried to provide a link but my post wouldn’t save.

Don't sell your house. Rent out the rooms. Or rent out the house and go rent a room somewhere else. Once you pay off your card, move back into your house.

I filed bankruptcy in 2006, and it was the best thing I ever did. My credit score is now over 800. I had two family members in hospitals in different cities and was driving back and forth and knew I could not work a job. I had to get rid of CC payments that were on debt that I had charged up to around 40K.

I consulted a bankruptcy attorney first.

Just FYI:

Debt Consolidation Payback Companies are a scam. These companies are owned by the credit card companies, so they can get something back and it's not a total loss for them. In the long run, they trash your credit score when you sign up with them, you spend 5 years making payments to them, and once you pay off your debt, they trash your credit for another 7 years.

If you file bankruptcy, you clear your debt AND the ding on your credit is only 7 years,

7 years, vs. 12 years of shitty credit scores.

There are bankruptcy books written about the scam of Credit Consolidation.

[quote] Auto Insurance - $135

Seems high for an older Camry. I would find out what the statutory requirements are for car insurance. Reconsider everything other than the statutory requirements.

[quote] Phone - $84

Seems a little high. I'd shop around.

[quote] Internet - $99

Seems a little high. Does this include cable channels? If so, I'd cut out the cable channels and pay for internet, only.

[quote] Gym/Streaming/Memberships - $170

Sorry, OP, this seems silly to me. Cut all of this from your budget.

Dont listen to this idiot at r33, OP.

Never sell your house.

Please r9. 2500 take home is about 15 bucks an hour if you work full time. It's not a lot of money in ANY part of the country.

can you rent out a part of your home?

R37 here. I am not recommending going cheap on car insurance. Not at all. I am a believer in insurance. However, for years, I bought car insurance from a family member who sold insurance through a major insurance company. When this family member retired, I looked at each item I was paying for and realized I was paying for some weird shit like "alternative healing." I always assumed that was for chiropractic care; it wasn't.

People can obsess over debt too much.. Dying with credit card debt isn't the end of the world, but with that much debt just making the minimum payments would eat up all your very limited income.

I agree with those saying just declare bankruptcy. It will be painful, but worth it in the end.

I was once had debt of almost 50K in CC. Good thing was my take home is about double of you OP. I was also always transferring my CC balance to those with introductory of 0% APR . Also learned to live cheaply during that period. Another advice is maybe get a second job, even part-time. You need to increase your cash inflow.

Tell us what you bought for 35k, doll.

really, how was that much allowed with their income? spill the beans, op!

OP, can I ask how you got this far in debt?

I accumulated debt through gambling - $20,000. I’ve told my story before. It took me time to aggressively pay it off. I know how stressful money problems can be.

I’d recommend Dave Ramsey. He was helpful for me. Yes, he’s a religious conservative, but he doesn’t spout that stuff all of the time. Take what is helpful to you and ignore the rest. He has a podcast that’s good.

You can do this, but you’ll need to make changes. Best of luck!

R45 I make $42k and I have credit cards with a combined total available credit of $65k. I lthink I have $1k that I split between them and keep monthly payments going. I’ve been in the US about 5 years as a spousal immigrant. The credit in this county is ridiculous and a lot of people get into trouble. FYI my credit score is 796.

Yeah, you don't have to make a ton of money to get high limits on credit cards. Credit card companies want people to get into a lot of debt and spend your life making payments to them.

immigrant in your inherited mom's house in the us.

yeah.

Bankruptcy. And go back to school to learn a viable trade.

R49 rubbish. My family have no ties to the US. I just did my due diligence on credit scores in the US before immigrating. It’s not that hard. I don’t know why you feel the need to insult me but anyway.

R39, $2500 take home a month is more like $25 an hour, which means OP makes around $40,000. I wouldn't call that poverty. Sadly, it's better than a lot of other people.

OP,

1) Agreed that this will require some sacrifice and frugality on your part. For that much debt on that much take home, you're realistically looking at a 5 year horizon (minimum) for getting your balances paid in full.

2) There are different types of credit card consolidation. There are companies out there who can work with your credit card companies to reduce your interest rates without impacting your credit score. This is what's likely keeping you in a cycle of debt. You're probably paying some cards with 15-20% interest rates, if not more. They can cut it down to less than 5% for most (not all) credit cards. This move alone will make your payments go farther.

They do require a monthly service fee ($less than 50). And you would have to close all your accounts to work with them.

Still, most people in your shoes will likely not have the ability to navigate this process on your own (finding 0% credit card balance transfers, switching balances from one card to another, etc. Besides you probably will not find any credit card company who'll extend you $500 in new credit at this point, much less a 0% balance transfer offer).

3) Bankruptcy might be an option for you as well, considering you likely won't be shopping for a house any time soon. However, your car may need to be replaced before the end of your 7 year credit score ding, so that may impact your ability to get the best deals.

Still, someone in your shoes likely won't need an excellent credit rating, so I wouldn't worry about your score.

You should go through basic credit counseling, however. Unfortunately most low-income workers are the most susceptible to credit card debt and unless your wages increase significantly, it will only take one major life disruption to get you right back where you started.

Given that minimum wage is $7.25 an hour in much of the country, I'd say OP's take home pay isn't bad at all. And with a paid-off house, he's not in bad shape financially compared to most people. He just needs to get his spending under control bit. Best of luck!

OP the only expense (and greatest probably) is missing from your budget.

How much do you pay in CC payments each month? And I assume you're just paying the "minimum due"?

Pretty sure bankruptcy is on ur credit report 10 yrs

Op you are making 15 dollars an hour in a job market where 20-25 can easily be had even by nonskilled people. So work on finding a higher paying job but in the meantime. Is this a single credit card or multiple? Either way call the credit card companies and tell them you are having a hard time paying them off. Believe it or not they will work with you, maybe lower your interest rate or possibly give you zero percent for a year to help pay it down.

Now on to your expenses -

Car - $347.37

Auto Insurance - $135

Phone - $84

Internet - $99

Gym/Streaming/Memberships - $170

Electricity - $200

Water/Trash - $75

Your car insurance is high - 135 a month? Do you have tickets/accidents?? - Shop for new insurnance rates. Try Progressive or Geico.

Phone - do you mean cell phone? Look at Mint You can get a years service for 300/year

Internet - again shop around you might be limited but talk to your provider about a new deal. I re-negotiate mine every 1-2 years when they try to up it because I can swtich easily.

Gym - work out at home. Run, situps. A gym membership is a luxury you can't afford Streaming - Okay pick one or two. If you want TV try Philo only 20 a month for a bunch of good TV channels and onine DVR. Then netflix or hbo or what ever other ONE you want.

Electricity. Check your rates. I switched to a third party provider who locked a per KWh rate in and will give me a 50 dollar visa card every year. My electrictiy dropped from 300 in a month to 124.00

Basically look everywhere to cut cut cut. Never pay just the minimum on your credit cards and work to get them down to zero -

Mine was 7 to 8 years. The credit unions like to fuck with people who have filed. You can try and cause a stink about it, because it's against the law, but I just waited for it to disappear. Where it appears is on Background Check sites, which infuriates me.

Actually OP if you own your home, now is the best time to sell, probably in decades. Then you'd need to rent for awhile before you could buy something different, maybe in a year and a half when the prices come down.

I can't believe people are trying to get OP to sell. He is in a magical place where he owns a paid off property. That is his savior in life, he'd be screwed without that.

Or, you could find a partner, someone who makes more money than you ;-)

r60 only if you're irresponsible. He has BEEN irresponsible, but it doesn't mean he will be in the future. Obviously compare pricing beforehand and you'd have to be careful with the money in the meantime until you bought again.

Why sell? Why not just take a HELOC out and pay it off?

Nevermind, OP will take out $100k and lose the house.

Don't touch the house, OP. You will regret it.

Who knows what the house is worth? If its worth 300+grand in this bubble, it might make sense to sell. Who knows how old OP is?

Yeah, I don't understand all the advice to sell a house that seems like it's paid-off.

My advice would be: don't use the house as collateral for anything. Do *not* take out an equity loan. I have a friend whose parents gave him a piece of real property. He and his partner take out equity loans, every month, just to live on. My friend was actually good with money until he married his partner.

OP = How are your people skills?...Are you good with your mouth?....I know a job you can make 200 dollars an hour.

Find a reputable bankruptcy lawyer. File chapter 7 if eligible. Don't get a secured credit card. Or any credit card. Ever again.

r53 what companies cut APRs to less than 5%?

American Consumer Credit Counseling says they have a 10% APR agreement with Chase and 9.9 with Citi. You have to close the cards, and you pay ACCC a monthly amount that they split among your cards and expect to pay it off in 3-5 years. Several DLers in the past have recommended this company and they have very good reviews. It is not the debt consolidation or scam companies, this one is non-profit, charges $39 set up fee, and $5/month per card they manage for you.

There are other companies that will do the same without you having to close your accounts (which will fuck your length of credit history).

1. OnlyFans

2. Chaturbate

3. Rentmen.com

4. sugar daddy

r68 - what are the names of the companies?

R53 Consolidated Credit. I just checked a spreadsheet I created for my partner when I "nudged" him to tackle his credit card debt. I misspoke, most of his rates went to 5-7% (only one went below 5%). Felt like all of them went below 5% because his previous rates were 17.99% - 28.99%. Crazy.

The only card they couldn't get a lower APR with was Discover at 9.9%.

Consolidated had a similar set up fee and a $39 monthly fee. Folks will argue you can do without paying them this fee but it was a streamlined process that I doubt would have resulted in similar interest rate reductions. Plus, they make you pay via automatic checking withdrawals.

For those struggling with debt, their services really do make it easier to lower interest rates and stay on time with consistent payments.

A service like them could help out someone in OP's position.

Thanks, I'll call to see what they say vs ACCC's rates of 9.9 and 10 for Citi/Chase.

I filed for bankruptcy for similar reasons. Cut to ten years later, it's about to be wiped off my account, I moved into a new job path, in a relationship, moving towards home ownership. You don't owe credit card companies anything, it's all a big lottery. If Trump can be president, you deserve a fresh start.

Declare bankruptcy. No joke. You're wasting money paying interest like that.

Trade streaming credentials with a friend or relative -- you pay for HBO and they pay for Netflix or whatever. Use the free channels like Pluto and Tubi.

I'm not sure canceling the gym is a good idea if you're actually using it several times a week. Maybe find a cheaper gym, though.

You can sign up on Gridspace Mixer to help train AI by pretending to be a customer or CSR a couple hours a month (an extra $20-40 a month for pretty much nothing).

Every drop in the bucket helps.

[quote] Every drop in the bucket helps.

That's why I raised my monthly price on OnlyFans.

1. Accept that there is no way you're going to come out of this with your credit score intact. While there are gradations and some small number of companies view chargeoffs that are paid vs. unpaid differently, the vast majority will stop after seeing the deliquency and chargeoff. As a practical matter, don't try to negotiate to salvage some semblance of your credit. If you want to negotiate and pay, do so as a personal ethical stance, not because you think it will help.

2. To you, it may seem like it's a single monolithic "debt" you owe. However, each company will have different policies geared toward helping people (or not). You need to contact each company individually to see if they'll work with you.

3. Debt consolidation companies who "help" with your credit are ripoffs. They skim a portion of the money you're paying as their payment - it's that much less money going toward debt.

4. Bankruptcy may be a solution. However, it's not a silver bullet. You need to get actual advice that is specific to your situation and debts before you decide to do it. Remember, that bankruptcy lawyers make their money from their clients filing bankruptcy - they have an incentive to get you to file. Speak to non-profit counselors who an give you a consumer's view of the pros and cons.

5. From renting cars and reserving hotel rooms to surcharges for signing up for electricity and renting an apartment, having bad credit is miserable. Be certain to develop a plan to rebuild your credit as soon as possible.

A $200 electric bill? Do you use klieg lights?

OP = Take a loan out on your house. You can use the money to pay down your high interest credit cards. You will be so glad you did. LINK = Funny Video someone did of Tom Selleck and Reverse Mortgage...LoL

Is your credit at least decent?

A GREAT way to pay it off is to keep on transferring balance to 0% interest cards - there's all sorts of cards offering 0% for 12-18 months. The transfer fee is nothing compared to the interest saved. I had a friend do that and she paid off like 27k.

Of course the challenge is not to use the cards beyond that and run up additional debt.

Being a worrier, I'd worry about owning that house, which could suddenly produce big bills you've got no savings to pay. Like the furnace goes out.

If I were you I'd get a nighttime and weekend job if I really wanted to pay off that credit card. Maybe find a new higher paying daytime job. In most of the country this is a good time to be looking for work. Or threatening to switch jobs.

My credit score is listed as "fair". I don't have any credit cards, I live very sparingly. Keep enough food on the table, and my rent inlcudes all utilities except for phone & internet & TV. As an eldergay, I'm not running out spending wildly on things that I do like but treat myself every once in a very long while to a book or cd or dvd.

I'm getting the impression that having a credit card (which gets offered to me - "You're approved!") would raise my score to "Good". Yet I don't want to use the credit card because I'd rather pay for something right up front.

Is this an okay place to be?

R82 The advantage of having credit quickly available is that sometimes despite your best efforts something happens and you suddenly need more cash than you have at hand.

There are also some transactions --like renting cars -- which become a lot easier if you have a major credit not debit card.

I'm all for frugality. But at some point, why not poor that energy into getting an additional or altogether new source of income. So many ways to work a few hours here and there, from home and make a nice chunk of change. You sound like doing the bare minimum is your plan. But your credit card debt is an indicator that you could use a bit more money. In short, get off your ass.

OP = I have always found that low morals and rich men can solve almost any financial problem. I own my house and my car. Feel free to use my experience to hopefully make your own life better. You're welcome.

Go to a United Way consumer credit counseling agency. They will tell you to bring all your credit card statements. They will contact the creditors who will drop your annual finance charge rate to about 1.75%, and consolidate your debts. You will send your monthly payment to the consumer credit counseling agency which will, in turn, pay your creditors. You can pay off your debt in five years or less.

Become a cat sitter! Charge $20/day, or even $15, as long as you pay it all towards your debt. It won't hurt, you'll have cats to play with or chase around and at least a few hundred extra a month can go against your debt. Ask around!

DON'T sell your house whatever you do, OP. As someone said upthread, you could rent a room out, or even two, provided you can tolerate constant company. I can't, but I do rent out my garage, which is easy money.

OP = R89 is WRONG!!....If you rent out your rooms you will have people move in--pay you for ONE month--never pay you again---then NEVER leave until you evict them 4+ months later.. Some people do that over and over again. You are not qualified to just rent out rooms. You will get preyed upon. Go watch any court show of a deadbeat tenant. Some scammers tenants will get a protection order against YOU and YOU will have to move out of your own home. I see this all the time on court shows. Do NOT rent out your rooms.

Dolly Parton figured out that the money was in owning the song copyrights. Plus, she was a talented and apparently disciplined song writer (I Will Always Love You).

This seems analogous to what Oprah learned, early on, from Roger Ebert. I.e., own the rights to a product.

Sorry, wrong thread.

Plus you'll probably need additional insurance and have to worry about taxes.

Not to say it's absolutely a bad idea but as pointed out here before if you're going to be a landlord you need to have a certain personality.

OP, How old are you?

R93 Think Norman Fell in The Graduate.

OP the monthly expenses you listed add up to $1311/mo including your $200 estimate for food. You have no rent or mortgage. Your monthly take home pay is $2500 which means you have an extra $1189/mo to pay down debt or add to savings. If you keep your expenses in line with what they are now and pay that $1189/mo towards credit card debt paydown, your balance would be paid in full in about 3.25 years assuming the interest rate is 15%. If it's lower than that, it would be paid off sooner.

OP, I had $58K in credit card debt x3 years ago. (Much of it was me overspending and supporting my ex, but I was also paying for caretaking expenses for a friend my age who had a stroke in Palm Springs.)

I continued getting offers in the mail to consolidate my debt; I was adamant that I did not want to file for bankruptcy. I've been consolidating the debt for x3 years with a law firm out of Jacksonville, FL and they handle everything (the lawsuits, court dates, etc). In the end I'll save about $20K. It's all about being able to trust someone to negotiate the settlements for you.

And that's what I pay them to do...I make about the same as you and chose a payment plan where I pay $850/month. I'll be done with the whole process in 16 months. I've never missed a payment. (Many clients did over quarantine, according to the contact I have at the law firm.) So all that has worked in my favour; I'm actually saving more than originally expected, as I've been diligent about paying.

The main lesson from all of this is that I realize now I was preyed upon by CC companies when I had good credit. I'll be hard pressed to get another CC once my debt consolidation is complete. Not because I can't get one--I get offers every single day now--but because I don't want the pattern to repeat.

How about taking out a home equity loan for the full amount of your debt. Interest rates are low. Your interest rate could go from 21% + down to 3%.

His budget is incomplete. Property taxes alone are easily another $200/month. Gas at $4/gallon quickly adds up. And $200/month for food means always brown-bagging a sandwich for lunch, certainly never stopping at Starbucks on the way to work.

Credit card debt is unsecured debt. They cannot take anything away from you. If you call the companies directly, tell them you are in hardship due to covid etc. They will ask if you have any collateral you can get a loan on to pay off your debt. Tell them no, you are willing to pay it off but will never be able to because of the interest. They will work with you, they don't want to lose that money. If it goes to collection, the credit card company has already sold that debt off at a loss and now the debt collection company is coming after you to recoup that money. They will call everywehre. All the time, send you threatening letters but they can't do shit. They will try to make you feel bad, tell you to take out a second mortgage. If it has gone to debt collection, your credit is fucked already so might as well ive with it.

R100 Bad legal advice there. If the credit card company or its assignee gets a judgement against you they have all the rights of a judgment creditor to seize your assets (car, wage garnishment etc) subject to whatever protections your state's laws provide. This is why people go into bankruptcy, to stop judgement creditors.

When properly managed, children can provide a lucrative (if unreliable) income stream.

[quote]But at some point, why not poor that energy into getting an additional or altogether new source of income.

Oh, dear!

[quote] How about taking out a home equity loan for the full amount of your debt.

I don't think this is a good idea. Easy to start chipping away at your home's equity. Next thing you know, you've lost your house.

I had the same amount in credit card debt and had it discharged through bankruptcy. Easy peasy!

^ I don't know that I would refer to having a company and other citizens having to lose money for your bad decisions as "easy peasy."

For the folks stating they declared bankruptcy over 10 years ago, the laws have changed and you no have to pay back much of your debt.

No R107. A few things may have changed but the majority is the exact same. See the link if you are interested.

Okay, thanks R108, I stand corrected.

Buy 50 razors and swallow them all down at once.

r101 The credit card company will not sue, they will sell the bad debt to a collection company who will hound you because they get nothing unless they collect. If it is a single debt amount of 35K they might sue but more than likely it is spread across a few credit cards. No one is going to sue for 5000K dept, not worth it and if the customer fights it, they can lose (more often l than not they will lose as most debt collectors fail to show up to court with a lawyer because 9 times out of 10 the customer fails to show and they win a judgment. Plus Bankruptcy is always an option and they know it even if they win judgement.

R111 For $35,000 it's worth the relatively minimal effort to get a judgement in most states then put a lien on the house if permitted under state law.

You do the OP no favors by soft peddling how this can go south. And your post 100 showed absolute ignorance of the law.

[quote] You don't eat?

Only occasionally, when there’s money left over

r112 -- again if it is 35k owed to one credit card company, which is highly unlikely that someone making 30K a year got a single cc with a 35K limit. More likely it is spread over two or three cards. But lets go with your scenario and they go to court and he loses and has to pay 35K - he has a home he can take a HELOC on and pay off the judgement. Now he is only borrowing against himself. No one is taking his house, calm down Tom Giradi.

My sibling declared bankruptcy and over 10 years later I and my other family members get calls on our cellphones from collectors asking if we are related to the sibling and say they committed a crime. Do you want your family to get those calls?

"... and you no have to pay back much of your debt."

Si?

R114 Yes, a $35000 judgement against the OP will certainly help him get a home loan. Banks just love to make loans to people who can't manage their debts.

[quote]10 years later I and my other family members get calls on our cellphones from collectors asking if we are related to the sibling and say they committed a crime. Do you want your family to get those calls?

Couldn't give one single rat's ass. And your sibling did not commit a crime.

Get a roommate. Someone you know and trust. Not a stranger.

And charge them 200 a month for electricity in addition to rent.

I made $38K just this month.

just pay them off brah

Chapter 7 Bankruptcy

Yes, it’ll wreck your credit for a few years (but you obviously don’t understand it yet and a few years of paying cash for everything - or having to pay upfront for a secured “credit” card for occasional on line shopping and travel reservations will teach you the value of managing money). Besides, three years of discipline is still fewer years than it would take you to pay off more than your annual income in 18% APR debt.

By late 2024 you’ll likely qualify again for a real credit card. Get it. Put it in your wallet; and NEVER, EVER use it again fir anything you can’t pay off in full within thirty days.

Thanks for all the great advice.

I'm not touching my house. It has been in my family since the 60s.

I'm going to cut down on my spending. I 86'ed the gym, DirecTV streaming and my membership to a local amusement park. I'm going to keep doing what I'm doing til July when I pay my car off. I take really good care of it so it should last me many more years. I still have my 13 yr old RAV4 that I drive to work and run errands during the week and save my Camry for weekends and trips.

After I pay the car off then I'm going to take out a personal loan and cut up my cards. My credit score is currently in the 700s so I should be able to consolidate. Even if I end up paying $1000 or so dollars a month it'll still be the best route.

Again. Thank you guys so much for all the helpful advice. I've been in a funk the past few days but feel like I have somewhat of a plan of action now.

It's like back in April when I was fat and feeling miserable so I made a plan and here I am 60lbs thinner.

r117 uhhh he owns the home. A HELOC is a loan against the equity in the home and is secured debt. This is exactly what a debt collector will tell you to do.

To the other poster- it is against the law to cold call family members asking if they are related to so and so. There are limits on how a debt collector can contact you - They cannot call your work or your family.

Is that your gross or net pay OP?

Have you tried a credit counseling service? They can consolidate your payments for you and talk to your creditors and stop any harassing phone calls.

I used them back in the nineties. Saved my life and my credit.

And for me, once I quit drinking and partying, my debts decreased considerably. My credit score went from the low 500s to 780. I have a mortgage now, but not that many expenses.

You got this…it’s a challenge to sit down and look at your financial mistakes. It’s embarrassing and initially looks hopeless. But it’s doable.

R125 Your ignorance about banking and so many other things is stunning.

Banks make loans whether secured or not in the expectation they will be paid in due course without resort to collateral. Indeed, if the bank has to foreclose on the house that's a sign the bank failed in its appraisal of the borrower's creditworthiness.

2 cars a house...dumbfuck illegal immigrant.

OP / R124, I'm assuming you're paying for insurance on that 2nd car. I hate to say this, but I'd get rid of one of the cars. I can't see a reason to own 2 cars in your situation. I'd choose the more reliable car as the "keeper."

Just liability. Roughly $25/month.

Why put wear and tear on one vehicle when the old one is perfect for work?

Don't you have other expenses on the second car - license plate, city sticker, maintenance?

License plate is renewed every 3 years at $11/yr.

No city sticker.

Oil changes maybe 3x a year since I only put about 35 miles/week on it. So $100/yr?

I wanna live where you live - everything is cheap there.

R133, Richmond, VA.

Some things are cheap, some not...Internet, etc..

r127 - in case you wanted to learn something. A HELOC is easier to obtain even with bad credit because the OP said he owns the home outright. So let's just say he has a 125K home - it would factor into his debt to income ratio Is it a good idea to get a HELOC to pay of credit card debt? No. Can it be done even at his debt level, yes? In fact, a bank would probably be more than happy to do the HELOC with a below 20$ debt to income ratio - and collateral. I get the feeling you work for a debt collector because you are trying to scare him. The truth is - the credit card companies will not sue for that low of an amount. It is bad business to sue your customers. They will sell the debt to recover what they can. Debt collectors typically don't sue unless they know they can win and even then it adds costs to their recovery which reduces their profit. The OP can file Chapter 7 and wipe out his unsecured debt. As long as the credit cards were not secured, he can walk away from the debt if they are secured he has to give back the property he bought.

Wipe Out Credit Card Debt and Most Other Nonpriority Unsecured Debts Bankruptcy is very good at wiping out unsecured credit card debt, medical bills, overdue utility payments, personal loans, gym contracts. In fact, it can wipe out most nonpriority unsecured debts other than school loans.

The debt is unsecured if you didn't promise to give back the purchased property if you didn't pay the bill. By contrast, if you have a secured credit card, you'll have to give the purchased item back. Jewelry, electronics, computers, furniture, and large appliances are often secured debts. You can find out by reading the receipt or credit contract