$47828 in Credit card debt- looking for ideas

[skelly]

Hi all. So I have $47828 in credit card debt. I'm in that debt because I was irresponsible and stupid.

I am ready to change my life and be F responsible.

No emergency fund and no savings, 3 k in the bank account.

I am 28 y/o I'm making 85k a year, total take home is $5664.

I do not need people to put me down more than i am right now

Expenses:

Rent $1500/m

Car Lease $403

Phone $60

Car Insurance: $0 (Family paying

Student Loan $550 ($20 k left)

Total: $2463

Credit card debt breakdown:

Chase Freedom 7208, o% APR

Chase Saphire: 500, 23%APR

Chase business (failed business) 9444 , 21%APR

x1: 8800, 22.75% APR

Capital Venture one: 1800, 20.99% APR

Capital One: 1870, 26.99% APR

Petal: 240, 22.24% APR

Amax Platinum: 900

Amax Blue Cash: 100, 23% APR

Upgrade 1: 10000 29.99% APR Personal Credit line

Upgrade 2: 4300, 29.99% APR Personal Credit line

Citi Bank 1 : 535, 26%APR

Citi Bank 2: 0, 23.35% APR

PNC: 150: 21.99% APR

Discover: 1980, 0% APR

Total:$47828

Bankruptcy is an option? Debt payments programs? How i can get out of this grave I dug for myself?

 

[baptizo]

@skelly I am currently hovering around 35k in CC debt and I will just share what I have experienced and what is currently working for me.

Consolidation loan this is a solid option that lowers the overall interest and sets you up with one payment making it very convenient. The one problem with them is the self discipline that it requires. If you consolidate and free up all the balances on your cards and ANYTHING happens and you have to swipe here, swipe there. It all adds up and you are back to paying the loan AND the card again. However closing the cards will lower your credit score. If you choose the loan, don't close them just cut them and remove them from digital wallets.

Snowball method is fantastic. Forces you to work yourself out of your hole and learn your lesson. My problem with it was we just simply didn't stick with it when all the small ones got paid off and we didn't follow thru with the method on the bigger balances.

My current method was a debt management company that showed up on one of the links that was already commented. I went with ACCC American consumer credit counseling. They went over my monthly budget both in and out and asked what all of my accounts did i want to put into their program. They took the info on the accounts and contacted my creditors directly. The lowered EVERY minimum payment and EVERY interest rate. They pull 1 payment from my account and disperse funds as agreed upon by them and the creditors. This does however close the account but its the next best thing between snowballing and consolidation. Its been great for me so far. Hope this all helps.

 

[ashann]

@baptizo Been there done that with Take Charge America.

I actually got forwarded to them by the collection department of one of my credit cards.

 

[hopeful18]

@baptizo I did a debt management company many years ago and it got this paid off, but it does hurt your credit. If this person isn't afraid of the credit hit, it's not a terrible way to go.

 

[bronwynm]

@hopeful18 If you're not afraid of the credit hit, walking away is better.

 

[markh62]

@skelly There is already a lot of good advice in thread, but don't beat yourself up too much. The fact that you are owing up to your mistake and are now doing something about it is commendable. Do not declare bankruptcy, it will f you for a long time. Best of luck!

 

[turretin]

@markh62 Bankruptcy is not that bad. However this person will have to file Chapter 13 and at 85k a year and single they will likely not get much discharged.

Best bet is to talk with the creditors and work out options.

 

[markh62]

@turretin But couldn't it affect not only his ability to get credit but possibly impact finding a place to live or getting a new job?

 

[justin_holmes]

@turretin Yeah, income looks high end for a Chapter 7. But OPA should at least consult with a BK lawyer.

Settlement is another option, but OP should note forgiven debt can be taxed as income (subject to exceptions such as insolvency- student loans actually help there!) and it'll be a credit hit.

 

[turretin]

@justin_holmes Yep. Bankruptcy is not as bad if you already own your home and have assets that are protected like 401k.

I filed 2 years ago and a family of 4 was about 80k a year for chapter 7 cutoff.

 

[bronwynm]

@turretin No. The best bet is to walk away.

 

[skelly]

@bronwynm @bronwynm What do you mean by walk away? just stop paying and wait for them to call and try to settale?

 

[bronwynm]

@skelly Nope. Just ignore them, or tell them to stop calling. If you don't own real property, there's not much they can do. Walk away. Like I said, I'm three years out and already have plenty of credit. The wealthy use this all the time, you should, too.

 

[skelly]

@bronwynm @bronwynm Ok, I would like hear more about your story, what do you mean 3 years out? 3 years not paying them and still able to have credit card?

 

[bronwynm]

@skelly Exactly. I have three credit cards, and several accounts with 0 interest. Do not believe the common myths about bankruptcy. No one will lose their job because you walked away. No one will go hungry.

 

[z71517]

@skelly A lot of people live on $30k or $35k a year.

You're making $85k. If you live on $35k a year, then in about a year, maybe a bit more, you can pay it all off.

You can't continue with the same lifestyle you've had and expect to pay it off. That lifestyle is what got you so far in debt.

 

[irefusetofail]

@z71517 Yep. Your advice is the only real advice in the thread and it will be soundly ignored, I guarantee it.

 

[jesusisall]

@z71517 This exactly. No need for bankruptcy. Move from where you are to a smaller place, sell your car and buy a cheaper one, sell everything in sight and get pay anything extra on top of your basic needs towards the debt.

 

[bronwynm]

@jesusisall LOL!

Make yourself suffer even more by paying back companies that would cut you open and take your organs if the law allowed them to.

He can walk away for a lot less grief.

 

[loakeohna]

@z71517 Agree. It’s terribly simple.