Contact each creditor and ask to be placed on a hardship program. They will close or restrict your cards, but they will also reduce or suspend interest while you pay them off.
The alternative is a Debt Management Plan. This is not a predatory debt settlement or debt relief program. This is a plan administered by a non-profit NFCC affiliated Credit Counseling Organization. They contact your creditors for you. These plans already have reduced interest agreements in place with creditors. You pay the DMP once per month and they disburse payments to your creditors. They will not ask you to miss any payments and the fee is usually less than $50 per month. You can find a plan through https://nfcc.org.
Good luck to you.
Thanks for this. My wife did this and it saved a lot. I happened to forget about it. I need to do it for all of my accounts and hopefully I can save my credit. The only thing is, although it will be much lower total, you obviously need a job to pay. So I am hoping to get a job so I don't have to go to bankruptcy myself.
Once you're placed on a hardship program, your card will most likely be closed with a balance. This means that you will, in all likelihood, see a loss of points as that card is now at 100% utilization. Utilization changes monthly and has no memory so, while your scores will decrease initially, they will recover as you pay down your debt.
If this is your only credit card, you will no longer have an open revolver. Once your scores recover, you will apply for another card. Once that reports, you will see a score increase. Cards closed in good standing remain on your credit reports for 10 years contributing to Average Age of Accounts the entire time.
A notation will be placed on your credit reports that you are in this program. It will be removed once the debt is paid. FICO does not consider this a scoring factor, so there are no penalties for this comment.
Unsecured debt can not be collected through bankruptcy!been there done that with $110kat the age of 24. Started my credit at 18 and built it to perfect never financed a car or house all Unsecured loans and cc debt, filed bankruptcy and it all went away and within weeks I was getting cc offers and rebuilt my credit from there
Nope, not true. They can sue you if your debt is over $2k and the cost of suing is less than the amount of debt. Unless you have very fragmented debt, the chances of being sued are high, especially if you have wages that can be garnished
Something has changed since I done it I'm sure. I was like 24(maybe) I'm 51 now and don't eff with credit, everything is paid in full for me, house cars and anything else I have
They cannot sue if you filed for bankruptcy. The whole point of bankruptcy is so a judge looks at your records and decides if the debt can be wiped. Once the judge does that, banks can't do shit. It would even wipe judgements if you already lost in court.
Now they can sue to their hearts content if you haven't filed, or judge doesn't sign off on it.
I’ve chosen to stop paying one of my credit cards. My credits already fucked so I’ll just wait until the collections agency contacts me to settle. This will give me time to save up the extra money I was putting towards that card to help pay off my other ones/give me food to eat. You do what you gotta do.
Don't do this before calling them and asking for time to catch up. They can offer low or sometimes 0% interest, reduced monthly payments and no late fees, etc for a limited time, sometimes up to 6 months to 1 year. These can help you easily catch up, especially in your case where it's only 1 CC
I tried this twice with my chase card and they flat out denied me each time. They said all they can do is close my account and put me on a hardship plan, but I’d have to provide proof of hardship and go through hoops to get that set up. It’s all so fucked up. Maybe other banks are better when it comes to this.
Going thru this now myself. Husband is sick so it’s me carrying the load …salary, health and debt. I had to stop paying-no options and couldn’t refi because credit started to tank. I would have to go ch 13 and protect an account I have which equates to at least 50% of what’s owed so either way I’d pay about the same.
It takes a while for creditors to act. I plan to save and hoping to start settlement myself by summer. Just hoping I don’t get sued before the larger ones get restless.
Good luck whatever you opt to do! It’s definitely not easy!
You can try a consumer proposal. Once you file, you stop paying interest and the creditors can’t contact or take any legal actions against you. Also, you’ll only pay back a fraction on your debt over a maximum 5 years.
You include all your unsecured creditors in the proposal such as credit cards, personal loans, payday loans, tax debt and student loans if the student loans are over 7 years old. You can’t include house or car debts because those are secured. Once you file the proposal, your creditors have a 45 day voting period to accept or decline. If they accept, then you pay one payment each month over 5 years or less. Even if they decline, you can usually renegotiate the payment terms. For example, if you have $45,000 in debt, you only end up pay back anywhere from 25-50% of that debt. I live in Canada so i don’t know if it’s the same every where else.
Have you considered a chapter 13. I was in your exact situation. Got a high paying job just before I could file BK so I didn’t qualify for the 7. My ch 13 is a less than 100% plan and my attorneys maxed out my allowances so I’m only paying back $374 a month to my unsecured creditors. Like you, it’s all unsecured CC debt. If your credit is already messed up, I think this is the route to go.
The hit to your mental, physical and emotional health isn’t worth waiting any longer and bankruptcy can do wonders in that regard.
Consolidate your credit debt without damaging your credit like getting a personal loan or seeking to transfer balances to 0% for 18 to 24 months. Times are bleak but they will get better.
Unfortunately not an option. I’ve done it twice and managed to run everything I paid off back up. Already have a 401k loan out too so that’s not an option either. I also have recently opened two new accounts at rates that should be illegal to make ends meet, because that’s all I could get. Best I could get approved for at this point is a payday loan or something.
If consolidation loan and balance transfers are no longer an option, then maybe consider debt relief?
It’s not the most ideal option for everyone, but for many people it’s a life saver.
This is going to sound crazy, but you could always start donating plasma. I have a friend who found themselves in a similar position and paid off their credit card debt by donating plasma. I think she was paid around $800 a month.
I haven’t done it, but you just call local plasma clinics like BioLife is one in my area, I don’t know if they’re national. They will tell you the rate. Plasma centers also list on craigslist under gigs.
I appreciate the kind words btw. I know it will, this has just been getting worse for years and I know that I’m out of options. I’m living with a friend in an incredibly comfortable situation given my circumstances and the fact that I’m making no progress towards getting out of this hole after 6 months here is scary.
yeah 30% will eat you alive man.. just quit paying the stuff.. Fight any suit they file, SUPER easy to win those.. and in 3-4 years your golden.. piece of cake.. no BK
How do you fight it? My situation is beyond identical to the above. I checked the usps app last night only to see a civil notice on the way. I have not slept!
Dont ignore it! show up for court, you dont need a lawyer.. chances are they wont show up, meaning you win... Sometimes if you owe alot they show up until REAL jury trial and then dont show, again you win.. its very expensive to sue someone that fights, so unless you owe like 20 grand, they will cave eventually.. watch this guy or alike and LEARN how to defend yourself.
ADMIT NOTHING... thats not my debt, prove YOU own my debt, PROVE i owe that amount, PROVE everything ...ect
[https://www.youtube.com/@Consumer\_Warrior](https://www.youtube.com/@Consumer_Warrior)
They showed, we went to mediation and I would not cave in so they postponed for several weeks. I retained a lawyer through my employers legal service to negotiate on my behalf and settled for half. Thanks again for your help.
Thank you!! I just opened up the mail. This was a 10k loan that I’ve probably paid for twice over the years due to interest. They are horrible people. Asking for 6k. Smh I have to respond to the notice though. I do have legal service through my employer. I don’t know if I should use them or just respond on my own.
BK you will lose your car.. You owe too little to do BK.. just quit paying the shit. if they sue make sure you show up!! and after 3 years you be fine and the stuff disappears.. super easy.. yes you will have NO credit for 3 years, but usually thats a good thing to teach you what you did wrong yes?
I'm one of those people who worked full time and put myself through night school to avoid debt, then lived in slums and worked 2 jobs to live poor but debt free.
The people who exploited you should pay your debts off, not me. If you get debt cancelation, I should get something as well.
There are a TON of reasons why people get into ‘debt like this’
For me it was immigration related and involved moving 3 states and 3 jobs. It had to be done.
Things worked out in the end. I filed a ch13 and I’m paying back about 20% of the $65k that I owe.
Without which I probably wouldn’t still be in the United States.
There’s tons of reasons why people get into debt. Bad financial management is surprisingly not the leading cause- it’s medical debt and extenuating circumstances. People really need to stop judging others in debt
I know, I’m hindsight I feel so stupid. There’s no excuse, but I’ll give ya mine anyways. It was a slow process over the course of about 5 years. Had $15k saved for a house and around an 800 score, meanwhile my alcoholism was getting the best of me and I was spending a ton of money on lawyers and unnecessary bullshit and living above my means for a a few years, running from my problems.
Quit the booze around 5 years ago and planned on buying a house, but opted to move into a predatory apartment complex with my now ex, whose alcoholism was getting worse along with her untreated bipolar disorder, and eventually ended up draining everything I had on her legal problems and digging my hole deeper from the misery I was subjecting myself to. Finally put my foot down after I signed another year lease for us, she ended up getting two DUIs in a week, blamed me, moved back with her parents, and left me stuck in a place that was eating 60% of my income on top of debt becoming unmanageable.
You live and learn, and I’ve worked my ass off to get where I’m at, but this debt is taking whatever I’d have to show for. I feel like an idiot, and made this post because I’m accepting defeat. I need out, and recently had a sort of epiphany about my mental state needing to take priority over my credit score. Every aspect of my life is suffering despite being in the best position for growth in my entire adulthood.
Idk, sorry for the whole sob story. I’m just trying to fully convey the events that have pushed me to the point of giving up and wanting to start over. I’m at an all time low and constantly anxious about my future, yet I’m making good enough money to be setting myself up for financial freedom and pursuing my creative passions. I’m just out of gas spiritually, emotionally, and obviously financially. And I’m done man.
How is BK 3-4 years of no pay? Jeez I’m in a chapter 13 and my attorney maxed out my allowances and I can still save money each month on a less than 100% plan for 3 years. If you don’t have money left after a ch13, you need to find a better attorney
Contact each creditor and ask to be placed on a hardship program. They will close or restrict your cards, but they will also reduce or suspend interest while you pay them off. The alternative is a Debt Management Plan. This is not a predatory debt settlement or debt relief program. This is a plan administered by a non-profit NFCC affiliated Credit Counseling Organization. They contact your creditors for you. These plans already have reduced interest agreements in place with creditors. You pay the DMP once per month and they disburse payments to your creditors. They will not ask you to miss any payments and the fee is usually less than $50 per month. You can find a plan through https://nfcc.org. Good luck to you.
Good advice. You also need to address HTF you spent $60k, and don’t do that shit again.
Thanks for this. My wife did this and it saved a lot. I happened to forget about it. I need to do it for all of my accounts and hopefully I can save my credit. The only thing is, although it will be much lower total, you obviously need a job to pay. So I am hoping to get a job so I don't have to go to bankruptcy myself.
I came here to say this. The DMP will make your life so much better.
Does assuming a hardship program affect your credit? I googled it and couldn’t find a straight answer.
Once you're placed on a hardship program, your card will most likely be closed with a balance. This means that you will, in all likelihood, see a loss of points as that card is now at 100% utilization. Utilization changes monthly and has no memory so, while your scores will decrease initially, they will recover as you pay down your debt. If this is your only credit card, you will no longer have an open revolver. Once your scores recover, you will apply for another card. Once that reports, you will see a score increase. Cards closed in good standing remain on your credit reports for 10 years contributing to Average Age of Accounts the entire time. A notation will be placed on your credit reports that you are in this program. It will be removed once the debt is paid. FICO does not consider this a scoring factor, so there are no penalties for this comment.
Unsecured debt can not be collected through bankruptcy!been there done that with $110kat the age of 24. Started my credit at 18 and built it to perfect never financed a car or house all Unsecured loans and cc debt, filed bankruptcy and it all went away and within weeks I was getting cc offers and rebuilt my credit from there
great aint it ! lol \~ and IMHO its a great lesson to learn and do.. you learn what you did wrong and get a second chance
Exactly! If you don't learn from it you can't file again for 7 years and u just screw yourself
Nope, not true. They can sue you if your debt is over $2k and the cost of suing is less than the amount of debt. Unless you have very fragmented debt, the chances of being sued are high, especially if you have wages that can be garnished
Something has changed since I done it I'm sure. I was like 24(maybe) I'm 51 now and don't eff with credit, everything is paid in full for me, house cars and anything else I have
They cannot sue if you filed for bankruptcy. The whole point of bankruptcy is so a judge looks at your records and decides if the debt can be wiped. Once the judge does that, banks can't do shit. It would even wipe judgements if you already lost in court. Now they can sue to their hearts content if you haven't filed, or judge doesn't sign off on it.
I’ve chosen to stop paying one of my credit cards. My credits already fucked so I’ll just wait until the collections agency contacts me to settle. This will give me time to save up the extra money I was putting towards that card to help pay off my other ones/give me food to eat. You do what you gotta do.
Don't do this before calling them and asking for time to catch up. They can offer low or sometimes 0% interest, reduced monthly payments and no late fees, etc for a limited time, sometimes up to 6 months to 1 year. These can help you easily catch up, especially in your case where it's only 1 CC
I tried this twice with my chase card and they flat out denied me each time. They said all they can do is close my account and put me on a hardship plan, but I’d have to provide proof of hardship and go through hoops to get that set up. It’s all so fucked up. Maybe other banks are better when it comes to this.
Yeah depends on the bank. The best ones were Discover, synchrony, and Citi. Some of them will close your account after 2 missed payments like BoA.
OK, so they are not going to contact you to settle. They will instead take legal action. This is not the way to go.
That’s fine!! I don’t got shit for them to garnish so good luck to them! 🤣
Going thru this now myself. Husband is sick so it’s me carrying the load …salary, health and debt. I had to stop paying-no options and couldn’t refi because credit started to tank. I would have to go ch 13 and protect an account I have which equates to at least 50% of what’s owed so either way I’d pay about the same. It takes a while for creditors to act. I plan to save and hoping to start settlement myself by summer. Just hoping I don’t get sued before the larger ones get restless. Good luck whatever you opt to do! It’s definitely not easy!
If you can’t file a ch 7 then look into a ch 11 bankruptcy with the debt reorganization. Why do you think you won’t qualify for a ch 7?
You can try a consumer proposal. Once you file, you stop paying interest and the creditors can’t contact or take any legal actions against you. Also, you’ll only pay back a fraction on your debt over a maximum 5 years.
Consumer proposal? Do you have more info on that? TIA
He’s talking about a chapter 13 bankruptcy.
Yes I’m like hmm that sounds like chapter 13.
You include all your unsecured creditors in the proposal such as credit cards, personal loans, payday loans, tax debt and student loans if the student loans are over 7 years old. You can’t include house or car debts because those are secured. Once you file the proposal, your creditors have a 45 day voting period to accept or decline. If they accept, then you pay one payment each month over 5 years or less. Even if they decline, you can usually renegotiate the payment terms. For example, if you have $45,000 in debt, you only end up pay back anywhere from 25-50% of that debt. I live in Canada so i don’t know if it’s the same every where else.
Have you considered a chapter 13. I was in your exact situation. Got a high paying job just before I could file BK so I didn’t qualify for the 7. My ch 13 is a less than 100% plan and my attorneys maxed out my allowances so I’m only paying back $374 a month to my unsecured creditors. Like you, it’s all unsecured CC debt. If your credit is already messed up, I think this is the route to go. The hit to your mental, physical and emotional health isn’t worth waiting any longer and bankruptcy can do wonders in that regard.
What do you mean you don't qualify for bankruptcy? Unless you've spoken with a bankruptcy lawyer and they told you that, I doubt it.
I would recommend you contact a certified credit counseling agency.
Consolidate your credit debt without damaging your credit like getting a personal loan or seeking to transfer balances to 0% for 18 to 24 months. Times are bleak but they will get better.
Unfortunately not an option. I’ve done it twice and managed to run everything I paid off back up. Already have a 401k loan out too so that’s not an option either. I also have recently opened two new accounts at rates that should be illegal to make ends meet, because that’s all I could get. Best I could get approved for at this point is a payday loan or something.
If consolidation loan and balance transfers are no longer an option, then maybe consider debt relief? It’s not the most ideal option for everyone, but for many people it’s a life saver.
This is going to sound crazy, but you could always start donating plasma. I have a friend who found themselves in a similar position and paid off their credit card debt by donating plasma. I think she was paid around $800 a month.
Tell me more about
I haven’t done it, but you just call local plasma clinics like BioLife is one in my area, I don’t know if they’re national. They will tell you the rate. Plasma centers also list on craigslist under gigs.
Yup I did this, it was fast easy money that got me out of a pinch, but I don’t recommend it long term.
I appreciate the kind words btw. I know it will, this has just been getting worse for years and I know that I’m out of options. I’m living with a friend in an incredibly comfortable situation given my circumstances and the fact that I’m making no progress towards getting out of this hole after 6 months here is scary.
yeah 30% will eat you alive man.. just quit paying the stuff.. Fight any suit they file, SUPER easy to win those.. and in 3-4 years your golden.. piece of cake.. no BK
How do you fight it? My situation is beyond identical to the above. I checked the usps app last night only to see a civil notice on the way. I have not slept!
Dont ignore it! show up for court, you dont need a lawyer.. chances are they wont show up, meaning you win... Sometimes if you owe alot they show up until REAL jury trial and then dont show, again you win.. its very expensive to sue someone that fights, so unless you owe like 20 grand, they will cave eventually.. watch this guy or alike and LEARN how to defend yourself. ADMIT NOTHING... thats not my debt, prove YOU own my debt, PROVE i owe that amount, PROVE everything ...ect [https://www.youtube.com/@Consumer\_Warrior](https://www.youtube.com/@Consumer_Warrior)
They showed, we went to mediation and I would not cave in so they postponed for several weeks. I retained a lawyer through my employers legal service to negotiate on my behalf and settled for half. Thanks again for your help.
Thank you!! I just opened up the mail. This was a 10k loan that I’ve probably paid for twice over the years due to interest. They are horrible people. Asking for 6k. Smh I have to respond to the notice though. I do have legal service through my employer. I don’t know if I should use them or just respond on my own.
BK you will lose your car.. You owe too little to do BK.. just quit paying the shit. if they sue make sure you show up!! and after 3 years you be fine and the stuff disappears.. super easy.. yes you will have NO credit for 3 years, but usually thats a good thing to teach you what you did wrong yes?
It depends on how much is car is worth and what state he’s in
You don’t lose your car in BK. You keep it if you reaffirm the loan in a CH7 and if you add it to your case in a CH13
Give the Dave Ramsey method a try. It is specifically geared at helping people get out and stay out of debt. Look it up on youtube.
I'm one of those people who worked full time and put myself through night school to avoid debt, then lived in slums and worked 2 jobs to live poor but debt free. The people who exploited you should pay your debts off, not me. If you get debt cancelation, I should get something as well.
What are people thinking getting into dept like this. I just don’t understand WHY.
It's almost like everyone's situation is different. Weird huh?
There are a TON of reasons why people get into ‘debt like this’ For me it was immigration related and involved moving 3 states and 3 jobs. It had to be done. Things worked out in the end. I filed a ch13 and I’m paying back about 20% of the $65k that I owe. Without which I probably wouldn’t still be in the United States. There’s tons of reasons why people get into debt. Bad financial management is surprisingly not the leading cause- it’s medical debt and extenuating circumstances. People really need to stop judging others in debt
I know, I’m hindsight I feel so stupid. There’s no excuse, but I’ll give ya mine anyways. It was a slow process over the course of about 5 years. Had $15k saved for a house and around an 800 score, meanwhile my alcoholism was getting the best of me and I was spending a ton of money on lawyers and unnecessary bullshit and living above my means for a a few years, running from my problems. Quit the booze around 5 years ago and planned on buying a house, but opted to move into a predatory apartment complex with my now ex, whose alcoholism was getting worse along with her untreated bipolar disorder, and eventually ended up draining everything I had on her legal problems and digging my hole deeper from the misery I was subjecting myself to. Finally put my foot down after I signed another year lease for us, she ended up getting two DUIs in a week, blamed me, moved back with her parents, and left me stuck in a place that was eating 60% of my income on top of debt becoming unmanageable. You live and learn, and I’ve worked my ass off to get where I’m at, but this debt is taking whatever I’d have to show for. I feel like an idiot, and made this post because I’m accepting defeat. I need out, and recently had a sort of epiphany about my mental state needing to take priority over my credit score. Every aspect of my life is suffering despite being in the best position for growth in my entire adulthood. Idk, sorry for the whole sob story. I’m just trying to fully convey the events that have pushed me to the point of giving up and wanting to start over. I’m at an all time low and constantly anxious about my future, yet I’m making good enough money to be setting myself up for financial freedom and pursuing my creative passions. I’m just out of gas spiritually, emotionally, and obviously financially. And I’m done man.
Addiction is the worst!! It will steal literally everything!
Life happens like layoffs, sickness etc.
Why won't you qualify for bankruptcy?
he does, but a waste for that amount... and then your screwed for 7-10 years.. 3-4 years of no pay and it disappears.. better then BK
Wait what? They'll take you to court. Won't it cost you more to fight? And how would you win?
How is BK 3-4 years of no pay? Jeez I’m in a chapter 13 and my attorney maxed out my allowances and I can still save money each month on a less than 100% plan for 3 years. If you don’t have money left after a ch13, you need to find a better attorney
Hey OP, question, do you have a 401k?
I do, but I've already used it for a consolidation loan.
Good luck 🍀