slavenomore

I AM A SUCH A FOOL: Went back, paid my last 5K to CC and now am broke.

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I AM A SUCH A FOOL: Paid my last 5K to CC and now am broke.

I sold a job and went back to CC companies and started making payments again. I couldn't stand the anxiety. I thought i could increase my income and pay the CC and pull it all off and still remain a member of the FICO club. But my dad and GF got sicker as i care for them, and my healthy ins went up 30%. (725/m!) it killed me.

I couldn't pay my CC for the first time,it has only been a few days but now they are calling every day. forgive my rambling, not thinking so well..

chase 3 cards 30K

First national -1 15K

discover-1 10K

other 5k

I really screwed up this time.

What would you do in my shoes?

BK? Debt settlement? OTHER?

Bottom line:

Made 33K last year and paid 12K in CC debt! ( that was an eye opener)

now.

70K in debt all unsecured, except $2000 in IRS. NO ASSETS.

Was Paying $1200 in CC min/m

Expenses: 3972/m + $1200 in cc min = $5172/m

Income: $2800 M average for last 6 months (gulp!)

BACKGROUND NUMBERS:

Self Employed 25 years. Long Recession is finally killing my business.

Even long term clients are now leaving. GF, and Dad in an out of

Hospital/ 50% of time/expense/energy spent doing service (caretaking).

Fico 780 all three CRA's 3 months ago/ now 650

CC all maxed out.

Paying $1200/m to 6 CC just for minimums.

This week I had to choose health insurance or CC. I chose my health ins.

INCOME = a paltry $2800/m AVERAGE for last 6 months, I am working my a$$ off to get new clients, I get one new client and lose 2. I love my job and will keep working toward increasing income, Also my job is phone based consulting

So it allows me to caretake my father and GF at the same time.

EXPENSES/m = $3872 without CC min.

+ $1200/m with cc minimums = $5172

DEBT: $60,700

$58,800 CC debt - 6 cards.

1,100 medical debt

2000 IRS PAST DEBT

Total Debt: $80,700

1) I have reduced expenses as much as possible.

2) my cc are maxed out

3) I am trying to increase my income, but my caretakeing role does not allow a second job at this time.

What are my options please? All experience and wisdom and constructive comments welcome.

Thanks!

SNM

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thanks so much for the advice, so trying a debt settlement is out of the question in your opinion? Thx.

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thanks so much for the advice, so trying a debt settlement is out of the question in your opinion? Thx.

Sure, if you want to come back in six months and start a thread that says "I'm such a fool, I tried debt settlement and now am broke and being sued."

Debt settlement is just a chapter 13 BK without any protections of a BK court and the creditors under no obligation to accept the settlements. I'm not saying file BK either way, but a BK does wipe everything out (CH 7) or the creditors are forced by the court to accept a reduced amount as settled in full (CH 13).

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You are only going to qualify for debt settlement if you have some sort of income to pay with. Based on your numbers, you don't. I agree that you should just toss the BK card and get a fresh start. Just learn from this lesson and stay away from consumer debt. If you get back on that train, you will end up at the same station again eventually.

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thank you for your generous advice... most of my debt on CC was medical related, i lost 6 people in 3 years...but is all unsecured.

The concerns i have about BK are these

1) finding a new apt.

2) if MY health goes there are NO alternatives left. no last move

3) perhaps even owning a house someday.

I agree: my debt load/income has to change forever. I am willing.

thanks for you patience... I am not thinking too straight with all this stress.

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Going dark won't help...they will find you.

As for an apartment, avoid the big complexes...go for the mom and pop units...they might check credit, but they probably won't car about the BK.

Your health is what it is...and, there are always alternatives...SSDI, VocRehab if you're still working, just walk in to the emergency room...

a house someday is possible. We did it...BK7 in 2004, house in 2007.

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I know of at least 3 people in my life that filed BK and were in a house in 4 years. Its not the end of the world.

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BK is exactly for someone in your situation. It's a fresh start. As far as getting an apartment, with your current income and expenses your credit rating will eventually get so trashed a BK isn't going to hurt it much. Unless you realistically see your income increasing any time soon, might as well just drop the nuke and start over.

JMHO of course.

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that will also allow you to file fdcpa violations as they cause them. you can save the violations for 1 year.

Just saying you are done with credit now, BK and move forward. There is no stigma for it now like in the past.

The biggest bank wamu filed BK why can't you.

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The negative sting of BK is long gone. If you file BK you will wipe out about .0001% of what the big banks and corporations wipe away. They are filing in record numbers, join the party if you must.

I still would not do it unless I just had to, but I would not think twice about it like I would have ten years ago.

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thank you so much for your experience, kindness, strength and advice, you are giving me hope...I need to right size this thing and try to make it real....

any other tips are appreciated...

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I didn't have a BK, but an ex put me into two repo's when we split. Three years later I was in a $200,000 house with very low interest. You will survive, just get the BK behind you.

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