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I am stupid 22yr old. I have a problem with credit card debt (about ~15K), due to the loss of full-time job, and I can't keep up with payments. I am trying to figure out a way how to solve this. Currently I am making about $600/month. I am behind on my payments. Creditors call me everyday. I live on my own, and right now the maximum amount I can spend on paying my cc bills is about $250. (I don't have to pay rent, but I provide my own food/personal expenses)
I am thinking about filing for bankruptcy (I am low-income, no assets), but I am concerned about one of my cards. I am an authorized user on this card, which is carrying the largest amount of the debt (12K), but the primary user not once used this card, and probably does not know that it even exists (He is my father, how I am desperately trying not to involve in this situation). How will it may work? Would I be able to take over this card as my debt? (Because it really is)....And even if I would go with "debt consolidation" agency, would this card will be counted as my card?
Today I actually signed up for a debt consolidation with a law-firm (CareOne), but I just read a lot of negative things about debt consolidation companies overall, so I am thinking of cancelling tomorrow morning....Should I proceed with them or not?
I am really confused and scared. My biggest concern is that I don't want my father to take any loss because of me. And only after that I am worried about myself - how any of options above would affect my future (would I be able to get a job? or rent an apartment?)
If anyone can help with advise or best solution I would greatly appreciate it. Thank you!
If you default on the co-signed card, creditors will go after your father for the $12k before either you or father will be able to file BK. This is EXACTLY why I caution people to NEVER co-sign a loan/credit card/ other debt for anyone....even family.
How did you get into so much debt? Is there anything you bought that you can sell and put the money towards your balance?
Are you working full time? You need a second job, stat! Even if it's house-keeping or something else menial you may consider to "beneath" you.
I am honestly shocked creditors haven't called your father yet. The first month you cannot pay the minimum in full, you can bet they'll be knocking down his door. He is going to find out- no way around that- so you may as well be honest and fess up.
PS- yes, if you file BK it will be on your credit report for 7 years. It will be virtually impossible to rent an apartment from a reputable landlord during that time. You may encounter landlords who want you to Pre-pay 12 months rent up-front so they dont take a risk on someone who can't manage her money.
Same with jobs- most companies DO run a credit check and have every right to not extend a job offer if you have horrible credit. This is particularly true if you are applying for any sort of job that handles money (bank teller, mortgage loan officer, even just an admin at an accounting firm).
TurtleCreek80,
Thank you for your reply,
Currently I have a part-time job(paid 6-mnth internship) + some free lance work I do, and I am looking for a second job. But there is no way I would be able to pay off this cc, because they raised APR to 29% and added load of fees, and unless i will be paying a double minimum pmt i will be in debt forever. (And yes, I realize that I am the person who did this to myself, and my irresponsibility led me to this problem so i really cant blame anyone and have to take this responsibility)
Unfortunately there is nothing much I could sell to decrease the debt. I probably have better chances on finding a second job.
So in order to get rid of this cc debt my father would have to file for BK? Is there a way to take him off a cc and make me primary?
Does going with debt consolidation agency/law firm would help me in any way? They are promising me to reduce my debt 40% to 50%....But I don't know how true is it?
...So in order to get rid of this cc debt my father would have to file for BK? Is there a way to take him off a cc and make me primary?
Does going with debt consolidation agency/law firm would help me in any way? They are promising me to reduce my debt 40% to 50%....But I don't know how true is it?
There is no way that the creditor will agree to let your father off the hook. Why would they? They want their money back, and if they can't get it from you they will go after him. It would be insane from their perspective to eliminate the only means they have of getting the debt repaid. Actually, if you are only a user of the card, I can't believe that they aren't calling him. Legally, it's his debt, not yours.
And your father may not qualify for bankruptcy relief. His financial situation may be fine. If he has the means to pay this debt, you can believe he will be expected to do so.
You may be able to negotiate with the creditor for a reduced amount, especially if you can pay it off lump-sum. Is it possible that your father could do this, and then you just pay him back?
As for the debt consolidation company, is this a consumer credit counseling service or a debt consolidation loan? If it's a credit counseling service, make sure it's a non-profit and not some scammer. I've heard of some that have had their clients pay them and they never turn the money over to the creditors. Or else they take such a huge cut that you end up paying more than you should. Sometimes the legitimate plans do work out, but the failure rate is very high.
Good luck to you. This is a learning experience and I'm not trying to beat you up. I got myself into a similar situation 35 years ago when I was your age. At least my debt was my own and fortunately didn't involve any co-signers. I'm sure that's making it worse for you because you don't want to involve your father in this. But unless you can increase your income and pay it off yourself, I don't see any way you can keep him out of it.
but the primary user not once used this card, and probably does not know that it even exists (He is my father, how I am desperately trying not to involve in this situation).
Did you fraudulently open up this credit card? If not, how would he not know it exists?
You do realize you are trashing his credit as well don't you? So not even telling him, so that he may do something to stop the effect it's having on his credit (if he has the means to do so), is making the situation way worse. I realize you are scared to say something, but if my son did this to me, then on top of it, tried to hide it, it would be ten times worse then if he just fessed up.
I am honestly shocked creditors haven't called your father yet. The first month you cannot pay the minimum in full, you can bet they'll be knocking down his door. He is going to find out- no way around that- so you may as well be honest and fess up.
I get the impression the OP still lives at home. They are probably sending notices in the mail, which the OP is getting before dad sees them.
I agree 100% with those who said Fess Up. "My kid is stupid and screwed up" always hurts the relationship less than "My kid lied to me about being stupid and screwing up" (and screwed up my credit in the process).
I thni someone needs to have a talk with his fatehr before the father gets a very unpleasant surprise. I really think its doubtful that the OP can do a balance transfer to a new individual account since he sould get one in the first place and then this.
Wow, you basically stole $12k from your dad. That is awful.
Frankly, you should:
A. confess what you did to him. He may be able to get it paid off immediately before it accrues that ridiculous interest.
B. immediately drop any plans for yourself and do what you have to do to pay that debt off. Quit school and work three jobs, become a stripper, whatever.
Seriously, that is shameful. I don't know what your father's situation is, but what you did could be devastating.
He actually did not steal it snice his afather consented by co-signing. He did betray his trust tho ;IMO.
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