Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
My take home pay per month is variable, anywhere from $3,200 to $4,000 per month. Gross annually approximately $60-$65k.
I have about $20,000 of unsecured credit card debt one year into collections. One of my creditors sold $5,000 of debt to a junk debt buyer, 3 months ago they sent me a bill, I requested validation of the debt, no response. The other creditor still has ownership of the $15,000 debt.
The statute of limitations if 4 years. I'm debating whether I should file for Chapter 13 or just stop paying my credit cards to see if all the debts get sold off to junk debt buyers and fade away from existence after 4 years if the junk debt buyers are unable to validate the debts.
I don't think it makes sense to make minimum payments for 30 years and pay back close to $375,000 instead of the approximately $125,000 in debt I owe. The interest rate on my credit cards recently went from about 25% to 30% or more! Big companies that are "too big to fail" pass off the bill to the rest of us all the time, to the tune of billions of dollars.
I'm in the red, I cannot afford all of my minimum payments anymore and I pay down my credit cards only to use them again during the month for food and gas.
Minimum payment sum of all credit cards outstanding: Over $2,000
Debt in collections: $20,000
I don't have anything creditors can take from me, I'm underwater on a car worth about $5,000, I have a loan for it for about $12,000.
The worst I think they can do to me is levy my bank account, but I can live on a cash only basis for 4 years if needed by cashing my paychecks at the issuing bank.
In any case, my financial future looks grim for at least 5 years. Sometimes I think of moving away to another country and starting over.
My take home pay per month is variable, anywhere from $3,200 to $4,000 per month. Gross annually approximately $60-$65k.
I have about $20,000 of unsecured credit card debt one year into collections. One of my creditors sold $5,000 of debt to a junk debt buyer, 3 months ago they sent me a bill, I requested validation of the debt, no response. The other creditor still has ownership of the $15,000 debt.
The statute of limitations if 4 years. I'm debating whether I should file for Chapter 13 or just stop paying my credit cards to see if all the debts get sold off to junk debt buyers and fade away from existence after 4 years if the junk debt buyers are unable to validate the debts.
I don't think it makes sense to make minimum payments for 30 years and pay back close to $375,000 instead of the approximately $125,000 in debt I owe. The interest rate on my credit cards recently went from about 25% to 30% or more! Big companies that are "too big to fail" pass off the bill to the rest of us all the time, to the tune of billions of dollars.
I'm in the red, I cannot afford all of my minimum payments anymore and I pay down my credit cards only to use them again during the month for food and gas.
Minimum payment sum of all credit cards outstanding: Over $2,000
Debt in collections: $20,000
I don't have anything creditors can take from me, I'm underwater on a car worth about $5,000, I have a loan for it for about $12,000.
The worst I think they can do to me is levy my bank account, but I can live on a cash only basis for 4 years if needed by cashing my paychecks at the issuing bank.
In any case, my financial future looks grim for at least 5 years. Sometimes I think of moving away to another country and starting over.
You mentioned that you had $20,000 in unsecured debt but then make mention of $125,000 total debt, and minimum credit card payments of $2,000/month. This doesn't square. What is the complete story here?
I see a line item for a $300/month student loan repayments. Is that a large part of the difference between the $20,000 in credit card debt and the $125,000 in total debt?
The rest of your expenses don't look too bad. With the negative equity, you can't really do anything about the car. You may be able to cut expenses here and there and maybe increase income, but none of that is going to help if you have $2,000 in minimum monthly credit card payments.
If you have over $2,000 in monthly minimum credit card payments, I would stop paying on them immediately and go to a cash only basis. You also should consult a qualified bankruptcy attorney.
Holy bankcard debt. What in the world did you buy that you have $2000/month in bankcard minimums? That is almost triple my mortgage. Can you sell some of it to pay down the debt?
Anyway, contact the card holders, tell them you can't afford the payments, and are intending to stop making payments and file bankruptcy (be convincing that this is your actual plan, not just an idea you are tossing around) if you can't get the interest rates down to a rate where you can make progress on the debt. At 12% or lower, you could make substantial headway.
Also, shop your car insurance. My husband was only paying $50 a month for full coverage when he got his new car. You are more than 3 times that rate.
Also, put your student loans on a hardship deferment, that'll give you $300 more a month to throw at the credit card debt. I assume the student loans are a MUCH lower interest rate.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
