Home > protect credit rating > I owe almost 70K in credit card debt. I have lost my job & simply cannot pay it. What will cc do? Charge off?

I owe almost 70K in credit card debt. I have lost my job & simply cannot pay it. What will cc do? Charge off?

Monday

I owe right about 70K. My husband and I have tried to protect my credit for years, but now since I am out of work and have been for the last 10 months, we cannot pay them. If I am going to have to go to consumer debt counseling, I would rather just have them charged off and start over anyways using just cash. I owe amex 20K, bank of america 20K, and some other little ones. If I kept the little ones, would they hike my rates up just because I was behind with the others? Just trying to get my options straight. Worst case scenario is all. Thanks.

I would file for bankruptcy if I were you. There is no point in trying to pay them off if you don’t have the money to. Make sure you file for the chapter that rids you of the debt rather than makes you pay it off with no interest. I think that is Chapter 7, but I am not 100% sure.

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  1. z_o_r_r_o
    May 25th, 2009 at 07:10 | #1
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    I would file for bankruptcy if I were you. There is no point in trying to pay them off if you don’t have the money to. Make sure you file for the chapter that rids you of the debt rather than makes you pay it off with no interest. I think that is Chapter 7, but I am not 100% sure.

    References :

  2. wayalook
    May 25th, 2009 at 07:49 | #2
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    bankruptcy may be best but stays on your record 10 yrs. your husband must file with you. worst case is they chargeoff and send to collections. then maybe sue and get judgement. after that they can garnish wages put leins on your property etc. the 20k ones will probably get the leins. best case is they claim a loss on their taxes and sell the debt to cas who cant validate. you play the game until sol runs out. youll still get the calls but they cant do much to you.
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  3. Heaven Lee
    May 25th, 2009 at 08:34 | #3
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    Why don’t you get another job???
    You could file BK but that will really hurt your credit.
    References :

  4. Emma F
    May 25th, 2009 at 09:22 | #4
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    The credit card comapnies will not just charge off the debt. They will start calling you and eventually sue you. You need to get another job. Why would you want to keep sme of the little ones? What you need to do is sit down with your husband and do a new budget. You need to work as a team. You didn’t get into this mess overnight, you won’t gte out of it overnight.
    References :
    http://www.daveramsey.com

  5. Apollo
    May 25th, 2009 at 10:00 | #5
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    File bankruptcy. I know this is easier said than done but if you got your house and a car, you can manage your life with cash for a while until you resolve managing to get credit again. Plus 70 k is not a number that can be resolved even with extra payments.

    The moral of the story here is learning not to abuse credit cards, otherwise you will get out of this one just to get there again.

    Do not even think about keeping the little ones. What are you pretending??? You will get yourself in more trouble.

    Its not the end of the world, there is always light at the end of the tunnel.
    References :

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