Recently divorced and left with about $40,000 in credit card debt due to helping my ex-husband start his now lucrative company. I’m not bitter! I am drowning here now, however.
It’s about ten credit cards with APRs spanning from 14% all the way up to 29.9%. I can only barely afford the minimum payments and realize that every month the debt grows due to the interest.
My credit limit is basically maxed out. I saw a bankruptcy attorney who informed me that I only qualify for Chapter 13 as I receive child support and alimony in the total sum of $6,000/month for the next two years therefore my income is too high – even though I can not afford to pay this debt down at all.
I attempted to secure a personal loan and as you know that is impossible. I’ve researched credit consolidation and can’t work with Lending Tree bc of my now bad credit score which is probably around 500 if not worse.
Finally, I decided to simply default on four of the worst cards. It’s been three months. These cards have high interest rates and the interest is about $78-$98/month on each one! I am attempting to negotiate with the cards myself as they call me at least three times per day.
I explain to them I will simply default if they do not work out a “hardship” program with me and they tell me I do not qualify and goodbye.
Several times I’ve been hung up on when I’m only trying to work out a deal. I assume this is because they would make more money by selling their debt. Tell me why the big banks get bail outs and I can not? I wish I had an answer.
What is the best option? Bankruptcy, a miraculous credit consolidation, simply default, or continue to pay only the minimum payments and watch my debt grow until I find a job?
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