Question:
Dear Steve,
I am trying to avoid chapter 7 or 13 but my credit card companies won’t lower my rates. I am looking for a real way to lower the APR so I can afford the payments. I had 750+ credit rating for 20 years now I am struggling to keep 670 and can’t get a car loan that I need.
Over 100K credit card debt due to health bills, loss of income and chronic health problems over the last 6 years.
I don’t want to file 7/13 because I need to be able to help my son get loans for college in just a few years.
Paula
Answer:
Dear Paula,
It sounds like your situation is rather desperate based on the amount and type of debt you have. I seriously doubt that simply lowering interest rates is going to help you make ends meet but if you want to try that route than you should look at a credit counseling solution.
But it sounds like you’ve been using credit to help make ends meet and this has been ongoing. It just so happens that bankruptcy is the least expensive and fastest way out of insurmountable debt.
And filing bankruptcy is so misunderstood by so many people. They want to avoid it but more people should read Those That File Bankruptcy Do Better Than Those That Don’t.
Before you worry about helping your son get loans for college, you should really focus on repairing your situation first. This is like one of those situations where the flight attendant tells the parent to put on their mask in case of emergency. If you don’t fix your problem first, before you know it you will find yourself retiring broke and becoming a financial burden on your son.
If you want to better understand the economic cost of repaying your debt instead of turning to bankruptcy to get you back on your feet as soon as possible, then use this online calculator.
You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.
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