Divorced and lived off of savings. Started a business with savings and credit cards (cc). Looked for jobs and could not find one. Right after divorce, I obtained my masters. Living off of cc now. Have a rental house in another state with a tenant. Had great credit for 15 years. It has dropped 100 points this year.
As of now I’m living off my credit cards and bankruptcy seems like a strong possibility. I’m about $31,500 in cc debt, $8000 student loans (I know not forgiven), and my mortgage. Will my bank hold me responsible for the debt I have on their cc (Visa) since I do my banking with them? If/when I file bankruptcy, will I lose my house since it is a rental? I have no steady income and I’m still paying my cc bills with cash advances. I also plan to start my PhD the first of next year.
Thank you for your help.
Here is what I know for certain, if you don’t do something to change the current system it is not going to end well at all.
Using cash advances to get by is a time bomb that will explode.
You can use the free How to Get Out of Debt Calculator to review your options.
But you need to come up with a plan on how you are going to get by once your cards are maxed out, closed, or discharged in bankruptcy. Simply dealing with the debt alone is not sufficient.
Please post your responses and follow-up messages to me on this in the comments section below.