100k cc debt!!! Ideas?

amother

Tue, Jun 27 2023, 2:10 am

No words really. Its just keeps piling up and as hard as Dh and I have been trying we've been hit with one bad luck after the other...

This debt is weighing us down like crazy.

Any lead how to try to get help and relieve some of it?

amother

Tomato

Tue, Jun 27 2023, 2:13 am

No help, just commiseration!

We have over 100k of debt, but in our case BH it is not all on credit cards, just 30k of it or so.

Wishing you miracles and peace of mind!

amother

Mayflower

Tue, Jun 27 2023, 10:08 am

Dave Ramsey. Pay off smallest debts first. Try to increase your income. His famous phrase "rice and beans". As in, no extras at all. And many items you think of as necessities, he will consider extras. Even look hard at items we need for religious life and speak to a rav if an exception can be made while you are cutting back so much. For example, if you usually only use shmura matza during pesach. Or if every male in your house usually has his own set of arba minim...

amother

Tue, Jun 27 2023, 10:09 am

amother Periwinkle wrote:

Have you spoken with a financial advisor?

Yes, like I said. Bad luck after bad luck Crying

no advisor can advise much on that...

amother

Oldlace

Tue, Jun 27 2023, 10:31 am

Do you own your home? Do you have equity in it? If you do you may be able to get a home equity line of credit payoff all your debt and only have 1 monthly payment with an interest rate that should be less than your credit cards and the payments are amortized over a longer period. You essentially combine all your monthly debt payments into 1 payment.

amother

Seashell

Tue, Jun 27 2023, 10:33 am

I think the first question is whether you have the ability to pay it off even slowly? If you aren't making enough to cover rent, food, utilities, and other essentials, how can you possibly pay off 100k in cc debt?

amother

Olive

Tue, Jun 27 2023, 10:38 am

O think a bunch of people will end up there with how things are going today. You need a plan written down and calculated out. If you can't do it yourself, get an adviser. The choices are self discipline or bankruptcy. Its a really tough place to be!!! I hope you figure a way out of it!!! It is very difficult, so sorry you are there.

amother

Moccasin

Tue, Jun 27 2023, 10:40 am

We were, still are actually, in the same boat. We were able to transfer a big chunk of it to ccs with 0% apr. Slowly paying that off till the promo expires. Working currently on transferring the rest of it. Wishing you good luck.

Highstrung

Tue, Jun 27 2023, 11:33 am

Call the cc company. Tell them you fell on bad times and see if they could reduce the interest to 0%. This way payments will go towards paying down the card instead of going towards the constant interest. Then make a payment plan with them that will be feasible for you. Example $500 a month etc. They lock the card and you slowly pay it down month after month.
I was at $28k on one card when I started this a few years ago and I’m down to $8 k . I’m just a year or two it’ll be paid off and I can’t wait . Slow and steady but I saw it lessen each month and brought a huge sense of relief.
But it won’t work if you don’t have the income to pay the monthly payments .

creditcards

Tue, Jun 27 2023, 11:37 am

amother Oldlace wrote:

I wouldn't advise. Don't risk losing your home if you can't pay.
Start by calling up each credit card company and ask them if they have any financial relief programs.

creditcards

Tue, Jun 27 2023, 11:39 am

Highstrung wrote:

Would you share which credit card company reduced to zero percent?

Highstrung

Tue, Jun 27 2023, 11:44 am

creditcards wrote:

Would you share which credit card company reduced to zero percent?

Chase Sapphire card . First DH was able to do it with his card and then I called and they were willing to do it for me too.
However they said that if I had any other Chase cards there was a chance they’d lock those too (which they didn’t and I was able to pay those off in full B”H) .

creditcards

Tue, Jun 27 2023, 1:52 pm

Highstrung wrote:

Nice, happy to hear that. Good to know which company is easy to deal with.

amother

White

Tue, Jun 27 2023, 2:21 pm

OP you have very good suggestions in this thread. If none are do-able for you, would you consider the bankruptcy route?

As an aside, credit card companies would rather get paid than get nothing, so it's worth it for them to take Highstrung's suggestion and reduce the interest rate to zero so you can pay it off, rather than you file for bankruptcy.

amother

Butterscotch

Tue, Jun 27 2023, 2:40 pm

Yes most ccredit card companies are willing to settle. You can ask each of them for a settlment.
There is also some gemach in Ny I saw advertising (that my sister used) to consodilate cc debt and reduce the interst rate to almost zero or zero. (My sister used and was greatly helped)

Highstrung

Tue, Jun 27 2023, 2:48 pm

amother Butterscotch wrote:

Keep in mind that settling with a credit card company can affect your credit score for a number of years .
Having them just make a payment plan and removing interest is not a settlement .

amother

Pewter

Tue, Jun 27 2023, 6:58 pm

Suggestions here may be good ideas too, but this is significant amount that I would think needs someone professional. It would all obviously depend on your income & credit rating. Sign up at CreditKarma.com for free account & it will tell you your credit score & options for credit cards, loans etc. There are companies that can settle up your debt - some are sketchy & will ruin your credit, or take part of the savings the credit card companies offer; some good companies out there too that can help - some are called "gemachs" but are a business; and then there gemachs / money loans that will lend you some money to pay off the credit cards for you so you not paying all the interest, but you will need to pay them the money back on monthly plan or have someone else who will pay for you if you cant make that payment.
With this much debt, I would advise speaking to a professional financial advisor.

amother

Pearl

Tue, Jun 27 2023, 8:02 pm

I think my first question would be, are you currently covering your monthly bills with your income or is the debt continuing to grow? And yes I highly recommend Dave Ramsey