23 and considering a Chap 7.....

[tnsltwn]

Well I am back. I last was on here in Oct. I thought things would change but unfortunately not. Here's my situation. I'm a personal banker (use my experience to help others) and make about $1500-1600 a month. I have a car payment for $375 and insurance that's $100, cellphone thats $85 and about $700 goes to CC's and loans. I have about $21-22K of CC debt in my name and my mom has $12K on her card because of the rate. I am in a pickle now because It's not getting lower. I'm not using them. My icing on the cake was a letter I got from Citi that said my 2.99% special rate was going to be going to 29.99%! I opted out and they said my standard rate would go to 24.99% Keep in mind before they offered me the special rate I had a standard rate of 11.15%! One thing I want to make known is that I have NEVER made a late payment on ANY of my cards! But with this latest Bulls*** Citi has pulled it's put my back against the wall. Of course I wish I had never used credit cards and just went to school instead of starting ON MY OWN! I do live at home but I need to get on with my life. I am not trying to walk away from my debt but I'm tired of this Catch-22. I used to work for a credit card company. They're thieves. They use Gangster Laws. Bottom line is even if I do file and I reaffirm my car it will show current payment for another 2 years and I'll still have to pay my mom's card but will release alot of pressure from me and ultimately make me happier. I just need a little advice from the pro's! Will telling my attorney about my mom's card be a issue or should I just leave it alone? Also my mom would co-sign in a heart beat for a apartment or a car loan if I needed to but she's got her hands tied and can't help me with any type loan or money to payoff my debt. So tips advice and comments are appreciated! I'm also going to speak with my local CCCS office on Thursday about a DMP but think that might be a lost cause as well. Worst part is if I wanted to apply for a loan to consolidate all my debt I'm told "You have too many balances and too many inquires" It's a total catch-22! UGH! HELP!!!!!


Thanks!

[music12]

if you are thinking about bk, first thing you should do is start paying rent - or "paying" rent to your mother. you will need that expense on your forms to do a chap7.

there are horror stories about DMP, they sometimes just take your money but your balances don't go down. they are thieves just like the cc companies. you could end up replacing one nightmare with another.

don't let your mother cosign for you; if you ever get in trouble, you won't be able to sleep at night knowing that they are going after her, which is exactly what they will do.

there are a huge number of people here who were forced into bk by the cc's increasing the rates just like happened to you. i would not consider filing bk on them to be "walking away" from debt; it's just telling these cc companies that there are things they just can't do to people.

[JRScott]

Yeah I'd be careful of any DMP, like said above most are scams.

I suspect based on what you've told us here you most likely are a Chapter 13 candidate. Unless you have other expenses not revealed. As music says paying rent to your mother and towards utilities if you don't know could possibly push you into a Chapter 7.

You might also try taking a financial planning course similar to what Dave Ramsey offers. Although it may not prevent bankruptcy it should help with future planning to stay out of one down the road.

[OhioFiler]

It appears you are a Chapter 13 candidate. I would let the debts go as long as possible without paying them, get a place to live, get some life insurance, get any expenses you can that are legitimate that keep you out of a 13THEN file a Chapter 7 if someone sues you.

[keepmine]

If the cc is in your mothers name only, it is no issue. She is responsible for the debt. You won't even list it on the petition.

Here's what I'd do. First thing you do is start getting on with life and that means making more money. As you say, even if you file bk and get those cc's debts discharged, you still can't support yourself. Find some pt job or try and get a better fulltime job. Does your current job offer health insurance benefits? Get yourself established before you file.
Stop paying all debt you wish to discharge and just reimburse your mother the minumum payments on the card in her name. That'll make the timing of filing relatively easy to avoid the preference payment issue. {We can get to that another time}.

[KLH547]

Having used both debt settlement and debt management plans in the past, my only advice is STAY THE HELL AWAY FROM THEM!! They are thieves! Having had my own run-ins with Citi in the past, I feel for you. I had set up a debt management plan and Citi accepted the terms. Then they continued to harrass me to make payments/set up a payment plan with them outside of the program as well. Plus my debt management plan payment continously went up every month . . . certains creditors would reject the proposed amount and the only way to get them to accept was to add more to the payment, it was a freakin' nightmare! I was terrified of bk but it's truly been one of the best decision I have made in a long time. I decided that peace of mind and sanity was worth so much more than stigma or pride. . .

Trust me, there are days when I miss my cc's really badly but then a situation presents itself that makes me glad they are gone. Our business credit card was recently "hacked" and they tried to use it at a Kmart in Miami to charge $802.00. Don't live in Miami, never even been to Miami. Discover called us, told us they denied the charge, that card was cancelled and they were issuing a new one right away. I thanked them and appreciated their diligence. Got the statement two weeks later and lo and behold, guess what was on there? The charge they had "denied"!! I called them up and read them the riot act - asked them why they were patting themselves on the back at catching the charge but then allowing it anyway?? They didn't like that much. The icing on the cake was that they had sent a letter stating their investigation was complete and the charge had been denied . . .
Having been in debt for a very long time . . . I got my first cc in college, I am appreciating the challenge of living within my means!!

That's my two cents!

[AshShep01]

Well I am back. I last was on here in Oct. I thought things would change but unfortunately not. Here's my situation. I'm a personal banker (use my experience to help others) and make about $1500-1600 a month. I have a car payment for $375 and insurance that's $100, cellphone thats $85 and about $700 goes to CC's and loans. I have about $21-22K of CC debt in my name and my mom has $12K on her card because of the rate. I am in a pickle now because It's not getting lower. I'm not using them. My icing on the cake was a letter I got from Citi that said my 2.99% special rate was going to be going to 29.99%! I opted out and they said my standard rate would go to 24.99% Keep in mind before they offered me the special rate I had a standard rate of 11.15%! One thing I want to make known is that I have NEVER made a late payment on ANY of my cards! But with this latest Bulls*** Citi has pulled it's put my back against the wall. Of course I wish I had never used credit cards and just went to school instead of starting ON MY OWN! I do live at home but I need to get on with my life. I am not trying to walk away from my debt but I'm tired of this Catch-22. I used to work for a credit card company. They're thieves. They use Gangster Laws. Bottom line is even if I do file and I reaffirm my car it will show current payment for another 2 years and I'll still have to pay my mom's card but will release alot of pressure from me and ultimately make me happier. I just need a little advice from the pro's! Will telling my attorney about my mom's card be a issue or should I just leave it alone? Also my mom would co-sign in a heart beat for a apartment or a car loan if I needed to but she's got her hands tied and can't help me with any type loan or money to payoff my debt. So tips advice and comments are appreciated! I'm also going to speak with my local CCCS office on Thursday about a DMP but think that might be a lost cause as well. Worst part is if I wanted to apply for a loan to consolidate all my debt I'm told "You have too many balances and too many inquires" It's a total catch-22! UGH! HELP!!!!!


Thanks!

Don't feel bad about your age, I am only 21 and filed a chapter 7. My story pretty much goes side by side with yours. The only difference is I do not live with my mother. But I wish I would have went to school, instead of doing everything backwards. Just think you are still young and you can bounce back from the BK.

[tnsltwn]

Thanks you all for the advice! I'm leaning toward BK. I see it as yes I am filing at the same time my friends are buying houses but everyone has a different path in life I've been trying to pay them back for over 2 years. I am gonna bite the bullet and do it. What's the worst that could happen? I have a BK on my credit report. I see it as being no better or no worse than having a bunch of collection accounts on my credit report. It's a hard lesson to learn. At the same time I have not had a girlfriend since high school because I wanted to be financially stable before I got hooked up with anyone. This should help my self esteem there. The only person who know I filed is me and anyone I apply for credit with. I will have my mom put me one a couple of her cards a couple months after I file and wont even have a card sent out. Just as an AB to help build my credit back up. Thanks again!

[tnsltwn]

Yes my current job does have alot of opportunity. I have health benefits, vision, 401K. I like it and will be able to put more effort into it and move up when my mind is freed of all this DEBT! Thanks!

[JRScott]

I don't think being an authorized user improves credit score anymore since that credit card reform bill earlier this year .

Still if you are at peace with the decision this could be the right choice for you. At your age you'll have plenty of time to spring back.

You know let me tell you something. Waiting til your financially stable can be the worst thing in the world. Because you never truly reach that in life I don't think. You always think you need a little more. This doesn't mean rush a relationship but if you see a girl you like ask her out and see what happens. Otherwise you could turn around and be 40 one day and still alone.

[tnsltwn]

Another thing I'm worried about is the preferred payment thing. I pay my mom's card because it's my debt. I am a AB and it shows on my credit report. Because I am a AB it shouldn't matter and I can say that she added me and my intention was to try and get a loan to consolidate but they wouldn't approve me. Thoughts?

[OhioFiler]

Another thing I'm worried about is the preferred payment thing. I pay my mom's card because it's my debt. I am a AB and it shows on my credit report. Because I am a AB it shouldn't matter and I can say that she added me and my intention was to try and get a loan to consolidate but they wouldn't approve me. Thoughts?

Your mother is a creditor of yours. You technically must list the debt you owe her(even though it's on a credit card).

[music12]

what's an "AB"?

[tnsltwn]

Authorized Buyer.

[music12]

oh! i'm used to it being called "authorized user."

anyway, that makes only your mother responsible to the cc. it's not your debt so you can't discharge it.