I've been living my life on credit cards for the past 12 years.

The Something Awful Forums > Discussion > Ask/Tell > Business, Finance, and Careers > I've been living my life on credit cards for the past 12 years.

Raldikuk: Apr 7, 2006; I'm bad with money and I want that meatball!

metallicaeg posted:

It's a regular Visa that gets gas discounts. It's a catch for everything - groceries, any other food, etc.
52.5 gross, and the majority of that debt is on low interest accounts - 2.9% for the 26k, 7% for the 4700, and 10% for the other 4700 account. I was really hoping to avoid bankruptcy. Between student loans that went into default many many years ago, to a stolen identity leading to fraudulent accounts, to the previously 95% across the board card usage, I had worked my credit score from lol to nearly 700 FICO. Didn't want a bankruptcy tanking that and being a mark on there for years to come.
I don't have a response to that which would make it sound less absurd than it is.

Why does your credit score matter? What do you plan to use a high credit score for? The reality is that you can come out the end of bankruptcy and still have a 700 credit score. It really depends on what history and current accounts survives the BK. If you already have a solid history of closed accts that were in good standing, that will still port over since those won't be discharged. If you keep any loans open then those will also appear. But the thing you really need to ask yourself is what do you need credit for within the next few years where the credit score really matters. The big risk of using BK is that if you haven't solved the root cause of why you are in your current situation, then you will be back here in a few years. If you truly have worked on things and can live within your means but the debt servicing is too much, then BK will be a life saver.

Also keep in mind if you're worried about obtaining lines of credit that it is still possible post BK. The big question would be the interest rate charged; which you're already getting reamed on.

# ¿ Sep 20, 2018 21:02

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# ¿ May 14, 2024 00:54

Raldikuk: Apr 7, 2006; I'm bad with money and I want that meatball!

At the very least schedule a free consultation with one to go over the basics; like how to go about keeping your car.

# ¿ Oct 12, 2018 00:36

Raldikuk: Apr 7, 2006; I'm bad with money and I want that meatball!

metallicaeg posted:

Well I'll have to re-do it now, but pre-bankruptcy consideration it was:

+2960
-100 Newegg payment
-850 mortgage
-40 meager house/car/vacation savings
-150 car payment
-100 Amazon card payment
-~450 monthly utilities/phone/internet/etc
-600 PSECU card payment
-300 Sheetz card payment
-320 Discover card payment

I suppose my immediate next steps are to more or less stop making payments on those cards, open a new bank account somewhere and start to move what little cash I have over and the direct deposit, and save up the money I'd be putting toward card payments into paying off the $1500 or so in lawyer and filing fees early next year, assuming I clear the means test for a chapter 7.

After it's all done I'd imagine I should crank up my 401k contributions as I have a pitifully small amount in there and am currently only tossing $25/week into it, pay off the car note, and start to build up my savings goals: emergency fund to cover 6 months in expenses, a house/car repair/future down payment fund, and a vacation/date night fund so that stuff can be properly budgeted.

Even if you don't pass the means test you probably can still file; you just have to do a lot more work to prove it. It's also based on the last 6 months pay, so keep that in mind.

If possible I would definitely increase your 401k ASAP since that is protected under BK.

Edit: And by pass I was referring to the automatic stage of it where you just need to be below your state's median income for your family size. Even if you're not, you likely will still be able to pass the means test it just will take more work.

Raldikuk fucked around with this message at 22:04 on Oct 26, 2018

# ¿ Oct 26, 2018 22:00

The Something Awful Forums > Discussion > Ask/Tell > Business, Finance, and Careers > I've been living my life on credit cards for the past 12 years.