Thank you in advance for your time!
I’m 26 and in over my head. Over the past year I’ve budgeted each month in great detail, thinking I could work it out myself. But unexpected expenses, bad decisions and a failed business have left me further in debt.
As you can see from the numbers below it’s certainly not cheerful. I’ve minimized expenses best I can without breaking leases. Yet only being able to make minimum payments, only covers the interest each month. I’ve contacted my bank about lowering interest rates and they say I’m currently getting the most competitive rate. I’ve applied to online banks and local credit unions, for a personal loan to consolidate. But my debt to income ratio and unsecured balances are always their explanation for rejection.
I have been unable to create a safety net or save for retirement. I’ve spoken to family multiple times and no one is in a place to help. When I inquired with a lawyer about bankruptcy, they said my income is too high for Chapter 7. And at the time, repayment of Chapter 13 wasn't drastic enough to be out-weigh the longterm effects.
Do I stop making payments on some debts to try and get others payed down?
Do I reconsider bankruptcy?
In 13 months, the personal loan will be repaid and I can redirect those payments to credit cards. Do I sit and wait for that to happen?
I’m open to extreme measures, pretty desperate at this point. Any advice will be considered! Thank you.
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5 Credit Cards = $35,000
$2,050 Monthly Minimum Payments averaging 24.7% APR
1 Personal Loan = $12,700
$1,025 Monthly Payments at 24.6% APR
2 Federal Student Loans = $33,800
Currently Deferred til January with 4.75% APR
Monthly Totals
$4,112 Salary after deductions ($75K Annually)
$3,075 Debt Payments
$1,664 Living Expenses
Submitted October 10, 2018 at 10:52PM by rye_bread92 https://ift.tt/2PqmIji
