Hey everyone, I’m in a tough spot and could use some advice. I messed up my finances pretty bad when I was younger. Made some dumb choices with car loans, credit cards, and now I’m drowning in debt. My credit score is shot (461 FICO) and I’ve got a mix of current accounts, past due stuff, and collections.
The good news is I landed a great job making 70k a year. I’ve got about 4k left over each month after expenses. Now I’m trying to figure out the best way forward.
Should I file for Chapter 7 bankruptcy if I qualify? Or should I buckle down and try to pay everything off, maybe negotiate some settlements?
I know I screwed up, but I really want to fix this. Is bankruptcy worth it? What are the pros and cons of each option? Is there any chance I could get my credit score up to 670 in a year?
Right now, even secured cards from Capital One and Discover are turning me down. Any advice would be super helpful. Thanks!
With a 4k monthly surplus, you’ve got options beyond bankruptcy. Focus on aggressive debt payoff. Start with the debt snowball method – knock out the smallest debts first for quick wins, then avalanche the rest by targeting the highest interest rates. Negotiate directly with creditors for settlements on old accounts, aiming for 40-60% of the original balances.
For rebuilding credit, secure a card as soon as possible. Options like Self Lender or Chime are good choices even with your current score. Use them for small purchases and pay in full monthly so you can qualify for better cards later.
While reaching a 670 credit score in a year is ambitious, consistent on-time payments and low credit utilization are key. Also, dispute any inaccuracies on your credit reports, as older negative items will eventually drop off. Bankruptcy remains a last resort, especially given your steady income and potential to recover with disciplined repayment.
Man, that’s a tough situation. Been there, done that. Bankruptcy might seem tempting, but with that new job and extra cash, you’ve got options.
Have you thought about tackling your debts head-on? With 4k left over each month, you could make some serious progress. Maybe start with the smallest debts to get some quick wins? It’s not gonna be fun, but it might be better than bankruptcy in the long run.
As for your credit score, reaching 670 in a year is a stretch, not gonna lie. But hey, stranger things have happened. Focus on paying everything on time and keeping your credit usage low. It’s slow going, but it does make a difference.
For credit cards, have you tried OpenSky? They don’t do credit checks for their secured card. It’s not great, but it’s a start.
Whatever you decide, just remember it’s a process. You didn’t get into this mess overnight, and you won’t get out of it overnight either. But you’re on the right track just by asking for help. Good luck, man.
Hey Samuel98, sounds like you’re in a tough spot but kudos for landing that great job and trying to turn things around! 
From what I’ve seen in the market lately, bankruptcy filings are up, especially among younger folks dealing with high-interest debts. But with your new income, you might have some solid options for digging out without going that route.
Have you looked into debt consolidation loans? With interest rates climbing, they’re not as attractive as they were a year ago, but some online lenders are still offering decent terms for folks rebuilding credit. Might be worth shopping around.
One thing to keep in mind - the CFPB has been cracking down on predatory lending practices lately. So if you do pursue debt settlement or consolidation, make sure you’re working with reputable companies. There are some shady operators out there taking advantage of people in tight spots.
Whatever you decide, just remember it’s a marathon, not a sprint. Your credit score won’t skyrocket overnight, but consistent on-time payments and lowering your credit utilization can make a big difference over time. Hang in there!