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RHIT_Grad_1964 t1_iy9t1ej wrote

This will probably get down voted but it will probably work.

Stop making payments on the cards, post minimum on anything small you owe. Your income is good I guess, not sure if it’s SF good though.

After a couple months of taking the payment money out of checking as cash, call the cards and say you can’t afford them, considering bankruptcy but want to pay your bills. Most of them have a department just for you. They can delete the interest and fees and agree on a payment schedule so you pay off the debt by paying maybe 40% of the loan. With your balances I doubt you’d have much trouble getting on these programs.

Once they all agree and you have v everything in writing, deposit the cash you saved and pay off all the smaller loans then pay the 2-5 years of bills, whatever you agreed to until your debt free.

They companies that offer debt relief use a version of this program and charge you a lot of money.

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leg_day t1_iyag4bq wrote

To be clear, this version also puts negative marks on your credit report. "Paid less than agreed" is almost as severe as bankruptcy.

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RHIT_Grad_1964 t1_iyagrrm wrote

It can. When you’re talking with the CCs, offer a few bucks more to get a clean payoff if needed. This isn’t guaranteed to save you money or not hurt your credit, but it could work.

I wouldn’t call this a great idea but if you’re swimming in debt you don’t have much to lose.

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patmorgan235 t1_iyahxwl wrote

If I owe the bank $1000 I have a problem, if I owe the bank $100,000 the bank has a problem

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RHIT_Grad_1964 t1_iyak64q wrote

That is basically what I’ve said. That’s why the CCs will accept lower amounts will a smile and leave your credit clear.

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TheGunStays t1_iyaxplw wrote

Sure, on this one, specific debt.

But the bank/CC lender will also have the leverage to completely ruin your financial future for the next 7-10 years. The bank will likely be fine over that timeframe - trust me.

If you're like 19, bankruptcy/default may not be a terrible option. But if you're in your late 20's/early 30's, it will likely be one of the most significant events of your life - financial or otherwise.

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