Credit is amazing if you know how to use it to your advantage. Good on you 🙌 Personally, since I have quite a past with my cards, I can’t risk using them as often as someone in your position might. But I’m with you on the points when you can get them. The only card I use regularly and carry a balance on is a travel points card.

Amazing!!! Congrats on your house!

BK is a challenging road to walk down, but I’m sure you agree a much better one than the sleepless nights and hair falling out that precede making the decision. I hope posting our experiences on here shows that speedyish recovery is definitely possible and relieves a bit of the stigma 🙏

Thank you! And yes, it was WORK. After the 1st year I got a secured card through Capital One for $500. With good credit usage they eventually refunded my money, turned it into a “real” card and increased the limit. Every 6 months or so they increased it, and after about 2 years I applied for another Capital One card. Now I apply for 1 -2 new cards per year with different banks and have been approved for all with increasingly higher limits. I use them once a year for small things and pay them off immediately. I only carry a high balance for big purchases - furniture, travel, car repairs, unexpected medical - on one card with zero interest and throw buckets of money at it monthly. Which I can afford to do because I’m no longer in debt!

I also have a student loan which wasn’t forgiven in the BK. This has undoubtedly helped me establish a solid fixed payment history. Never been late or missed a payment in 10 years.

Bankruptcy isn’t just about getting rid of debt. It’s about a massive shift in understanding money and its psychology - particularly the psychology behind credit usage. The banks WANT you indebted - that’s how they make their money.

I’ve learned the hard way that cash truly is king. If I don’t have it I don’t spend it, period. Unless it’s an absolute emergency I have no reason to run my plastic.

This is amazing, amazing advice. Well put! I hope OP is able to follow this to a T and be rid of their drowning debt.

But I also want to share that it’s possible OP doesn’t make too much money for Chapter 7. It is definitely worth investigating with a competent BK lawyer. I make twice as much and had a simular amount of debt at one point but still qualified. The trick was finding the right lawyer. There are some very, very shady BK lawyers out there who will prey on your vulnerability, but the good ones will artfully run your numbers, charge you fairly and lift you up emotionally.

OP, 100% explore the settlement option, but don’t be put off by exploring bankruptcy, too. I’m 5 years out with several credit cards - all but one has a $0 balance - and a credit score in the very high 700s.

You ARE worthy and it WILL get better.