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$170K credit card debt, no way to pay off as of now

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I need help on knowing what my options are.

I have $170K credit card debt. I am not a big spender and have pretty good credit at 740 now. I make $100K or so a year. I drive a 14 years old Camry with 240K miles. I don’t have a house. I don’t plan on buying a house or a car soon so a dip in credit temporarily will not affect me much.

I invested that money in crypto and crypto tanked 70%.

I want to pay back the banks but I will need more time. I am hoping when cypto pick up end of 2018 or early 2019, I will be able to pay back credit card companies.

What are my options? My friend told me the only time credit card companies will negotiate with you is when you are behind payments for at least 3 months.

Do I just skip paying for 3 months and negotiate with them?

Or I can go to nationaldebtrelief but they charge up to 25% in fees.

I want to pay back the banks and stop the credit card interests from compounding.

Right now I have a mixture of personal and business credit cards.

I have these following cards in

Business credit cards:

American Express

Chase-business credit card

US Bank-Business

Personal credit cards:

Barclay

Citicard

East West Bank

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Although they will be able to determine very quickly that you effectively traded those lines of credit for the equivalent of a cash advance, do NOT volunteer what the funds went towards. You will find EVERYTHING shut down in a hurry.

 

Banks are showing that they don't have a lot of patience right now, as evidenced by threads around here where people with ZERO issues are seeing cards shut down.

 

Right now, your best hope would be to let them know you are having issues. They MIGHT cut you a break on the APR for a period of time but they are ALSO going to close the accounts to new purchases.

 

Your other two options are essentially to make at least the minimum payments and voluntarily curb your spending OR to file BK. However, in the BK, expect that your filing will be contested in a manner that forces you to a Chapter 13 repayment plan if anything is approved at all.

 

Sadly, this is what has made it difficult for responsible users to make purchases of the currencies using cards...they should ONLY have been used to buy and pay the account off in full each month. Otherwise, the card is being treated in the same manner as people treated their houses a decade ago. And I have little sympathy for those that are no longer in those homes...

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Just curious...WTF did you buy for that kind of cheese....? I'm asking a serious question........cause I wanna know how that much debt comes about. I worried about 20k in cc debt.

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Just curious...WTF did you buy for that kind of cheese....? I'm asking a serious question........cause I wanna know how that much debt comes about. I worried about 20k in cc debt.

 

I have $170K credit card debt.

I invested that money in crypto and crypto tanked 70%.

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With that amount of debt I think they will quickly sue you if you stop paying. I don’t see them messing around with this.

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If this guy is for real I'm starting to understand why some banks put the kibosh on crypto CC purchases.

 

It's not investment. It's gambling and the prime directive for gamblers is: Never gamble with money you can't afford to lose.

 

BTC is only down about 60% from its peak, Ethereum is down over 70%. Well, someone has to buy near the peak.

Edited by cashnocredit

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I don't really have an interest in piling on someone's misery ... however, a phrase that includes "soon parted" is running through my mind ...

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I've continued mulling this thread over for 20 min now. I prefer to offer something constructive ...

 

"CV" alludes to the option that has the potential to yield the most favorable outcome: Namely, that you buy time by keeping the accounts current, making minimum payments. If you instead let these balances become delinquent, I expect you'll have a nasty situation on your hands in short order.

 

Your lenders might be willing to come to some type of longer-term repayment arrangement if there were real prospects of you repaying the debt in a 2-year timeframe. But I'd guess that realistically, you have about $50k in annual "disposable" income (after paying housing/food/necessities). Assuming some type of modest interest rate on the debt, at best you're looking at repayment in 4 years. As others have pointed out, banks aren't at their most patient disposition just now. One or more lenders might assess your situation and decide the best option is to move quickly to recover what they can.

 

So, assuming that the favored option is to keep up minimum payments until such time that it's easier to stomach liquidation of your crypto position, the task is to evaluate how realistic this scenario is. I'll be impressed if you tell us that you're carrying the entire debt at 0% promotional terms. (I'll also be impressed if you tell us that your overall revolving utilization is under 30%)

 

Viability of interim monthly payments depends on debt specifics: If at 0%, then you might get by with minimums of 1%, or $1700/mo. I'd guess that you'd likely be living pretty "thin" in taking on those payments, but in theory it seems "doable".

 

However, if your debt were subject to, say, 12% APR finance charges, then your minimum monthly payments might well double to something like $3400/mo. Setting aside the fact that keeping up with those payments would likely make you feel like you're now in "debtor's prison", the interest payment outflow could possibly qualify as "throwing good money after bad".

 

As was suggested in this thread, crypto-currency speculation has no reliable outcomes. Valuation might come back to where you bought within 6 mo; it could easily not find it's way back even after 3 years, or possibly 5. My point is that you have to have a serious discussion with yourself to quantify at what point is it appropriate to cut your losses (and choke down a massive s**t sandwich).

 

Lay out more specifics and I and/or others will offer our best thoughts ...

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I've continued mulling this thread over for 20 min now. I prefer to offer something constructive ...

 

"CV" alludes to the option that has the potential to yield the most favorable outcome: Namely, that you buy time by keeping the accounts current, making minimum payments. If you instead let these balances become delinquent, I expect you'll have a nasty situation on your hands in short order.

 

Your lenders might be willing to come to some type of longer-term repayment arrangement if there were real prospects of you repaying the debt in a 2-year timeframe. But I'd guess that realistically, you have about $50k in annual "disposable" income (after paying housing/food/necessities). Assuming some type of modest interest rate on the debt, at best you're looking at repayment in 4 years. As others have pointed out, banks aren't at their most patient disposition just now. One or more lenders might assess your situation and decide the best option is to move quickly to recover what they can.

 

So, assuming that the favored option is to keep up minimum payments until such time that it's easier to stomach liquidation of your crypto position, the task is to evaluate how realistic this scenario is. I'll be impressed if you tell us that you're carrying the entire debt at 0% promotional terms. (I'll also be impressed if you tell us that your overall revolving utilization is under 30%)

 

Viability of interim monthly payments depends on debt specifics: If at 0%, then you might get by with minimums of 1%, or $1700/mo. I'd guess that you'd likely be living pretty "thin" in taking on those payments, but in theory it seems "doable".

 

However, if your debt were subject to, say, 12% APR finance charges, then your minimum monthly payments might well double to something like $3400/mo. Setting aside the fact that keeping up with those payments would likely make you feel like you're now in "debtor's prison", the interest payment outflow could possibly qualify as "throwing good money after bad".

 

As was suggested in this thread, crypto-currency speculation has no reliable outcomes. Valuation might come back to where you bought within 6 mo; it could easily not find it's way back even after 3 years, or possibly 5. My point is that you have to have a serious discussion with yourself to quantify at what point is it appropriate to cut your losses (and choke down a massive s**t sandwich).

 

Lay out more specifics and I and/or others will offer our best thoughts ...

 

 

Thanks for offering constructive advice. here it is

 

Bank 0% ends Balance Total Amount Total Credit Personal/Business % utilitization Available Credit Balance Transfer Fee 1 American Express Business 4/8/2018 $23,400.00 $24,200.00 business $800.00 2 Barclay 1/3/2019 $13,824.41 $40,000.00 Personal 35% $14,000.00 3% minimum fee, 3 Chase credit card Business Veritas Associates 4/5/18 $27,958.00 $34,000.00 business $5,760.00 4 Citicard ending personal 8/1/2018 $37,958.00 $40,000.00 personal $5,408.00 5 Elan Financial Services (East West Bank) 2/2019 $8,839.15 $14,000.00 Personal 35% $4,900.00 3.99% or $339.15 6 US Bank Business 1 7/1/2018 $22,836.00 $25,000.00 business $1,225.00 7 US Bank Business 2 11/1/2018 $8,211.08 $10,000.00 business $1,705.92 8 wells fargo bank 10/22/2018 $15,499.71 $40,000.00 personal 35% $14,000.00 3% minimum fee, $420 Total $158,526.35 $227,200.00 $47,798.92

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With that amount of debt I think they will quickly sue you if you stop paying. I don’t see them messing around with this.

My debt is spread over 8 cards. See the breakdown in my other reply. I read in myfico.com, they could only get 25% of my wages.

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Ok. I'm gonna cut to the chase here and offer a solution that works.

 

Since crypto didn't work out for you, it's time to go in the other direction and earn some fast money the old school way.......

 

Do you live near any truck stops?

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I read in myfico.com, they are advising don't make payment for 6 months, settle for 40% but beware of 1099. I guess that's my plan. If I have the money I would pay banks back in full.

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Plan your finances to live on 75% of your take home income. Put the other 25% towards the debt. If it doesn't cover the minimum payments, try to renegotiate so it does. Worst case scenario is they sue you and garnish your income, and the most they can take is 25% anyway.

 

We usually suggest arbitration for credit cards, but in this case only the personal cards would be a go. Business cards have arb too, but the fees are a whole different ball game. You could be looking at 1500 or more just to start the case, and you get stuck with half the cost of what happens after that. Not worth it.

 

According to your numbers, you should have 30% of that 170 in crypto available. It will be available to your creditors too, if they sue you. With your income and assets, you probably don't qualify for CH7. Like others have said, there is no magic way out of this mess.

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You might want to make an appointment with a bankruptcy lawyer to find out more information about your options. The more information you have about all available options, the better.

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Find a 2nd job. Drive Uber/Lift. Put entire earnings plus part of take home from regular job into repaying debt. Crypto schemes are simply digital Ponzy scheme. Thank you for reminding people how dangerous these things are. Good luck. Lesson learned

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