I'm considering stop paying my credit cards

[Rufian]

I have about $47k in credit card debt and I'm paying $1700 every month on minimum payments to all credit cards. I only make 2700 a month. Literally almost my whole paycheck goes towards it.

 

The remaining is for my car insurance, car loan, and living situation, after these expenses. I only have maybe $300 extra each month. I live almost rent free in my dads apartment, but pay maintenance and other stuff.

 

I'm literally getting destroyed by interests but is my fault for using credit cards. 

 

Most of my credit cards tho are under 3000 with some being at 5-6k

 

My plan is to stop paying all the lower amount ones and keep the few 5k to avoid being used potentially as at 5-6k the chances of being sued are higher 

 

I don't know if I would qualify for bankruptcy tho

[MarvBear]

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[Flyingifr]

13 hours ago, Rufian said:

I have about $47k in credit card debt and I'm paying $1700 every month on minimum payments to all credit cards. I only make 2700 a month. Literally almost my whole paycheck goes towards it.

 

The remaining is for my car insurance, car loan, and living situation, after these expenses. I only have maybe $300 extra each month. I live almost rent free in my dads apartment, but pay maintenance and other stuff.

 

I'm literally getting destroyed by interests but is my fault for using credit cards. 

 

Most of my credit cards tho are under 3000 with some being at 5-6k

 

My plan is to stop paying all the lower amount ones and keep the few 5k to avoid being used potentially as at 5-6k the chances of being sued are higher 

 

I don't know if I would qualify for bankruptcy tho

You are a classic no-asset Chapter 7 Bankruptcy just waiting to be filed with a bunch of high interest creditors just waiting to sue you.

 

You didn't say what your income source was (Social Security, Pension,Wages, or other) so I cannot give you and advice on whether the creditor suits can end up in an actual garnishment. Also, what State do you live in? A couple of States do not allow wage garnishments.

 

If you stop paying any credit cards, it is possible the remaining card issuers will very likely see it and either close the account altogether, or balance chase, which means reduce your credit limit to just above the balance you owe, and reduce your credit limit as you pay the balance down. Either way, you can expect to lose the use of most or all of your credit cards. Sorry, but any plan must be "all or none" - pay them all or stop paying them all and file Bankruptcy.

[cashnocredit]

If you decide to stop paying them but want to rent a studio apt. in the near future, consider applying before your credit is shot as they almost certainly will run your credit. Rent should be a lot less than the credit card payments. Then move and live with debit cards for a while to get used to matching outgo to income. Then, after BK, get a secured card or two at low limits just to restart your credit in the future. Will help a ton to get new credit after the negatives drop off.

[dvd]

On 8/29/2024 at 6:16 PM, Rufian said:

I have about $47k in credit card debt and I'm paying $1700 every month on minimum payments to all credit cards. I only make 2700 a month. Literally almost my whole paycheck goes towards it.

 

The remaining is for my car insurance, car loan, and living situation, after these expenses. I only have maybe $300 extra each month. I live almost rent free in my dads apartment, but pay maintenance and other stuff.

 

I'm literally getting destroyed by interests but is my fault for using credit cards. 

 

Most of my credit cards tho are under 3000 with some being at 5-6k

 

My plan is to stop paying all the lower amount ones and keep the few 5k to avoid being used potentially as at 5-6k the chances of being sued are higher 

 

I don't know if I would qualify for bankruptcy tho

 

Have you looked into a non profit debt management plan (DMP). They can consolidate your payments and have your interest rate reduced to zero, in most cases. It also has little impact on your credit.

 

https://www.nfcc.org/resources/debt-management-plans/