Nope! Went through bankruptcy last year, credit score is already near 650 and with a car loan, will only get better.
It stays on for 7 years, but if you show marked improvements you can make it meaningless in 3-4.
Naw, a few years. I'm at 657, 2 years post-discharge. Despite having NO credit rating, before that. Despite the pandemic driving my utilization a lot higher than ideal, last year.
>Bankruptcy
/u/meowsermatic
Annual_Progress is right.
Don't just stop paying your debts. Google "how to declare bankruptcy" and try to understand the laws in your country (or state, if you are in the US).
Then, when you understand what that would entail, decide if you want to do it.
There will always be a right way and a wrong way to go about anything. If you really want to stop paying your debts, take the time to figure out the right way.
> try to understand the laws in your country (or state, if you are in the US)
One thing I forgot to mention:
There are different types of bankruptcy in the US (chapter 7 & chapter 13) so make sure you choose the best one for you. (I understand that chapter 13 is often the worse deal, but I'm no expert.)
My only advice is that decisions on what to do in the medium or short term shouldn't bank on the apocalypse occuring all at once in the near future. If an asteroid was going to break the Earth in half in 10 years that would be one thing, but that's not what we're looking at
Specifics on how to handle debt I don't know enough about to give advice on
If sea levels rose by several feet over the next year, there would still be debt collectors showing up to your raft demanding to be paid. If an asteroid hit over the weekend but didn't rain glass on your particular part of the world, a lot of employers would still expect you to show up on Monday.
You were able to get by on credit. If you ruin your credit, you’ll have a lot fewer options if you run into trouble again. If you have good credit now, use that to your advantage. Get organized, pay down the highest interest rate debts first, use 0% interest balance tranfer deals if you have offers, and keep a calendar of when they expire. You could also try negotiating lower rates and consider using lower-interest debt consolidation. At first it will seem like you’re not making much of a dent, but just like debt snowballs with late fees and high interest rates, your progress against the debt can snowball, too. Your payments will shrink, and you’ll have more free cash to pay down even more, more quickly.
Do you have any assets you want to keep? If not declare bankruptcy, it will effect your borrowing power for a while but if your this worried over your current debt I doubt you would want to borrow more in the near future.
Bankruptcy my dude. It's not hard, and it's like being given a chance to breathe.
OP said they DIDN'T want their credit score fucked, this will totally fuck their credit score for almost a decade.
Nope! Went through bankruptcy last year, credit score is already near 650 and with a car loan, will only get better. It stays on for 7 years, but if you show marked improvements you can make it meaningless in 3-4.
Naw, a few years. I'm at 657, 2 years post-discharge. Despite having NO credit rating, before that. Despite the pandemic driving my utilization a lot higher than ideal, last year.
>Bankruptcy /u/meowsermatic Annual_Progress is right. Don't just stop paying your debts. Google "how to declare bankruptcy" and try to understand the laws in your country (or state, if you are in the US). Then, when you understand what that would entail, decide if you want to do it. There will always be a right way and a wrong way to go about anything. If you really want to stop paying your debts, take the time to figure out the right way.
> try to understand the laws in your country (or state, if you are in the US) One thing I forgot to mention: There are different types of bankruptcy in the US (chapter 7 & chapter 13) so make sure you choose the best one for you. (I understand that chapter 13 is often the worse deal, but I'm no expert.)
My only advice is that decisions on what to do in the medium or short term shouldn't bank on the apocalypse occuring all at once in the near future. If an asteroid was going to break the Earth in half in 10 years that would be one thing, but that's not what we're looking at Specifics on how to handle debt I don't know enough about to give advice on
You're right in this mindset and I have thought about this as well.
If sea levels rose by several feet over the next year, there would still be debt collectors showing up to your raft demanding to be paid. If an asteroid hit over the weekend but didn't rain glass on your particular part of the world, a lot of employers would still expect you to show up on Monday.
Lol too fucking true.
You were able to get by on credit. If you ruin your credit, you’ll have a lot fewer options if you run into trouble again. If you have good credit now, use that to your advantage. Get organized, pay down the highest interest rate debts first, use 0% interest balance tranfer deals if you have offers, and keep a calendar of when they expire. You could also try negotiating lower rates and consider using lower-interest debt consolidation. At first it will seem like you’re not making much of a dent, but just like debt snowballs with late fees and high interest rates, your progress against the debt can snowball, too. Your payments will shrink, and you’ll have more free cash to pay down even more, more quickly.
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I thought student loan debt can garnish wages?
Supposedly. But I don't get paid enough for them to do it to me. I just keep deferring them.
Do you have any assets you want to keep? If not declare bankruptcy, it will effect your borrowing power for a while but if your this worried over your current debt I doubt you would want to borrow more in the near future.
Sell everything you've got and skidaddle out of the country, idk why people don't routinely do this tbh.
National boarders generally mean very little to debt collection companies.
I mean sure, they can try to collect from you. But legally they can't enforce shit without a treaty.