Current Events > Is it ever a good idea to not pay credit card debt?

(+) Yeah! (+)

I have 6 credit cards and I'm up to my nose in debt. Have about 9000-10000 in total debt.

The late fees and interest are killing me. I don't make enough to every catch up to the payments. I'd need to find a new job.

My biggest credit cards in debt are about 5000 and 2300. The $2300 debt card had shot up to that from about 1600 from interest and late fees alone. They are about to write it off on October and send it to collections, unless I make the minimum payment.

I have 4 other cards with 450, 950, 520 and 1079 in debt. I think I can manage those with my income. I have about 411 in savings and every check I get I'm planing on putting 75% in savings.

I don't have any other bills except credit card bills since I still live with my mother. I was thinking since my current jobs don't pay enough for me to make any progress on the two larger credit cards, and I don't possibly have enough money to settle them, should I just ignore them and let them be charged off to collections and just focus on the ones I can pay? I've been in this situation for about a year and I don't want to see myself struggling with the same credit cards for the next 10 years. At a certain point if you cant pay it should you just ignore it?

Go to a bank , ask for a line of credit to consolidate all of your cc debt.

Now your debt is in one place, at at least half of the interest rate.

This should be your first step.

10k of debt is hardly large, this is an easy hurdle to overcome with a few simple changes!

No, probably not.

Your best bet is probably to try to get a loan with a relatively low interest rate and use it to pay off all your credit card debt. That'll make your payments more manageable.

Though if your debt problems have already damaged your credit enough, you may need someone to cosign for it.
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I did get a personal loan offer in the mail for about 20000 that I could have used to consolidate but I don't want to take any more lines of credit because I know I won't be able to pay it off. Consolidating the debt is just delaying the inevitable for me, until I get a real job in my field.

Idk its just to scary for me to take out even more debt.

Tony_Biggie_Pun posted...

I did get a personal line offer in the mail for about 20000 but I don't want to take any more lines of credit because I know I won't be able to pay it off. Consolidating the debt is just delaying the inevitable for me, until I get a real job in my field.

Consolidating debt makes the debt easier to see, more manageable, and easier to pay off with a lower interest rate.

You should absolutely consolidate to a lower interest rate. If you don't do this you are outwardly admitting you want to fail.

Esrac posted...

Though if your debt problems have already damaged your credit enough, you may need someone to cosign for it.

Yeah my credit score is about 499-509 right now. Last year it was about 670. Two years ago it was like 750

t_paynes_ghost posted...

Tony_Biggie_Pun posted...

I did get a personal line offer in the mail for about 20000 but I don't want to take any more lines of credit because I know I won't be able to pay it off. Consolidating the debt is just delaying the inevitable for me, until I get a real job in my field.

Consolidating debt makes the debt easier to see, more manageable, and easier to pay off with a lower interest rate.

You should absolutely consolidate to a lower interest rate. If you don't do this you are outwardly admitting you want to fail.

I've heard that after 7 years if you don't pay a debt it gets wiped from your history. I was thinking about going that route with the higher cards. Because from what I see if I keep trying to pay those cards now with my current income, it'll take maybe more than 7 years to pay it off

Why ask for help if you've already decided you want to lose? Were you just looking to feel better about accepting your loss?

No I'm just just weighing my options. Its something I'm considering, but other people may have advice or warnings on why I shouldn't do it so thats why I made the topic

Tony_Biggie_Pun posted...

I've heard that after 7 years if you don't pay a debt it gets wiped from your history.

This sounds like some stupid bullshit someone made up.

Do what the other posters have said so you're interest rate is lower.
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Declare bankruptcy so you can't make any more stupid decisions with credit ever again
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t_paynes_ghost posted...

Why ask for help if you've already decided you want to lose? Were you just looking to feel better about accepting your loss?

Yeah, this was a weird topic. Debt chunking is very effective if TC wants to even try at all. If he thinks he can put 75% of his paycheck into savings, then he easily could be paying off his debts.
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Tony_Biggie_Pun posted...

No I'm just just weighing my options. Its something I'm considering, but other people may have advice or warnings on why I shouldn't do it so thats why I made the topic

Okay fair enough.

You don't want to default on small CC loans. Collections will just take your parents possessions, and you don't want to go through the emotional pain that comes with that, nor would you want to put your parents through that. And above all, you want to feel the sweet victory of conquering this challenge. There is no feeling greater than knowing you don't owe anyone anything.

What's your budget look like? What's your income? What are your monthly bills? What frivilous entertainments do you currently spend money on? Got a spreadsheet you can link? Maybe I can help recommend some lifestyle downsizing for you. I just went through a 6 month exercise of lifestyle shrink with my wife so we could afford a kid with her being a stay at home mom, so I think I've gotten pretty good at finding the open cash.

I only make about 8000 per year though. It'd be one thing if I made even had a minimum wage full time job

Tony_Biggie_Pun posted...

I only make about 8000 per year though. It'd be one thing if I made even had a minimum wage full time job

Are you a teenager or something? Just get a full time job
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Tony_Biggie_Pun posted...

I only make about 8000 per year though. It'd be one thing if I made even had a minimum wage full time job

I can't help you if you don't want to answer my questions. Making excuses for you to fail will only lead for you to fail.

You have to make a choice.
1) Resign you don't want to put in the effort to fixing this.
or
2) Accept that changes will have to happen in your life (easy changes) and work towards conquering this challenge.

So far all you've done in this thread is number 1. I can help you, but you gotta play ball.

t_paynes_ghost posted...

Okay fair enough.

You don't want to default on small CC loans. Collections will just take your parents possessions, and you don't want to go through the emotional pain that comes with that, nor would you want to put your parents through that. And above all, you want to feel the sweet victory of conquering this challenge. There is no feeling greater than knowing you don't owe anyone anything.

Wow I didn't know they can do that is that really true? The only possession we really have is our apartment

t_paynes_ghost posted...

What's your budget look like? What's your income? What are your monthly bills? What frivilous entertainments do you currently spend money on? Got a spreadsheet you can link? Maybe I can help recommend some lifestyle downsizing for you. I just went through a 6 month exercise of lifestyle shrink with my wife so we could afford a kid with her being a stay at home mom, so I think I've gotten pretty good at finding the open cash.

My budget is very low, I'm cut spending spending so much, I have to pay transportation to get to work though. I'll say I spend about 20 a week of my own money on personal things. I try to stay at home to avoid spending money. Income wise I have a few part time jobs. Nothing tangible my income is about 8000 ish per year.

But you said you can put 75% of your pay towards savings, which means you can put 75% towards debts. If you're not going to consolidate debts, then just focus on paying off the cards with the lowest balances first, one at a time, while covering the minimum payments on the other cards.

Once you clear a card, move on to the next lowest one. This is called debt chunking, its one of the most popular methods for repaying large debts (far larger than yours) with minimal income.
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Tony_Biggie_Pun posted...

t_paynes_ghost posted...

Okay fair enough.

You don't want to default on small CC loans. Collections will just take your parents possessions, and you don't want to go through the emotional pain that comes with that, nor would you want to put your parents through that. And above all, you want to feel the sweet victory of conquering this challenge. There is no feeling greater than knowing you don't owe anyone anything.

Wow I didn't know they can do that is that really true? The only possession we really have is our apartment

t_paynes_ghost posted...

What's your budget look like? What's your income? What are your monthly bills? What frivilous entertainments do you currently spend money on? Got a spreadsheet you can link? Maybe I can help recommend some lifestyle downsizing for you. I just went through a 6 month exercise of lifestyle shrink with my wife so we could afford a kid with her being a stay at home mom, so I think I've gotten pretty good at finding the open cash.

My budget is very low, I'm cut spending spending so much, I have to pay transportation to get to work though. I'll say I spend about 20 a week of my own money on personal things. I try to stay at home to avoid spending money. Income wise I have a few part time jobs. Nothing tangible my incoem is about 8000 ish per year.

Okay first thing to do.

https://docs.google.com/spreadsheets/u/0/d/1szEVGLcl5QmFDEZPYBuckk0gJ_rtGAtoWQYjk9q0jrQ/edit?ntd=1&usp=sheets_home&ths=true

This google sheet template is everything you need for a basic budgeting. Clone this to your own google account and use it!

What you need to do, is starting October 1st. Write down every single thing that earns you money, and every single thing you spend on money. Customize the various expense subjects to your liking. After a couple weeks you may be surprised about how you spend your money, and after a month you will have a pretty decent view of your current financial status.

Your losses by accumulating fees and interest are far greater than the gains you get from putting money into savings.

Ignore savings. Blitz the debt.
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BlazinBlue88 posted...

Tony_Biggie_Pun posted...

I've heard that after 7 years if you don't pay a debt it gets wiped from your history.

This sounds like some stupid bullshit someone made up.

Do what the other posters have said so you're interest rate is lower.

Actually it is true. It just has to be a small amount to do it. I never paid off a credit card that had a $500 limit from like 12 years ago and they wrote it off.
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jcmason posted...

But you said you can put 75% of your pay towards savings, which means you can put 75% towards debts.

Yeah I was doing that and making no progress. It feels so horrible slaving away at work, using all of my money to travel to work, or pay debts. And having to rely on my mother to give me personal money.

jcmason posted...

Once you clear a card, move on to the next lowest one. This is called debt chunking, its one of the most popular methods for repaying large debts (far larger than yours) with minimal income.

Thats true. I can do that with my smaller cards. I'm thinking once I get my next check, I may pay off the $450 credit card in total. Those 2300, and 5000 ones are like a monkey on my back though.

TheBiggerWiggle posted...

Your losses by accumulating fees and interest are far greater than the gains you get from putting money into savings.

Ignore savings. Blitz the debt.

Woah I missed this detail in the OP.

Absolutely stop dumping into savings, put that all into CC debt. Your CC debt is accumulating far more interest than your savings, so by pumping savings, your actually losing money in the interest race.

If you consolidate you don't gain any extra debt you just trade high interest rate debt for lower interest rate debt.
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They just feel like they are too big, but if you're clearing off 450 per check, you can probably work through most of this debt within two years.
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I cant pay 450 per check though. My average check is between 100-200 dollars. Thats the whole check. Even if I pay my whole check towards debts, the fees from all the cards basically wipe it out. And then I basically just worked for nothing. Plus I need money to eat and travel at least

Tony_Biggie_Pun posted...

jcmason posted...

But you said you can put 75% of your pay towards savings, which means you can put 75% towards debts.

Yeah I was doing that and making no progress. It feels so horrible slaving away at work, using all of my money to travel to work, or pay debts. And having to rely on my mother to give me personal money.

You make 8k/yr. You're not slaving away at anything
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Dat_Cracka_Jax posted...

Tony_Biggie_Pun posted...

jcmason posted...

But you said you can put 75% of your pay towards savings, which means you can put 75% towards debts.

Yeah I was doing that and making no progress. It feels so horrible slaving away at work, using all of my money to travel to work, or pay debts. And having to rely on my mother to give me personal money.

You make 8k/yr. You're not slaving away at anything

Yes I am, I when I have to travel all the way to Jersey from NY to work(I work at Metlife Stadium so work days are dependent on events) then we get off at like 12 at night and then its 2 hours+ of travel back home and I get home at 3, completely exausted.

My main issues are travel and late hours. Leaves me exhausted. Thinking about having to give my whole check to someone after all of that, its like I might as well just stay home.

Tony_Biggie_Pun posted...

Dat_Cracka_Jax posted...

Tony_Biggie_Pun posted...

jcmason posted...

But you said you can put 75% of your pay towards savings, which means you can put 75% towards debts.

Yeah I was doing that and making no progress. It feels so horrible slaving away at work, using all of my money to travel to work, or pay debts. And having to rely on my mother to give me personal money.

You make 8k/yr. You're not slaving away at anything

Yes I am, I when I have to travel all the way to Jersey from NY to work(I work at Metlife Stadium so work days are dependent on events) then we get off at like 12 at night and then its 2 hours+ of travel back home and I get home at 3, completely exausted.

My main issues are travel and late hours. Leaves me exhausted. Thinking about having to give my whole check to someone after all of that, its like I might as well just stay home.

Think about it this way. That money you owe, you already spent it. All you're doing is paying back money you lent from someone else. That whole check is going to yourself, you just already spent it.

Look for a better job. Not being a dick but 8k is nothing a year. Get an entry level office job paying at least 25k a year. Should be easy to find and easy to get into. If you're in high school its understandable but if you're over 18 theres no reason to not look for a better job.
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You're pretty fucking dumb for working that job anyway, no matter WHAT. Bag fucking groceries for tips in any little fruit market within 10 miles of your house.

And how the fuck do you make 8K from an on the books job?
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t_paynes_ghost posted...

Okay first thing to do.

https://docs.google.com/spreadsheets/u/0/d/1szEVGLcl5QmFDEZPYBuckk0gJ_rtGAtoWQYjk9q0jrQ/edit?ntd=1&usp=sheets_home&ths=true

This google sheet template is everything you need for a basic budgeting. Clone this to your own google account and use it!

What you need to do, is starting October 1st. Write down every single thing that earns you money, and every single thing you spend on money. Customize the various expense subjects to your liking. After a couple weeks you may be surprised about how you spend your money, and after a month you will have a pretty decent view of your current financial status.

Yeah I'd love an entry level office job for that much. Would be super easy, its been hard for me thouygh. I recently did just get hired by the Barclays Center to do concessions and thats a basketball stadium so way more events than just Sunday. I start next week

Fony posted...

You're pretty fucking dumb for working that job anyway, no matter WHAT. Bag fucking groceries for tips in any little fruit market within 10 miles of your house.

I've had it since Highschool. At the very least its been reliable. Also its part time so I can do that and have other jobs as well so thats why I keep it.

t_paynes_ghost posted...

t_paynes_ghost posted...

Okay first thing to do.

https://docs.google.com/spreadsheets/u/0/d/1szEVGLcl5QmFDEZPYBuckk0gJ_rtGAtoWQYjk9q0jrQ/edit?ntd=1&usp=sheets_home&ths=true

This google sheet template is everything you need for a basic budgeting. Clone this to your own google account and use it!

What you need to do, is starting October 1st. Write down every single thing that earns you money, and every single thing you spend on money. Customize the various expense subjects to your liking. After a couple weeks you may be surprised about how you spend your money, and after a month you will have a pretty decent view of your current financial status.

Thanks just requested access

TC doesn't want to pay his debts at all, that's why he's not responding to advice. He just wants a way out

Maybe you shouldn't have bought all that stuff you couldn't afford, TC
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Tony_Biggie_Pun posted...

Fony posted...

You're pretty fucking dumb for working that job anyway, no matter WHAT. Bag fucking groceries for tips in any little fruit market within 10 miles of your house.

I've had it since Highschool. At the very least its been reliable. Also its part time so I can do that and have other jobs as well so thats why I keep it.

I made more money working summers at Jones Beach in high school Jesus.
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Lol I stopped paying all 7 of my credit cards two years ago. Haven't had to pay anything since. My credit also only took a 200 point loss and has since recovered 100 of that due to my car being nearly paid off and my cell phone and shit
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I don't understand how you're making so little since you said you have a few jobs.

I had one side job a couple years back at Staples that gave me ~25 hours a week and my check each week after taxes was $150. Just that one job gave me $600 a month to put into my bank account. Now imagine if you had two jobs like that...$1,200 a month to pay off your credit cards.
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I dont want to be a dick but I dont understand whats going on here. You live in New York, but drive two hours to another state for 8K a year? Why do you do this? There should be plenty of work near you. Work you get paid more for.

Like you could probably make more money driving for Uber. You can probably find a data entry job that pays at least ten an hour. Hell even McDonalds would be a better option.
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Tony_Biggie_Pun posted...

Yeah I'd love an entry level office job for that much. Would be super easy, its been hard for me thouygh. I recently did just get hired by the Barclays Center to do concessions and thats a basketball stadium so way more events than just Sunday. I start next week

Look for a time share company that you can get a data entry job for. Not joking. Time shares are bullshit but you won't be selling them and the companies pay great money, and dont usually run a credit check for employees. I'd say get a bank job but I'm not sure how they'll view your debt even though it's not very large in the grand scheme of things.
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pres_madagascar posted...

Lol I stopped paying all 7 of my credit cards two years ago. Haven't had to pay anything since. My credit also only took a 200 point loss and has since recovered 100 of that due to my car being nearly paid off and my cell phone and shit

Yeahh I was thinking of something like this lol. They dinged me 250 on my score and I've been actually trying for the last two years. Makes me feel like I might as well bottom out and start up from scratch. My score is going to be shit regardless :/

Smashingpmkns posted...

Tony_Biggie_Pun posted...

Yeah I'd love an entry level office job for that much. Would be super easy, its been hard for me thouygh. I recently did just get hired by the Barclays Center to do concessions and thats a basketball stadium so way more events than just Sunday. I start next week

Look for a time share company that you can get a data entry job for. Not joking. Time shares are bullshit but you won't be selling them and the companies pay great money, and dont usually run a credit check for employees. I'd say get a bank job but I'm not sure how they'll view your debt even though it's not very large in the grand scheme of things.

Im in NY so I'm lucky in that legally you cant check for credit as a basis for hiring someone.

I actually have a degree in Bachelors degree in CS. So I've been focused on finding programming jobs or jobs related to computers in my field but have had no dice within the last two years except for one opportunity that would have required me to relocate.

I've also worked part time at Best Buy with the Geek Squad but that was seasonal and they didn't bring me back last season and also when I did work they'd barely give me hours anyway. I'm thinking maybe I'm looking in the wrong places for jobs.

If I could find a place where I can get an office job that would be splendid. Office work is so easy its ridiculous and I don't mind wearing suits to work. Even just a $30,000 a year job could be life changing somewhat

Tony_Biggie_Pun posted...

pres_madagascar posted...

Lol I stopped paying all 7 of my credit cards two years ago. Haven't had to pay anything since. My credit also only took a 200 point loss and has since recovered 100 of that due to my car being nearly paid off and my cell phone and shit

Yeahh I was thinking of something like this lol. They dinged me 250 on my score and I've been actually trying for the last two years. Makes me feel like I might as well bottom out and start up from scratch. My score is going to be shit regardless :/

Still better than if you'd declare bankruptcy. Still better than letting thousands in interest continue to build as you pay them.

I literally tried everything to get a loan to consolidate. Nope. Eventually just said fuck it. It's been a tremendous load of stress off my mind.

What's handy too, is if you do intend to pay, and not wait the 7 years shit, you can take them on one by one, or wait till third party collection companies buy the debt and pay it off at a fraction of the original number using one of their settlement offers.
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Tony_Biggie_Pun posted...

t_paynes_ghost posted...

t_paynes_ghost posted...

Okay first thing to do.

https://docs.google.com/spreadsheets/u/0/d/1szEVGLcl5QmFDEZPYBuckk0gJ_rtGAtoWQYjk9q0jrQ/edit?ntd=1&usp=sheets_home&ths=true

This google sheet template is everything you need for a basic budgeting. Clone this to your own google account and use it!

What you need to do, is starting October 1st. Write down every single thing that earns you money, and every single thing you spend on money. Customize the various expense subjects to your liking. After a couple weeks you may be surprised about how you spend your money, and after a month you will have a pretty decent view of your current financial status.

Thanks just requested access

Don't request access, clone these sheets.

Before I got my first IT job I was working anywhere. Worked for UPS as a driver helper. Applied for helper coordinator(basically my own boss) and got it due to computer skills(basic lame data entry). Went from part time minimum wage to $28 an hour. It was a management position with no real qualifications to speak of. Took three minutes(not exaggerating) to learn the job duties which consisted of calling helpers to check availability, handing out paychecks and entering in data on fucked up deliveries at the end of the day.

UPS even hires violent felons, no excuse to cross state lines for slave wages.
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Here's some fun perspective: $8000/365 = $22
You could panhandle every day until you make $23 and make more than you do at that job.
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$22k more than what you make already would definitely be life changing. You're not doing yourself any favors hoping a programming job will fall in your lap though. Make steps to bettering your situation while still looking for a programming job. Get a desk job doing menial shit for the mean time. It's totally possible and theres no reason as to why you cant get one. And it'll look better on a resume for a programming job than serving hot dogs to drunks.
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TheBiggerWiggle posted...

I dont want to be a dick but I dont understand whats going on here. You live in New York, but drive two hours to another state for 8K a year? Why do you do this? There should be plenty of work near you. Work you get paid more for.

Like you could probably make more money driving for Uber. You can probably find a data entry job that pays at least ten an hour. Hell even McDonalds would be a better option.

I don't drive I take public transportation. Subway to port authority then take NJ transit to Metlife Stadium.

I'm not working at McDonalds. I rather be broke than miserable. Especially with how NY customers talk to people. I did work at Best Buy but the issue with chain and retail jobs like this is that they never give you consistent hours. You might work just 1 or 2 times in a week. Maybe because in NY there so many people they can be choosy with who they hire or give hours

t_paynes_ghost posted...

Tony_Biggie_Pun posted...

t_paynes_ghost posted...

t_paynes_ghost posted...

Okay first thing to do.

https://docs.google.com/spreadsheets/u/0/d/1szEVGLcl5QmFDEZPYBuckk0gJ_rtGAtoWQYjk9q0jrQ/edit?ntd=1&usp=sheets_home&ths=true

This google sheet template is everything you need for a basic budgeting. Clone this to your own google account and use it!

What you need to do, is starting October 1st. Write down every single thing that earns you money, and every single thing you spend on money. Customize the various expense subjects to your liking. After a couple weeks you may be surprised about how you spend your money, and after a month you will have a pretty decent view of your current financial status.

Thanks just requested access

Don't request access, clone these sheets.

I cant see the sheets they have restricted access.