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[quote=Anonymous][quote=Anonymous]
Before advising OP to file for bankruptcy look at the numbers.  All she needs is to work with a debt management non profit to negotiate a 10% interest rate on her credit cards. If she does that she can pay off her debt in 2-3 years while keeping her apartment and car instead of renting a room from a stranger and driving a beater per your scenario [/quote]

Maybe... don't you think 2-3 years is pretty unrealistic?

$55000 in debt. at 10% interest, I'm seeing she'd have to pay $1774/month for three years to pay it off.

Pluse her $700 car loan?  OK, maybe she refinances that to 7 years to be what, $500?

That's still $2200 a MONTH for three years.  Yeah, better than $2700 that she's paying now, but still really tight on her take-home, and it doesn't leave much at all for saving for emergencies.

I have a HHI of $150,000 and I'd have a hard time paying $2200 a month in debt.

Do you work for the credit card companies or something? You seem to be trying to convince people that they should stay in debt, because they need to keep their nice car and oh, no, they might not be able to rent an apartment or something for EVER!

But I don't think bankruptcy ruins your life as much as you are scaring people into believing it will.

First off, she's renting an apartment, and paying the rent, right?  As long as she keeps paying the rent on time (MORE LIKELY if she gets rid of her debt) she's probably going to be able to stay there. Landlords don't kick you out if you are a good tenant and pay on time.

I just was thinking of the worst case scenario, that if she lost your apartment for some reason and had to move, and had a low credit score, it's be harder to find a place to rent, sure, for a year or two. But there are always ways, and she's a single woman - pretty easy to suck it up for a year if you need to.

(And easier than keeping on paying $2200 every MONTH towards this debt for THREE YEARS.)

And then you are saying yeah, just keep paying the debt, so at least you don't have to sell the car and drive a ... shudder.. beater.   LOL.  Full disclosure, I drive a beater. It works fine. I can afford the insurance and the repairs. It doesn't look great, but it gets me to work and it gets me back home. People who are in overwhelming debt should NOT Be driving 2 year old cars.  It's not the end of the world to drive a beater and it is MUCH better to be doing that, than to put your education on hold, and your financial security, to pay off this very high debt.

Here's the thing she really *should* be worried about - a period of disability where she is unable to work her physically demanding job. This sadly happens, and happens more often to women, esp over 40, especially those who are not in good health. It's why it can be hard to buy disability insurance if you have diabetes or any other health concern, such as high blood pressure or being overweight, sadly.

Look at her finances. ONE missed paycheck and she's going to have trouble just paying the rent. That's the thing that should be keeping herup at night, not a concern about having to drive a beater car or worry that maybe possibly, she might have trouble renting.

What good does it do to keep your credit score in the 600s but then lose your apartment because you became ill or disabled for three months and you were evicted from your apartment?[/quote]

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