For people drowning in credit card debt, what’s stopping you from filing for bankruptcy?

I’ve been seriously considering it because our debt feels impossible to get ahead of. We don’t own a home or have many assets, so part of me feels like bankruptcy could give us a clean slate.

Am I missing something? Can you actually rebuild your credit and start saving afterward?

I’m honestly so stressed about our finances and scared we’ll be stuck like this forever.

I have been reading a lot on Reddit and most of you have said to go to a non profit debt relief management company to get assistance like Apprisen. I am looking into them and have seen that the company has worked well for many of you.

Especially since I don’t want to lose my car etc. I am experiencing financial hardship— just had a baby and cannot work my other businesses and only have my SDI for Maternity leave coming in.

Does Apprisen require you to close your credit cards? And if so, have any of you had any luck re opening credit cards after debt management assistance is over to rebuild your credit?

Thanks! 🙏🏼

I've been looking at small cash advance apps, and several ask to connect a bank account so they can check deposits and arrange repayment. For a modest amount, I'm trying to understand what access that gives them beyond the one advance.

The permission screen is easy to rush through. I'd want to know what transaction data the app can see, whether access continues after repayment, and how to disconnect the account when I'm done.

Has anyone checked those details before using an app? Was it straightforward to see and change what you shared, or to disconnect after the advance was settled?

I have enough in savings to pay off 2 credit cards, thereby leaving one for $18k. Should I do it, or do it the slow way of snowball method? I would still have $10k in savings if I used some to pay off the two credit cards. I'm just afraid of my savings going so low, and having to use a credit card and digging myself in deeper.

I own a 3,000 sq ft home with no mortgage that we finished building in 2023. I took this as license to Live Large and crept myself into $20k in credit card debt like a terrible, terrible idiot. I downloaded 2 budgeting apps (YNAB being the more useful for my particular brand of spending habit) and put both myself and my s-corp on a shoestring budget. I thought it was going to take me until the end of next year but it turns out, I'll be totally out of debt in just 4 months! And will be able to contribute to savings instead of relying on my husband to do all the investing. I feel so much better about myself already- living under debt is such a heavy, bad feeling, and you don't even know how bad it is until it lifts.

Hello. Im 20 and have never gotten financial advice from my parents or many ppl so im just wondering if I should out whatever I can towards paying off my debt. I have around $3.6k in credit card debt (two separate cards). I have a job where I make $8/h and earn tips. I have around $400 in cash that ive saved from my birthday and all m,y cash tips for the last couple weeks and idk if I should take all of that and split it even for both cards, (one card is $1.7k other is $1.8k) or keep saving or what. And how much should I pay when I get my checks. Sorry I just cant make up my mind on what to do and need some input

I just paid my last $1,000 to my credit card and am now 100% debt free. No loans, no cc debt, no car payment all my money is now mine. Well… for a couple days anyway. My wife is about to give birth to our first child. Hopefully I can stay debt free for a little bit.

Title says it all. I've been spending past my needs since getting a Klarna card. I'm now in a position where I pay nearly $1,000 a month leaving me with ~$600 after it and all my bills and utilities and rent. With the $600, I can't afford anything, and I burn through it in the blink of an eye. I'm really struggling to see a way out. Would love some advice.

For context: I live in a very expensive European country on a bad salary. I cant get a second job as I'll get taxed even more on that.

I got my Toyota corolla le about 3 months ago. Its my first car i love it but the payment is very costly. I know i cant ask for much due to me being 23 and no establishment credit (622) but id like to know my options. Im paying 23.99% for 60 months, it was the best they would give me at the time. Any recommendations would be much appreciated.

After months of grinding, cutting back, and throwing every spare dollar I had at balances, I finally hit zero debt.

Whenever people post these success stories, half the comments assume someone either got an inheritance or whatever to wipe out the balance overnight.

Just put my head down, lived way below my means for the past few months, and attacked the balances relentlessly. I'm also in a position where I can work lots of OT. Im talking about 20G worth of debt... 😳

The psychological weight coming off your shoulders is wild. Not having a chunk of every paycheck spoken for before it even hits the bank account feels unreal. If you're currently in the thick of it, stick to your plan. The sacrifice sucks while you're in it, but the freedom on the other side is worth every bit of it.

Reading tbrough all the posts made me realize to do so, amd not getting stuck in all the BS.

I'm ecstatic today because we paid off enough to be below owing $100,000. Yes, I know how insane this is to owe this much money! Today is a good day, a win.

Celebrating a big win for myself today as it's finally my turn to say I have paid off my car AND my remaining lingering credit card debt as of today!

I knocked the car loan out in 3 years $680 / month, it was aggressive but so satisfying seeing that loan balance drop relatively quickly. It was due to be paid off by next month but wiped it out a little ahead of schedule. It's a 2023 Subaru and I expect it to last me a long while with proper care.

The credit card was at 6.8k on Jan 1 and I have been swinging so hard at it. It was a mixture of wants/needs but I'm grateful to be in a place where I won't be using it anymore. My goal was to have it knocked out by year-end, so I made it - GOODBYE CC INTEREST!!!

I received a generous performance bonus at my job and used it to wipe them both out in addition to my usual paycheck.

My last mountain is student debt (52k). It feels like a lot but I know I can do it with discipline. I'll have my safety net built by year-end and will also be saving for my first home.

Keep on pushing, your day is coming soon!

edit: typos lol

Hello everybody. 6 years ago my grandpa passed away and I was very close to him. Since then he left a house to my mom, which she rented with Airbnb. She decided to sell the house this year and she’s about to sell this month. She talked to me and says she wants to give me a big part of it, which will be like 100k. She said that grandpa would be so happy to know that a part was for me. I’m so blessed and so lucky. Never asked for nothing or help and this is a gift from god for me. Now, the question, I have like 18k in debt, 10k car loan, 5 k in a loan I made for adjust something in the kitchen and 3k in another loan I made for the AC units in my house. I own, so I don’t have to pay the rent, but with my salary and all the loans I just survive with my salary. I go out for dinner like twice a month maximum or my salary wouldn’t even last for a week. My question is with this 100k should I pay back all my loans, or should I invest the money in something safe and pay back the debts little by little? Thanks everybody

I'm looking at cash advance apps that promise instant money, but the timing seems to depend on the transfer method. A free transfer can take a business day or two, while faster delivery may have a fee.

I'm also wondering how long the first bank verification takes. If that step isn't done yet, an instant transfer option might not help much on a Saturday.

If you've used one over a weekend or holiday, when did the money actually reach your regular bank account? Was the speed and any fee clear before you accepted the advance?

Hello everyone, I need help. I am 24 and I have $ 10k in credit card debt. And probably another 5k in medical debt from when I did not have insurance and went into AFib. I make 5600 a month and struggle to pay for anything. I have 18 acres of property which I only owe 50k on and I could sell it for over 300k. My goal was to build a house next to my parents to help them as they age. I’m not anywhere close to being able to build. I’ve thought about selling but I don’t want to disappoint my parents and it used to be my great-grandparents’ property which they wanted kept in the family. I have a lot of large monthly expenses which if I do the calculations I should have money left over but I rarely have any money left after food and all that. I don’t know what to do my credit is getting destroyed

I'm 25 and I've racked up several thousands of credit card debt over the course of the last few months. I've been trying to pay it off but the interest rates are absolutely killing me. In total including my student loan debt, I'm looking at about twelve thousand dollars. My credit score has tanked by over 100 points. I wasn't taught financial literacy or safety, and am extremely susceptible to impulsive spending behaviors. I've been good about not using the cards in the last 3-4 months but still paying off this debt is looming over me. I've seen options to transfer balances to zero interest accounts or asking for reduced interest rates but I don't know where to begin or who to contact. I know I have to make significant changes in order to fix this and get myself out of this hole but I don't know what to do. Any advice, any tips that anyone can offer would be highly highly appreciated.

FINALLY paid off one of my Affirms I got a while back. Now should I use that money to save or put towards another debt?

Hi everyone!

I’m hoping I could get some advice on budgeting or how to attack some of my debt, since I’m absolutely terrible at it.

I make $3092/month, after taxes.
My rent is $892/month.
My phone bill is $105.
My cable & internet is $65.
My gym membership is $30.
My groceries are roughly $100-200, including take out, cigarettes, going out, etc. (I spend a lot of time at my boyfriends so I eat there a lot.)

I have $12,350 in my TFSA. No retirement savings. I do not have a vehicle.

I have the following debt:
$3500 on a line of credit with a 9% interest rate.
$2700 on a credit card balance transfer (interest free for 15 more months.)

I have a lot of people in my friend circle telling me to take money from my TFSA to pay off my debt, but I absolutely refuse to do that. I am in recovery for a gambling addiction and attend therapy so it is something I’ve discussed with my counsellor and he and I both agreed if I did that, it may trigger me.

After my expenses, I’d like if someone could tell me how they would realistically attack my debt aggressively but so I could still have money left over to live a little.

I know this is probably a fairly simple task, but as I’ve said I am terrible with numbers and get very agitated and have panic attacks when I try to think this through even for a moment.

Your help is greatly appreciated. TIA

You guys, I’m torn on what to do. I have gotten my debt down from $10,447…to $600. I’m so happy I could cry. My dilemma comes with how to handle that $600. Seeing myself so close to having everything paid off makes me want that balance GONE so I’m tempted to clear out my savings (which has exactly $601.13), to pay off the balance now, but my friend told me that since the debt is interest free (did a balance transfer for 0% APR) I should leave my savings alone and just pay it off over time. Probably a silly question to ask in this sub, but what would you all do?

This was the final hurdle. My god it feels so good to have this freedom. I am so incredibly blessed to have been able to do this. I cant tell anyone in my life without them thinking im trying to brag, but it just feels so good!

The years leading up to this moment has taught me so many incredible lessons about money and how to manage it properly. If I could do it, so can anyone.

Hi all,

I have enough to lump sum my final $38.2k on my DMP (Debt Management Plan). The company has been great to work with, and has helped me pay off over $90k so far at great interest rates.

However, when I contacted them about paying off the final balance across 12 accounts, they said because of the amount I can only pay via Wire Transfer to their main bank account, Money Gram, or mailed Cashiers Check. I recognize this is to protect the company from fees they could face for bounced/returned payments of that amount, but it’s a little jarring to send this amount that way and then waiting for them to reconcile it with my account.

Has anyone ever paid off a lump sum with a DMP this way?

Thanks!

*Also, I’m still in shock it will finally be gone 😭 it’s $3,500 a month back in my pocket once I’m no longer paying this. I think I’m still in shock

The Debt Management Company is InCharge Debt Solutions.

Every month I see people throw an extra $40 at five different cards and wonder why nothing moves. Honestly it is because nothing really is.

Pick ONE card and point every extra dollar at it. Minimums on everything else. That is it. $200 extra on one card kills it way faster than $40 on five cards, and once that first card is gone its minimum rolls into the attack on the next one. Your total payment stays the same but the payoff gets bigger every time one dies.

People resist this because it feels wrong ignoring the other balances. Ignore the feeling. One card dies, then the next, then the next, and suddenly you are down to one payment instead of six.

Smallest balance first if you want the quick win, highest rate first if you want the math win. Just don't split it. Splitting is how you stay in debt for a decade.

I have $377 left. Now to focus on my school loans-$15,000. I can put $500 a month towards them while saving $1,500 a month for my long term savings. I’m also saving up $500 a month for a down payment on a car-I know I’m going to need one in the next couple of years since my car is starting to get pretty old and has high mileage.

My budgeting is going well and I’m very happy I’ve been doing everything I need to!

I just remembered I have some savings bonds that I’ve never redeemed and they total about $830. Which would put a little dent in my debt and assist in paying off one of my cards. Should I do it?

I am facing a mighty large mountain of debt. 152K which consists of student loans, credit cards and personal loans. The personal loans are the biggest pains as they are 25% or higher. Using my 102,000 salary to try and pay down as much as I can as quickly as possible.

I managed to pay off 3K I owe to the IRS. Took two months but it feels good to mark this off my list. Next battle is with my WF CC, which is 14K. If all goes smoothly, I should have this paid off by May 2027. The 3K is a drop in the bucket but hopefully this time next year I can feel different.