I’m currently facing around $118k in debt, mainly from poor spending habits, gambling, and taking out high-interest loans. I’m enrolled in a debt management program with New Start Capital, paying $1,120 per month. However, this doesn’t cover all my debt—I kept some low-limit cards for emergencies. My income has decreased recently, and this payment takes up almost an entire paycheck, leaving me struggling with daily living expenses and my car payment.
I’ve been thinking about filing for bankruptcy to get a fresh start. I know it will have a significant impact on my credit, but at 27, would it be such a bad decision? I’ve read that although the impact is negative, it might be possible to rebuild my credit relatively quickly. I’m currently working two jobs to make ends meet, but my income has dropped from $80k last year due to switching to another dealer. I’m also waiting to hear back on a higher-paying job application.
Here’s a breakdown of my debt:
- Chase Sapphire: $15,000 (min $705, 25.24% APR)
- Aviator Advantage: $15,165 (min $193, 22% APR)
- Citi Black Diamond: $3,100 (min $41, 0% APR until Nov 2025)
- Citi Double Cash: $1,900 (min $90, 29.24% APR)
- Members 1ST FCU Credit Card: $5,000 (min $102, 18% APR)
- Line of Credit: $4,500 (min $100, 18% APR)
- Capital One: $850 (min $45, 30.24% APR)
- Credit One: $500 (min $40, 29% APR)
- Sofi Loan: $30,000 (min $746, 16.79% APR)
- UpStart Loan: $38,000 (min $1,200, 32% APR)
- Opp Loans: $3,200 (min $241 bi-weekly, 110% APR)
Total Debt: $108,450
Plus, I have a monthly car payment of $590 and other bills totaling roughly $750. I also have $193 in student loans.
Is filing for bankruptcy at this point a wise choice? I’m torn between sticking with the debt management program or opting for bankruptcy to get a clean slate. Any advice would be greatly appreciated.
