I’m stuck with over $30K on a credit card that my husband and I shared. He ran it up while his business was failing, and I’ve been a stay-at-home mom with no income. I’ve been selling things to make ends meet, but I can’t even keep up with the minimum payments anymore. The card is still open, but I’m two months behind, and my credit is already damaged from another card he maxed out that got closed under my name.
I’m trying to avoid bankruptcy, but I’m wondering if settling the card is my best option? I know it’ll hurt my credit score, but at this point, it’s already bad. Should I try to negotiate with the credit card company? I don’t need to save this card. I’m also divorcing my husband, so that’s already in progress if anyone’s going to suggest it. Any advice would be appreciated. TYIA!
If your credit is already bad, settlement might be a good option. Don’t take the first offer, though. They usually start high. I settled an $18K balance for $6.5K after they initially asked for $15K.
Tobin said:
If your credit is already bad, settlement might be a good option. Don’t take the first offer, though. They usually start high. I settled an $18K balance for $6.5K after they initially asked for $15K.
Thanks for the advice. If I go the settlement route, I’ll definitely try to negotiate.
It’s hard to give advice without more details. How much total debt are you dealing with? Do you have any assets? What has your divorce lawyer said about this card? If your husband opened cards without your knowledge, ask your lawyer if you can file a police report to get those debts off your name.
Don’t throw all your money at this card if you don’t have a clear plan for the rest of your debts and your future. Best of luck!
@Noor
I’m in Texas, and my husband has around $200K in debt, but I have about $50K of my own. My biggest debt is the $31K on this Chase card, which I haven’t paid for two months. I also have an $8K card I’m trying to pay off since it’s my longest credit line. Our only asset is the house. My lawyer suggested selling the house and using the money to pay off my debts, but I’m trying to avoid spending all the proceeds on this.
@Spencer
If your husband has $200K in debt, will any of it fall on you after the divorce? I’d follow your lawyer’s advice and hold off on settling anything until you know where everything stands. But don’t ignore the creditors—let them know what’s going on unless your lawyer advises against it. Try to get as much of the debt assigned to him in the divorce, even if it doesn’t help your credit.
@Noor
His debt is all under his name, so it’s not my responsibility. We’re doing an uncontested divorce, and I’ve already checked my credit report to confirm what debts are mine.
@Spencer
In Texas, there’s something called a homestead exemption that might protect your house from creditors. If you don’t have other major assets, it could help.
Bayley said: @Spencer
In Texas, there’s something called a homestead exemption that might protect your house from creditors. If you don’t have other major assets, it could help.
We’re currently under the homestead exemption, but the mortgage hasn’t been paid since June because my husband didn’t tell me. If he files for bankruptcy, the mortgage company could ask to lift the exemption, so I’ve been advised to wait until the house is transferred to me.
Sorry to hear you’re going through this. My main concern is that you don’t have any income right now. How are you managing to live while also trying to pay off these debts? You could try calling the card companies and explaining your situation—they might lower your interest rate or settle for less. But even if they do, how would you pay it? Do you have a plan for finding a job or another source of income? Wishing you the best.
@Baer
I’m looking for a job, but it’s been tough, especially with everything going on. The lawyers suggested divorcing first to save the house, then selling it to get some cash. That’s the plan for now.
@Spencer
It sounds like you’re doing everything you can. It’s hard, but you’re moving forward, and that’s what matters. I hope the house sale helps you get back on your feet.
Baer said: @Spencer
It sounds like you’re doing everything you can. It’s hard, but you’re moving forward, and that’s what matters. I hope the house sale helps you get back on your feet.
Thank you. I’m just trying to figure out the best path while I look for work. I wasted a few weeks feeling stuck, but I’m filing for divorce next week, so things are finally moving.
You could try calling the creditors to see if they’ll lower your interest rate. There are also nonprofit credit counseling services, like those offered by United Way, that might help without charging you. Good luck!
Ask your credit card company if they have a hardship program. A lot of banks offer them, and they can help you set up a plan that works for your situation. They’d rather get something than nothing.
Holland said:
Ask your credit card company if they have a hardship program. A lot of banks offer them, and they can help you set up a plan that works for your situation. They’d rather get something than nothing.
I’ve never heard of that before. I’ll check it out—thanks for the suggestion!
I’d wait until the divorce is finalized before settling anything. If you can, see if the debt can be assigned to your husband in the settlement. If not, focus on your other priorities first.
Skylar said:
I’d wait until the divorce is finalized before settling anything. If you can, see if the debt can be assigned to your husband in the settlement. If not, focus on your other priorities first.
I was hoping to settle before selling the house so I wouldn’t have to pay the full amount, but the cards are all under my name, so it’s my responsibility.
@Spencer
They might settle for less since you don’t have an income. It could take a while, though. Have you considered disputing the charges as fraud? If the bank agrees, they might cancel the balance.