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A financially overwhelmed Redditor who once had a perfect credit score and juggled multiple credit cards responsibly is now facing more than $177,000 in debt and thinking about bankruptcy.
In a recent post on r/CRedit, the original poster laid out a bleak financial picture: $118 in total cash and more than $160,000 in credit card debt spread across cards from Bank of America (NYSE:BAC), Barclays (NYSE:BCS), American Express (NYSE:AXP), Capital One (NYSE:COF), JPMorgan Chase (NYSE:JPM) and U.S. Bancorp (NYSE:USB). On top of that, they owe nearly $17,000 on a personal loan from SoFi (NASDAQ:SOFI) at a steep 12.66% interest rate.
“I used to have a perfect credit score and managed dozens of cards responsibly,” OP wrote. “But everything went downhill after I got screwed over by a crooked contractor.”
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According to the post, that legal battle has dragged on, forcing them to use credit cards to stay afloat. “I had to spend a huge amount on legal fees and the case is still ongoing, which completely wrecked my finances,” they said.
Once employed at a major tech firm earning about $175,000 per year, OP is now unemployed and receiving disability income.
The Reddit community responded in force. Hundreds of commenters advised filing for Chapter 7 bankruptcy immediately.
“You need to file bankruptcy,” one person wrote frankly. Another added, “Don’t even bother trying to pay it off. Much more worth it to just save up $3K for an attorney and peace of mind.”
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OP acknowledged that filing may be inevitable: “At this point, it’s either I burn out completely or just wipe everything clean through bankruptcy and start over.”
Some commenters warned about continuing to spend on credit cards, as it could affect the bankruptcy case. “Do not run any of them up prior to filing or they’ll hold you responsible post bankruptcy,” one person cautioned.
Others urged OP to think about the future now. “You know you’re super cooked, but after bankruptcy, what’s next?” one person commented. “You’re gonna burn some major bridges with the big banks.”