I’m a single parent and I’m currently drowning in credit card debt. My income barely covers my bills, and I’m having to put essentials like daycare, car insurance, and sometimes even food on my credit cards. This has become unsustainable, and I’m struggling to keep up with the payments.
Here’s a clear pic of my situation:
I have a total of 4 credit cards.
I’m currently making payments slightly above the minimum balance, but it’s becoming increasingly difficult to manage.
I feel that consolidating my credit card debt into one payment might help me manage it better, as I could make a single $800 payment instead of four $200 payments.
My credit score was in the 700s the last time I checked, but I don’t own a home or any valuable assets.
I’m considering whether bankruptcy might be a viable option for me. What would the process look like, and what are the potential impacts? Are there any other debt relief options that I should explore before considering bankruptcy? TIA
Consider debt consolidation through a personal loan or balance transfer credit card. Bankruptcy is a last resort
consult a credit counselor first. They can guide you on consolidation, budgeting, and other relief options.
When I found myself overwhelmed by credit card debt as a single parent, I faced a tough choice between consolidating my debt and considering bankruptcy. I was making minimum payments on multiple cards and struggling to cover essential expenses, similar to your situation. I looked into debt consolidation, which offered the advantage of a single monthly payment, potentially easing management. Bankruptcy was also on my radar, but it seemed like a last resort due to its long-term impact on my credit. Before diving into bankruptcy, I explored other options like debt management plans and negotiating with creditors. I found that assessing all alternatives and consulting with a financial advisor helped me make an informed decision, balancing immediate relief with long-term financial health.
