PostHeaderIcon What is the best way to payoff or settle my $80,000 credit card debts and bank debt?

Two months ago I maxed out all my credit cards and opened an unsecured personal loan because I needed cash for family emergency. Now I have approximately $80,000 debts from credit card companies and bank (all unsecured). After one month, I couldn’t afford to make the payments. For my situation, I don’t think I am able to payoff all the debt. What are my options now? When would the credit card company sue me? Can they garnish my salary? If the debt transfer to collection company, how much can I bargain off for a lump sum payment? Should I settle the payment myself or go to debt consolidation company? How many years the bad record would stay on my credit report?

I live in California. I’m working full time with $50,000 annual salary. The only property I own is a free-and-clear car (2007). I might able to borrower $20,000 from my girlfriend if a lump sum payment is offered.

Please answer as much as you can. Your help is much appreciated. Sincerely thanks.

7 Responses to “What is the best way to payoff or settle my $80,000 credit card debts and bank debt?”

  • Bob D says:

    2 options.

    credit card counsler.settle for half..keep your credit.
    2} .bankruptsy. chapter11, ruin your credit for 10 years…good luck

  • Anna! says:

    Maybe you should use the money from your job to purchase things instead of living outside your means and running up credit card bills. No family emergency should cause you to be 80000 in debt unless your house burned down or you got cancer or something and have no insurance policies.

  • Ski owl says:

    don’t borrow another 20k even from friend or family because you still owe it. you need to see a credit councilor they will work out a budget and work with the credit card companies to lower the interest.

  • sensored says:



  • Applepie says:

    There is a website for personal loan from average people. Sorry don’t remember the website. you can do a search, you should able to find it. But maybe you can get 600 people to loan you at $100 each at lower interest rate.

    This not the one I saw before, you want the loan do the work.
    Hell I might, try $100 lend to people, hope they dont screw me.

    Ok, here is the website, I find it.

  • rayt721 says:

    The collections process works in a sequence so you are pushing the process with your questions. You will get a series of phone calls and letters before they consider turning you to collections. It will then be in the hands of the collection agencies to sue you on behalf of the creditors. Yes they can garnish your wages and trust me, you don’t want that. The creditors (agencies) can get 25% of your salary off the top once they have such a judgement. It’s way too early to consider debt negotiation and with $50K of income you won’t qualify for bankruptcy with the new laws. You won’t get $80K of debt forgiven with $20K of cash. Why not speak with a free consumer credit counseling program in your state so you can get a legal response to your legal question(s)? The organization below only represents genuine and legitimate agencies not those scam sites you will probably be bombarded with. Don’t put this off. The longer you wait the more interest and problems you’ll encounter.

  • rustoria617 says:

    I’m amazed that anyone can borrow that much unsecured money.

    My wife and I worked for 40 years in good jobs and have excellent credit. Never had an opportunity to borrow anywhere near that much, unsecured. Certainly never would have either.

    Half the blame for the mess you are in lies with the outfits that loaned you the money. They should have known better.

    Go for credit counseling and agree to pay back 40K. Let them eat the rest.

    Chapter 11 is probably your only realistic option.

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