Advice? Not sure if allowed
Hi,
29 years old
As per the title, looking for opinions, advice on debt situation.
Currently looking at close to $30k in credit card pay later debt. It has been pushing me over the edge. To the point where i strategically have to pick which bills to pay to try and avoid further damage to my credit. I have 2 lates on my credit from affirm, but confused bc previously a mortgage lender told me they couldnt see those types of accounts?
Debating whether to file chapter 13, as i prefer not lose my house, i have a great rate from when they plummeted during covid.
Or
There is a decent chance my job will be eliminated this year and i should get a decent severance (maybe 10 -13k bases on tenure), and i have about 40k in my 401k. So maybe thinking try to hold out and just use this to wipe the slate clean?
I dont know which would be worse. Having the stain and payments for 5 years or depleting retirement savings.
On one hand im thinking if i used the 401k (if job is eliminated) i could just aggressively increase my % on contributions.
On the other hand, will the genuinely f me later in life and would be better to take the L and do the bk.
Thanks for reading