r/Debt

It all started in school, when this guy wanted to 'sell' something on my account because I had good reviews, so I lent him my account and then him and his friend added me to a group chat after I gave him my login details and explained that it was actually fraud that was going on, and by the time they told me they already had a lot of my information about my Ebay account, and they also even said they needed my passport, which I stupidly showed them because I thought I could trust them as they were from school. They then reassured me they would give me 100 pound to do what they wanted me to do, which was pretty much use the account for fraud, and i had no choice but to listen at that point. They then attempted to do fraud, and then i panicked and i removed my bank details from ebay in an attempt to stop them. They got really mad and threatened me, but they obviously went to my school so I knew they wouldn't do much, but they had all my details like where i live, as this is on Ebay. As a result they didn't get to do fraud on my account, and the buyer got refunde, but ebay keep sending me emails saying avoid referral to a debt collector, its been a few months, and the amount owed is 2.2k, which is a large amount. What should I do? I'm not doing the best financially, do I have to pay it? I really need help, will this affect my credit score? I just want this whole thing to end. the only evidence I have is their names, and also a screenshot of the person saying to move money into this account and then this account. thats all

For starters, yes I know I’m an irresponsible idiot, but life happens.. lol but I accidentally got myself into $24k credit card debt. My utilization is like 97%, so i can’t be approved for any consolidation loans or 0% intro cards. My salary at my full time job is $60k, but I’m still living paycheck to paycheck and not making a dent in the debt. Does anyone have any recommendations or any side hustles they recommend? I’m scared of bankruptcy because I need to get a new apartment in like 8 months

I have about $55k in credit card debt and it’s killing me with the aprs that have gradually been pushed into the low 30% range over the last couple years!! This is not due to irresponsible spending. Mostly, it’s an income problem combined with my life being a series of unfortunate events. After a few layoffs, I am now getting full-time hours but still only at $50k/yr net. So, I’ve been living off my cards, essentially, being un/underemployed, surgeries, etc.

My savings is basically wiped out. I have a retirement account from a previous job that I haven’t been able to contribute to for several years but I refuse to tap into it. I’m paycheck to paycheck and have nothing left to save after all my payments/bills are made.

My fico score was 696 as of today and I’ve never been late nor have I missed a payment. My credit utilization is 56%. I’ve previously called creditors to have my aprs lowered and was straight up told no. And at the time I had a 750 fico score. Not sure if I should muster up the energy and try again. Last year, I applied for a consolidation loan but was rejected (first time ever) due to my debt to income ratio and a line of credit that was relatively new (for a balance transfer). Should I try to apply again or should I just go straight to the nfcc and start a debt management plan? My concern is how this would affect my need to get housing/rent in the near future. Any insight on that?

I just don’t know what is the best first move now. I actually want to pay back what I owe but with 33% aprs that won’t happen. Such high interest rates should be outlawed, in my opinion. But that’s another conversation. So yeah. If you have any helpful advice, it would be appreciated

I’m getting sued by portfolio recovery for a credit card I couldn’t pay back in 2020. I am recently separated and didn’t even see the summons until now and my court date is the 26th of this month. I called today and asked to settle for a VERY low amount(I figured they wouldn’t agree) but it is quite literally all of the money I have and I don’t have any income. What do I do? I’m a newly single mother and have no wages but I worry about them messing with my exs wages since I’m still on his bank account. They want to set up payments but I have no income…… what do I do? I can’t pay the whole amount or even close to half

I was served with a complaint from Velocity Investments LLC in King County District Court. Original creditor was FinWise Bank / Upstart loan. They're claiming $36,343 but the chargeoff principal on their own documents shows $32,977 with no explanation of the $3,365 difference.

Looking for anyone who has dealt with Velocity Investments specifically or has experience with debt buyer lawsuits in Washington State. or in general

Some things I've already identified as weak in their complaint

No bill of sale attached proving chain of ownership

Balance claimed doesn't match their own chargeoff documents

Payment history is raw database spreadsheet with no authenticating affidavit

Promissory note says "copy of original"

No explanation of how the balance was calculated

Questions for the community:

Has anyone dealt with Velocity Investments in WA state?

Did they produce a proper bill of sale when challenged?

Anyone successfully challenge their affidavits or balance calculations?

Any experience with their attorneys (Brendan Wilson / WSBA 47420)?

just in June or July they had mailed me a settlement offer for 6k. I don’t have that. I can maybe get together 3k

There is also an arbitration clause.

I need to stall basically for as long as possible. I have a separate law suit with a payout I don’t learn the pay out till 9/28 and more of a timeline till then.

I have a charged-off Discover account with a balance of around $12k. I recently received an Attorney Referral Pending notice and contacted Discover directly.

They gave me two main options:

Option 1: Pay around $120/month for 3 years at 0% interest with no late fees. At the end of the three years, I would still owe around $7k–$8k. The rep said I could call at that point to see what settlement options are available, but there's no guarantee what percentage they would offer.

Option 2: Settle the account now for about 50% of the balance, or roughly $6k, spread over 2 years. The monthly payment would be around $240–$250. Upon completion of the agreement, the debt would be resolved.

Discover confirmed that either arrangement would stop the legal referral/action as long as I comply with the payment arrangement.

I asked whether they could extend the 50% settlement over a longer period to lower the monthly payment, but they wouldn't extend it beyond 2 years.

My dilemma is mostly cash flow. I have some significant household expenses coming up and my utilities increase quite a bit during the winter. The ~$120 payment would obviously give me more breathing room, but I hate the idea of paying for three years and still having a substantial balance.

My budget is currently pretty tight and I don’t have much left over between paychecks, so the higher settlement payment would require some budgeting changes and possibly weekend gig work.

My credit is already in the 600s, so I'm also wondering how much difference there really is between continuing payments on an already charged-off account versus settling it for less.

For anyone who has dealt with Discover specifically: Would you take the ~50% settlement and be done in 2 years, or take the ~$120/month plan for the breathing room and revisit settlement later?

I'd especially appreciate experiences from people who settled a Discover charge-off and later rebuilt their credit.

TL;DR: Discover offered me ~$120/month for 3 years with a balance remaining, or ~50% settlement over 2 years and I’m done. Which would you choose?

You think it’s best to go through a program like national debt relief? or pay off the individual collection companies with the smaller payment plans they offer.

im about $28k in credit card debt

Hello,

I work in the government making 94k. I was drowning in debt with credit card before i started making this money. 28k max over 3 cards, i took out a loan to consolidate but due to being undisciplined and the economy the cards are maxed again. What options do i have? I have learned my lesson and financially being responsible now. Even making more money than i was when i got in this debt, but it’s a lot to manage and still keep afloat. Honest opinion please. I’m thinking bout bankruptcy but don’t know how that will impact my job.

I’m considering filing Chapter 7 and I’m completely new to this, so I’m hoping someone can explain what my first steps should be.

I have about $10,000 total across 10 credit cards, and that is basically all of my debt. I don’t have a mortgage or own a home, we rent. The only significant asset in my name is a paid-off 2006 Honda Accord worth maybe around $3,000, which I absolutely need for transportation/work.

I’m currently not working. I had to leave my previous job because it required full-time overnight hours, which was no longer possible after having my baby. We also cannot afford daycare, so going back to full-time work isn’t financially realistic right now.

I am actively looking for part-time work that I can schedule around childcare. I have applied to 20+ jobs and haven’t been hired anywhere yet. My father-in-law is willing to watch my baby during the hours I eventually work, but I still have to find a job that works with that arrangement. I also recently filed for unemployment and it looks like I may receive benefits.

My husband is working and supporting our household, but he has his own debts and we can no longer afford to keep paying mine. We’ve been budgeting heavily and have reached the point where we can’t even afford groceries on our own. We’re relying on food banks and help from family for food. I had to turn off autopay on my credit cards because there simply isn’t money available to continue paying them while we’re struggling with basic necessities.

I would be filing Chapter 7 individually, without my husband filing.

For someone with a relatively simple situation like mine, what should my first steps be? Should I contact a bankruptcy attorney first? Can someone in my situation realistically file without an attorney? What documents should I start gathering, and is there anything I’m overlooking?

My biggest concern is making sure I can keep my paid-off car, since it’s my only significant asset and I need it for transportation and eventually getting back to work.

I know $10k may not sound like a huge amount of debt to some people, but with no current income of my own and our household struggling to afford basic necessities, I simply cannot keep up with it anymore. I’ve never filed bankruptcy before and genuinely don’t know where to start, so any guidance would be appreciated.

ive done:
Putting $ each paycheck when I finished budgeting the money. Im tired.

Using taxes refunds to pay off

Bonuses to pay off.

Im tired. I want to travel and give my kids experiences. They are little once.

I am 26 and have made the poor decision of coping with my depression by purchasing stupid stuff and edibles. I have wasted so much money, it’s ridiculous, and I’m done feeling like a failure. I have around $32,000.00 in CC debt, and I have been wasting my extra money each month, instead of trying to fix the problem.

I have two jobs, one that is not consistent, so I am looking for a more consistent job in that regard. I make around $42,000.00 per year, but am actively interviewing for other positions.

Any advice would be incredibly appreciated. My debt is still under my yearly income, so that gives me some hope, and that’s not including a consistent part time job. I’m done being miserable and letting myself feel suffocated.

have two balances: one for southwest and one for Chase freedom unlimited that total 4,958. for context im in PA school with no income and can’t keep up with my MMI payments anymore. so going to ask Chase to settle for 1,200 when i get my semester refund. what are the things i need to ask for in writing to limit the hit on my credit report? thank you

*Using a second Reddit account to try to protect identity

I’m 30, make about $90k/year and take home around $4,800/month. I’m pregnant with my first baby and due later this year. It’s a higher risk pregnancy and there’s a possibility of an early delivery/NICU stay, so that’s adding to my financial anxiety.

Mortgage: ~$180k, house worth around $250k
My share of the mortgage: $773/month
Car: ~$46k left, 0% interest, $673/month
Car is worth around $35k, so I’m about $11k underwater
Federal student loans: ~$82k
IDR payment should be around $416/month
Credit card debt: $0
Personal loans: $0
Savings: ~$13k
Car insurance: $102/month
Phone: $55/month
Childcare once the baby is here: $35/day
Electric/urilities: ~$200-300

I know the car payment is going to stand out. We do need a car because of work, appointments, childcare, etc., so going without a vehicle isn’t really an option. I’m also about $11k underwater on it, so selling it would mean coming up with that difference and then still needing to buy another car.

I’ve been freaking out a little because the student loan payment plus the car payment feels like a lot, especially with a baby coming and the possibility of NICU/medical bills.

I’ve even wondered if I should talk to a bankruptcy attorney, mostly because I’m so underwater on the car, but I don’t know if that’s completely overkill considering I have no credit card or personal loan debt.

So my husband and I are considering getting a home equity loan and I'm trying to decide if it's worth it or not or if we should just save up and wait it out.

We need to get a new roof within the next couple of years which will be around $20k, we have some tax debt around $5k, some CC debt around $8k, my student loans that are left around $4k and would like to also do some various updates around the house whcih I imagine would cost around $10k.

Our current mortgage is around $192k and our house is valued on Zillow for $370k (I know, I know, Zillow isn't accurate).

The only part I'm really hesitant about is 1. what the potential monthly payment would be and 2. My husband does not have a good credit score as he is riddled with student loans, technically I own the home with my mother and was purchased before my husband I got married. My husband, mother and I have an Occupancy Agreement stating basically my husband and I are responsible for the mortgage and all upkeep of the property and basically my mom is on the mortgage as a co-signer is is not financially responsible, etc. I'm worried my salary won't cover the potential HELOAN and I don't believe we would be able to get it by including my husband. I don't think my mother would have an issue with co-signing and of course consenting to the loan in general.

But I'm wondering, is a home equity loan a good idea for what were looking to do? Is it worth it? Can only one of us apply and would be mother be able to co-sign with me to include her income?

TIA! 

Back in 2019-2021, I was making insane money (relative obviously.) Long story short, I racked up what looks to be $20-30k in debt.

I spiraled after losing my job and stopped paying on the four cards between June-August 2024.

This includes three accounts now with Midland Credit Management (MCM), for a total of over $20k. I have a third account with WF charged off but totals like $9-10k. Accounts were with Capitol One (2), Chase (1), and the WF card.

The three MCM accounts report, the WF account shows as charged off.

Finances:

• I am now in a healthier financial situation. I make over $100k now for the last 2+ years, have no debt other than what I'm on the hook for. Cars paid off.
• My partner (not married yet) just started her business and is making $70-80k this year. If all goes well may be 80-100k in the next few years.
• We have a healthy amount saved up for a down payment (over $50k), have family money coming in for that down payment too, but likely targeting an FHA loan in the next 2-3 years once her business income matures and my credit recovers.

Legal:

• WF threatened legal action in 2025 but nothing came of it. No court record of the procedure.
• MCM has threatened legal action a number of times but has yet to begin proceedings. I perhaps naively think this is maybe just too low of them to go after considering legal fees but probably wrong on that.
• (EDIT: on a whim i searched my name on court records. WF did in fact file to sue for collections in court in early 2025 but did not serve me. They have about 6 months until the next hearing to serve me and apparently they get fined if not. Strange it's a two year gap there)

My questions (I'm in California for reference):

1. Should I negotiate with MCM? I'm over 2 years out from no payment. I understand in California they have four years to sue me. Debt should fall off by 2030 if no action is taken.
2. If yes to negotiating, should I use any tactics like referencing the age of debt? Do I threaten to go BK? Should I start negotiations at 20%?
3. When negotiating, is it feasible or advised to negotiate with MCM as a bundle with all three accounts?
4. I have debt validation letters prepared for all three accounts addressed to MCM. I have not sent them. Is it even worth doing so 2+ years later?
5. Any other tips? I have some secured cards with max 10% usage I'm putting toward small recurring bills and paying off every month.

Really appreciate any pointers anyone is able to offer

I wanted to know if this would be sensible, I've got ~12k credit card debt across 3 cards coming due the 28th this month. We'll have the money in the bank by then, but that would leave us with ~2k in the bank account after. This month had a lot of things that were very expensive come up, usually our credit card debt per month is ~6-7k.

Would it be worth it to transfer the debt to another card and pay it off (which would be no problem) in 20 months, or should I just pay off the debt and make sure we cut our spending the next few months.

If it would be worth in in your expirence what are the best cards out there currently for rolling that amount of debt for ~12k.

Thanks!

Need advice as I'm in a good and bad situation.

The Bad: I am roughly $20k in Debt via CC debt. I have debt mainly from living overseas with my wife having to extend payments, process hospital bills from early miscarriage, moving three times due to dangers and flooding issues, etc. Also for buying a generator, and at time excess spending when I was craving fast food, but mainly because I did not get my guaranteed contract job as I was initially offered when I moved abroad.

The Good: I have the best wife ever. She has helped me to navigate this, going over numbers, crunching plans to cut costs for living and reduce future bills. My wife is SAHW by our mutual agreement, but she always offers to help out as needed (again, awesome wifey.) The other good news is, I am moving back to the US in October to start over and rebuild from my debt. I do have a decent retirement account but I want to avoid further tax implications as I already drained my brokerage of $20k to live off of both before and after the contract job failed.

I hold an MBA, but now have no car or apartment to stay at, and my credit score dropped 751 to 643. Any advice on what immediate plans I can do to aggressively pay off debt in a year or two? Wife will be living abroad as we await her I-130 visa to clear, and thanks to her planning, we found a cheap all-inclusive AirBnb for her to stay at abroad so I can pay that easily. Thx.

I spent nearly 25,000 on a credit card from Navy Federal and did not pay it over the course of the last six years. I have received multiple letters now from lawyers saying that I am being sued. Idk who is suing me, I do not have the money to pay this off and I’m not even sure who the debt is through. What are my options?

Hi I have $65,000 credit cards debt, earn $64,500 before taxes, a house paid off which $180,000 more than homestead exemption. After deducting all food, medical bills, utilities, insurance, HOA, property tax, I have about $700 left each month. I have had a hard time from divorce with 2 kids 3 years ago plus health conditions which I can’t pay minimum for all cc debt. I tried to work side hustle but couldn’t do much because of my health issue. I contacted DMP & Debt Settlement, but their monthly payments were still too much for me to afford.

What is the best way to pay them off (Debt management plan, debt settlement, bankruptcy chapter 7 or bankruptcy chapter 13)?

Thank you 🙏🏼

if I stopped making payments today how long will it be til I get served lawsuit papers? I have credit card debt with citi bank, chase, and amex. I want to stop paying for just one month so I can save some extra money up