Congratulations! You've Ubered and Grubhubbed and online-shopped your way into credit card debt. Now you're an adult who's incurred enough debt to make a credit card company very frustrated with you. Welcome to the maxed out club!
The first time you realize that you've maxed out a credit card, you may panic, but there are many recourses you can take that aren't openly advertised by credit card companies. Some will impact your credit score more than others, but if you've come this far, you've probably realized that a credit score is just life's homework, and there's always a way to half-ass the assignment during homeroom.
File for Bankruptcy
No one wants to file bankruptcy. I don't want that for you, and I don't even know you. But in certain situations, it can be the best way out. The most important thing to do is to thoroughly do your research, evaluate your debt, and assess your long-term financial goals to see if filing a Chapter 7 or a Chapter 13 bankruptcy is the right move for you. Are you clear about the differences? (Mainly, you still pay a portion of your debt through Chapter 13). Do you know that you can only file bankruptcy once every 8 years? Are you aware that you are not forgiven for any student loan debt, child support, alimony, or tax debts if you file? Do any of your loans involve cosigners?
If you choose to file, your credit score will take an immediate hit, but you can begin building up good credit again as soon as the debt is forgiven. It can take as little as one year to re-build good credit after filing, but it's precarious if your circumstances and spending habits haven't changed.
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