
Quoting
studenomics
I'm an early 20s graduate student in Pennsylvania and I have more debt than I can handle. The majority of my debt ($8,000) is credit card debt. I also have about $500 in medical expenses. It’s very difficult for me to cover all of my monthly expenses (rent, car insurance, electricity, food) + the minimum payments on my credit cards (3 at $120/month).
I’m considering filing for bankruptcy to make things easier. The time it takes to clear from my credit record seems nearly equivalent to how long it would take to pay off the cards, given I can barely make minimum payments.
I don’t have any assets to lose, and I don’t make much money. (When employed, I average $1000/month.) Would it be a good idea to file for bankruptcy in this situation?
Alternatively, should I let some (or all) of the cards go into collections? I've been late on a few payments but never late enough to damage my credit, usually just a few days (all of my accounts are listed in good standing on my credit reports). Still, I'm extremely close to the maximum on all 3 cards and can barely afford to make minimum payments.
Any advice would be appreciated.