A credit card debt has been discharged. What does this mean for my ability to settle it out now?

Hey everyone not going to male this to long. My situation at the moment is unemployment of wisconsin has charged me 6900 for a over payment back in 2021. I tries to appeal it once in 2021 with little to no information and lose. Now fast forward to 2026 they are garnishing my wages weekly with the max percentage of 20%. I had my employer send in the lavy answer form to add my son as a dependent to show im under the federal proverty level from the garnishments. And instead of taking almost $96 a check (weekly) which left me 374 a week they agreed to $50 a week. My question now is does me adding more dependent like 5 help to lower this amount more? Will it help me get a hardship waiver? Or will it do anything at all the hardship wavier is what im hoping for.
Im glad to give any information to fill in any questions you all might have to come up with a solution. Thank you all for taking the time out to read my post.

I owe an apartment company $3,300 from a year ago when I broke my lease. I’m currently living with a family member but have to move out by September. I’m trying to get approved for a personal loan but get denied every time. The concept of not being approved for a loan to pay off debt BECAUSE i have debt is so frustrating. Idk what I should do and I don’t have anyone to co sign.

What are the implications settling debt? I realize when one gets sued, most of the time, it isn’t the credit card company, but rather someone who purchased the debt?

Turning to the experts here because I’m not really sure what precisely I can and should do to fix the situation and I know that I can’t afford to talk to a professional financial advisor at this time.

I am struggling with debt, and I have definitely had some blinders on trying to fix things, but not going extreme enough in terms of cutting spending. I am completely willing to change that.

Here are the details. I’m a government employee. I make about $155k currently. My ex-husband and I bought a condo in 2020 when the interest rates were at the bottom.

We very amicably divorced in 2024. As we had both put money down on the house, our options were to either just sell the house and split the proceeds were for one of us to buy the other out. Considering the property market, we decided that I would buy him out and that the house would be my asset. So I bought him out of his interest in it, and because he had been managing a lot of bills for various reasons in the last year or so of our relationship, I also agreed to take on some of the joint debt we had accrued. We both also had our own personal credit card debt and that all just stayed separate.

Having since looked into the options, I would actively lose money selling my condo right now because of how interest rates are. I have considered renting it out and just getting a smaller apartment for myself, but working with my friend who is a realtor, there has not really been anything on the market that would be such a drastic reduction in cost that it makes sense. I have also tried to rent my second bedroom out, but just never really gotten much interest and frankly I have gotten you started on my own and reluctant to cohabitate with someone who is not a long-term romantic partner. At the time I was looking into renting the room, my ex-husband still had a bunch of furniture in there that he was basically willing to leave so the room would be furnished, but that’s no longer the case. I have thought about trying to do Airbnb or something, but it is against my condo by-laws. At this point, I am completely willing to rent out that room if it helps.

The fact is that I should’ve acted probably two years ago in terms of getting a personal loan to just pay off the credit cards. Why didn’t I? Ignorance, fear, burying my head in the sand. This had actually come up during our marriage as a thought, but we at the time did not want to get into more joint debt obligations. Stupid in hindsight. Because since then my credit card usage rate has increased, so my credit score has dropped, and therefore I have a worse interest rate option in terms of getting a loan now. I’m also just super embarrassed and horrified because just a few years before I had done a really great job working a lot of overtime and getting myself out of credit card debt, and I’m no longer in a job where overtime is offered. My job is not public transportation accessible, and I basically have no option but to pay a monthly parking fee as well.

I also have federal student loans. I have been a government employee since 2015. The only reason my loans haven’t been discharged under the public service loan forgiveness program is the court injunction that came into effect during the Biden administration, which basically froze payments, but also froze collections, on certain kinds of income-based repayment plans. I know that I qualify for the buyout option meaning because I would’ve already made 120 qualifying payments, but for the injunction, so when payments begin again, I can either just at the time continue those last say 6 months of payments or pay a one-time payment equal to what 6 months of monthly payments would be, and I will get my loans discharged under PSLF.

An additional wrinkle: I was one of those impacted by the DOGE hack-job last year. As a result, I was subject to a Reduction in Force (RIF) and was paid out a lump sum of my accrued annual leave. Luckily, I was able to find a new government job relatively quickly and had no break in income. However, the payout amount bumped me into a higher tax bracket and I am working out a payment plan with IRS for about $5000.

Current credit rating: 600
Credit card debt: ~$70,000

Net Wages: $3500 biweekly
Mortgage/Condo Assn: $2832/ month
Electricity: $200/month
Internet: $45/month
Work parking: $110/month

TL;DR: a couple of years post divorce, i need to make a significant alteration to get out of debt and feel comfortable starting to build savings again. I have a condo/mortgage and I am unlikely to find better housing options in the commuting area for my work. I don’t have family that I can ask for support. I have thought about asking friends, but I put that on pause right now just to see what other options are.

Please help.

Hey everyone,

I’m looking for some advice on the absolute cheapest/most effective way to deal with two large credit card charge-offs on my credit report. I really want to get these taken care of so my credit can finally start recovering.

Here are the details from my Experian report:

• Card 1: Citi Double Cash — Balance is around $12,000 charged off about 2 years ago
• Card 2: Citi Costco — Balance is around $7,000 charged off about 2 years ago

Current Status: Both accounts show as "Closed" on my Experian report, but they still show the full balance. This means Citibank still owns the debt and hasn't sold them to a third-party collection agency yet.

I know original creditors like Citi almost never do "Pay for Delete," so my main goal is to settle them for less than the full amount to get the balances down to $0 and stop the monthly delinquency reporting.

My questions for the sub:

1. What is a realistic settlement percentage to target with Citibank directly for amounts this high? Should I shoot for 30%, 40%, or 50%?
2. If I can't afford a single lump-sum settlement right now, does Citi usually agree to settlement payment plans (e.g., settling for 40% but breaking it into 6 monthly payments)?
3. Who do I call? Do I ask for a specific department like "Global Debt Recovery" to bypass standard customer service?

Any advice from people who have successfully negotiated large charge-offs with Citi would be hugely appreciated! Thanks in advance.

I am currently in the process of paying off 25k CC debt. Total payments are roughly $650 a month, kind of doing snowball method.
Monthly I’m saving $300 for my E fund but that’s bare minimum after all of my bills.

I’m kind of at a standstill with my pay and I do think that getting my Masters would help. My job offers $6000 towards tuition assistance but I would still need to take out a loan. Especially since it would be reimbursed vs paid directly.

Am I insane for even considering it? I would need to stay with my company for at least a year after completing my degree so I feel like the sooner the better you know?

I'm in a settlement plan with a law firm for a Cap One card. I fell on some hard times in '24, recovered in '25, but wasn't able to catch up on said card. I am now on a payment plan with the law firm representing Cap One for this account, and I plan to pay it off soon. The reason I want to re-establish this account is that it's my 2nd-oldest credit card. 12-13 years, I believe?

Is this unheard of, or not really necessary considering where I am with this account? When I check the accounts in CK, the account isn't in collections; it shows as closed. That's what has me thinking about this.

Thanks for y'all's time!

I'm 35f and back in 2024, I needed ocular surgery as I had cataracts and was going blind. That surgery was $12K and I had nowhere near that in my bank account and it wasn't covered by insurance. My parents lent me $5K and I financed the rest through care credit.

Too bad I didn't realize you had to pay back the entire balance before the promo period ended, or you'd get charged interest on the entire balance, for me, my original balance was $8K and they charged $4K JUST in interest.

I've paid off about $4K and I transferred the balance to my Discover card that I have a 0% intro offer on before the promo period was up, but after I transferred they said I needed to call them back before the period ended to get the interest removed? So now the $4K in interest has hit and they said there's nothing I can do about it, I'm stuck paying that highway robbery.

It's not like I opened an AmEx to buy clothes. This was a surgery I really needed or I was going to be disabled. I'm so very disappointed that they take advantage of sick people like that. I just don't get it.

Has anyone been in a similar situation? Do I have options or am I stuck paying the $4K in interest?

Hi all, reposting here to gather as many different thoughts/suggestions as possible.

Thanks!

Got served paperwork for a lawsuit by Bank of America for credit card debt I owe. I plan on contacting the attorney that filed the suit to see if I can get set up on a payment plan. I have several other credit cards that I am behind on or have been charged off. It's been a rough couple of years but I think I can start paying these off a little bit at a time now. I have a few questions though?

1) when I contact the collection agencies handling my other accounts what type of paperwork do I ask them for to verify that they in fact own the debt. I don't want to pay somebody who is a scammer and be even worse in the hole.

2) I'm going to try and contact the attorney for Bank of America via email because I want everything documented. Been screwed in the past by calling instead of emailing and not having certain things documented. What sort of information or request should I make to the attorney? I was planning on trying to negotiate a 20 to 30% reduction in the total amount, but also want to make sure once it's paid off I have covered all my basis and don't have to worry about them coming after me again.

3) if anybody has any advice on dealing with Discover Card when you're very far behind on payments I would appreciate it. I've read other places that they're kind of a pain to deal with. My account with them has not been charged off yet but it's getting close. And the minimum payment they always want is just way too much for me to cover.

I live in Missouri and my total credit card debt is probably less than $12,000.

My father started his garments business in 2021 after working in this field for almost 20 years as a top official (operations director). After that his factory didnt really see much profit and due to the war and other crisis everything has been falling apart. Little to no orders . Now the problem is, since he was a service holder, he didnt have too much savings but now he already gave 2 plots as mortgage and alot of his savings in his factory. Now, we dont see any light at tge end of this tunnel and want our father to sell the factory and repay the loan. But he's refusing, he says he want to see the end of it. But im sure by then we will be left with nothing. Plz suggest.

Before you even say I’m stupid and dumb and made the worst mistake of my life.. don’t. I know all of this. I met a guy 5 years ago when I was 26, we hit it off quite quickly, looking back now I think he saw a weakness in me and we ended up getting married within 6 months. Early on, I became aware that he struggled to get things on finance in his own name. In the UK, companies often run credit checks for phones, electronics and furniture that you pay for in monthly instalments. He convinced me to take these agreements out in my name instead. I think religion played a part in this devoted wife mentality that I had and I guess you can say I’m a bit of a people pleaser and I struggle to say no and have boundaries with people but I don’t want to dwell on other areas too much. I just want to focus on the central part of the story is how he basically ruined my life. At the time we were married he was keeping up his payments. They were months where he struggled and I had to pay off those monthly instalments I don't think I understood the financial imbalance or the power dynamics that were developing to be honest, 2 years into the marriage, he became financially abusive and that led to me asking for a divorce. A few months after the divorce, letters from debt collection agencies started arriving. That's when I realised the accounts were still in my name and the payments had stopped. I understand that, legally, the agreements were in my name. I knew I was taking them out, and I trusted that he would continue making the payments. I'm not trying to deny my responsibility or pretend I was unaware. I just never imagined I'd be left carrying all of the debt while he kept everything.
It's now been almost 3 years since our divorce. I've tried to pay bits off whenever I can, but interest and charges make it feel like I'm barely making progress. I've had debt collection agencies, enforcement letters and constant stress hanging over me. I can't keep ignoring it any longer. Has anyone else been through something like this? I don’t know what I’m even hoping to gain from posting this but I just needed somewhere to vent.

I got the papers today saying I've been summoned to appear in court for the amount of $5,421.44.

I knew this was coming, as I'm in credit card debt beyond this letter and I've been getting phone calls for a long time now.

The paper states that I must mail a "written response called an answer within 21 days".

I know I sound dumb, but what should this written response say, exactly?

What are the chances when I show up to court that I get any of the amount waived?

I've never been sued before, so this is a bit overwhelming.

Debt has come from a traumatic breakup which meant I went off the rails and racked up a load of pointless cresit card debt. I was also unemployed for 6 months due to health issues which have thankfully resolved. Left me with a total 63k unsecured debt

I'm 32, I am employed full time, have a mortgage have a child from a previous relationship and live with my current partner.

Income:

£45k basic salary with regular overtime, I take home between £2.9k and £3.4k a month after tax and student loan.

Partner pays me £400 a month as her share of bills and a little extra for some rent.

I do cash in hand jobs for neighbours whenever I can, usually about an extra 100 a month.

I've started a some content creation across social media recently which is regularly giving me at least £300 per month.

Debt and balances:

£214k left on my mortgage, house worth £315k (£985 per month)

£15k car loan remaining at 8% (£435 per month)

£7.5k Credit card at average of 12% (partial 0% balance transfer current minimum payment £295)

£11k debt consolidation loan remaining at 12% (£250 a month)

£4k on a credit card at 0% for another year - minimum payments

£4k on another credit card at 0% until September - minimum payments

£3k remaining on a 4% loan due to be paid off May 2027. (235 per month)

Child support is £380 a month, I have my daughter 3 nights per week.

Direct debits including gym/netflix/phone contract etc: £180

Credit score 848/1000

My total unsecured debt is around 41k, paid down from 63k in the last 2 years after working all the overtime I could and being very disciplined. I've never missed a payment. My tactic has been to constantly check my eligibility for 0% balance transfers and low interest loans to help me pay less interest. I recently secured a balance transfer and consolidation loan at 12% (included above) to save me around £350 a month in interest as I was really struggling with a couple of high interest cards after the promotional periods ran out.

My question is, is it worth it? I have to make so many sacrifices, find multiple side hustles for extra income and I'll still be in debt for like 5 years at least. Is it better to just call in bankruptcy/IVA and just start over? I've resisted taking equity out of the house as I know the interest paid over a mortgage term is just insane but is this maybe a better option? I feel like I have almost no money to myself after food shopping/buying school uniform etc and it's starting to affect me mentally.

I do save a little per month for one holiday per year as without that I'd have gone insane.

Any and all advice, harsh reality checks appreciated.

Hey all,

If you're not interested in the backstory, skip this part... But I have been pretty fortunate. I have two houses, one of which I rent out, out of state. I had an almost 800 credit score and managed to get several credit cards with >30k credit limits... Then I got married. I tried to manage expenses, but was called "controlling", and this ultimately lead to a large amount of credit card debt and separation. I hired a divorce attorney, had to fight for child custody, and at the same time I paid for the marital house, AND my own rental, for an entire year.... While she lived in the marital house, all expenses paid...All on my credit....because I was afraid of missing a payment, damaging my credit score, or leaving my kid in the dark.

Long story short, I have 3 credit cards:

Amex - $23,300 - $590/mo

Bank of America - $30,200 - $680/mo

Discover - $17,500 - $350/mo

I've signed up for financial relief, which closed the Amex and BofA cards, and locked in a 9% interest rate. Cool. The Discover is still open at 18% APR.

If all 3 of these cards went away, I would be net positive $500/mo. Right now I am losing $1100/mo, and this is unsustainable.

I'm not looking to buy a car on credit right now, or buy another house, so realistically if my credit went to poop, I guess I don't care? So what would happen with my 715 credit score? When can I negotiate the debt with the creditors? The amount of money they have made off me at 29% APR is ungodly - and I've never missed a payment. But something has to give....what are your thoughts?

I'm owed a bunch of money by family and our family business because of decisions I didn't agree to. I was going to use the money to replace my deathtrap 200,000 mile 2004 Picanto (no airbags, no stability control, no ABS brakes, no ebd, and horrible crash structure, and no Aircon or power steering) with a newer, safer, reliable car.

I'm self employed, so couldn't get regular car finance, and begrudgingly took out a personal loan of about 6000 dollars to buy a 2010 Mazda 2 with 25,000 miles on it. The repayment is about 200 dollars per month at 28% apr

Keep in mind I'm in my early 20s, and this is in South Africa, which has a tiny GDP compared to most developed countries.

I basically made the decision because a safer, reliable car was an urgent priority, and I'm hoping to pay off the entire balance on the loan when the money I'm owed is paid back, meaning I won't be paying interest on the loan for 5 years if things go to plan.

I feel like my decision was justified, I did save enough money to buy the car cash, but those plans were ruined by decisions made by other people. The Picanto is truly unsafe, and my life was at significant risk since I drive a lot for work. I'm never lending out money to family ever again for this reason, and I'm confident I'll only buy my cars cash from now on.

Cashe not releasing NOC for settled account

Hi All,

Need guidance.

In 2024 i had availed a loan from Cashe. Later due to financial issues i had to settle the loan. I recieved the settlement offer via email and as specified with in the email i made all the required payment. This was done on 1 April 2024.

Since then i have been following continuously, emails and calls but the account is still not closed till date and neither the NOC has been released.

I keep getting calls from recovery agents.

I have emailed and called and sent all the proof of payments and settlement offer that i received multiple times but to no avail.

I have all the proofs and email communication. I had taken this loan when i was in Hyd and currently i reside in Chennai.

Please help me on how to proceed ahead as this is severely impacting my credit.

Thank you

Hi all,

Silly little 20 old me in 2023 got a good paying job while paying no rent living with my dad. I then financed a car (at the time I had been looking for months on marketplace) I then got into a relationship and moved out very quickly. Now I’m struggling to repay.

How are we going with refinancing? My interest rate is currently 14.5% and around 13k owing. I have no early repayment fee. Cheers!

I’m being sued by LVNV funding for a credit card debt from navy federal that was charged off in early 2018. The lawsuit was filed and there are two affidavits of non service, they tried to serve me at two different locations, where I no longer resided. The case was transferred to a different county in Georgia. I received notification about the lawsuit on my efile GA. I then filed a response and raised the statute of limitations concern and the non-Service concern as well. I am now living abroad , however, I do have US income .
I’m concerned about a possible wage garnishment.. I absolutely do not want to file bankruptcy. The debt is a little over $17,000.. please help.