Hey everyone,
I have to face some really hard truths and need some advice. Long story short, I'm facing likely involuntary separation due to circumstances I brought upon myself (I've gone through a program to deal with it and help others through the same problem now).
I have $40k alone in credit card debt between my wife and I. Zero in savings, no house, one car payment of $600 a month. I am an E7, currently stationed in Korea with family back in the states in a HCOL area.
If I am retained in the military and PCS back to the states, I will be taking a heavy pay cut.
I was doing well with paying down debt (got under $30k before my situation happened, wife maxed out a $12k card I didn't know about). I am ashamed to admit that this is just too much, especially with a foreseeable pay cut or being separated from the military.
Should declaring bankruptcy be my primary option? Paying off the debt would take years and completely gimp any ability to save (I've had that rough talk with my wife and we are on the same page of saving now). What advice could anyone give me?
Feel free to roast me.
Posted by skyline_198X
4 Comments
[https://www.militaryonesource.mil/benefits/financial-counseling/](https://www.militaryonesource.mil/benefits/financial-counseling/)
Keep your head up and stay focused. It isn’t the end of the world.
You’re probably drowning because the interest rates on these credit cards are massive. I was in a bad situation like that too. There are programs out there that can help you pay it off—for example, loans with very low interest rates that take over the debt so you can actually pay it down. Another option is to try settling the debt, but that usually means letting it go to collections first. The problem with that is it could cost you your security clearance if you have one. I’m not in the military yet check if there are any loan programs to help you.
Before doing anything, seek advice/counseling/recommendations.
Your goal here is to avoid violating Article 134 of the UCMJ, for a “dishonorable failure to pay just debts,” and most importantly, impacting your Security clearance.
Seek out assistance with AFAS, AFRC, and Military One Source.
It would probably be a good idea to stop by at Legal, too.
I found this link, too. Kinda old but still useful. My ex. A civilian was in similar shoes and took bankruptcy per her counseling recommendations. It took 7 years to clear. Would have taken 10 years to pay off otherwise. Just have to weight the pros/cons of both options.
Hth Skyline.
https://www.reddit.com/r/AirForce/s/XtYMOwfZMJ