MasConcepts Incorporated

There’s a lot of emotions I feel typing this. But it is just surreal to me that $84,000 in unsecured debt with an average interest rate of 25% is about to be erased in a chapter 7. I tried my hardest to pay it off but the dam broke when I got laid off 4 months ago and counting. At the very end it was $2787 in monthly payments spread over 5 cards and 3 loans. I was being a good little debt servicer by paying on time or even extra but it made no difference. But now, it’s clear as day to me that I was just paying Chase and Citi just to stand still.

I got into credit cards like probably most other people here: as a convenient way to purchase things. I opened a Discover card in 2015, two years after I finished college. I was very responsible and always paid on time and more than the minimum (or at least as much as I could). But then I had a car I had to pay for at $475 a month and rent to pay for with friends, etc. It didn’t work on a then $37k salary. So more credit just to “kick the can down the road”. Some Chick-Fil-A here, some Wal-Mart there, some gas elsewhere – just to smooth consumption.

In my early 20s, I thought I would just continuously make more money so I would pay it all back. Then several things happened where I was under/unemployed for years at various jobs. Income was stagnant. I started having more responsibilities emerge as I went through my 20s. Then came emergencies, traveling (family events, bachelor parties/weddings), appliances, medical care, and even trying to “move money around”/financial miscalculation – I ended up with a tangle of cards and loans at different due dates and different minimums. I had become a part-time debt orchestrator. Even higher paying jobs didn’t help.

I was making $65k in 2021 but then I still found myself paying quite a bit for things. Savings would quickly dry up and I probably had ~$60k in debt then. A few more balance transfers, low/no APR cards, “special offers” in your mailbox, and we were then fighting a math problem. Three years ago, I started making $75k/year which is enough to live very well as a single man in the US. But I always felt like I was sucking air through a straw week in and week out.

I read a lot of personal finance books and watched a lot of videos, know all the financial “gurus”, knew about budgeting, snowball/avalanche, was into FIRE, knew about emergency funds, paying more than the minimum, etc. None of it worked for me because I was too deep in.

Two signs I knew it was time to call for help:

1. My severance from my job was ~$8000. That should have been enough to last me quite some time + unemployment. Instead, it got slurped up by my credit cards. I paid $7500 to my credit cards over the course of three months (had a pause on loans, luckily). This was in an attempt to “get ahead/pay down” because I thought I was going to get a job relatively quickly. I was trying to create as much oxygen for myself as possible. But then when card limits started getting hit and January turned into February turned into March which is turning into April, I knew things were unsalvageable.
2. When I got a double payment. I missed the two payments. The Discover I had at $18,000/$341 last month and then it doubled on me with this month’s minimum payment. Now the minimum is $711. Citi did the same at $655. I have until the 28th to pay those off before it hits 30 days late and gets reported. I filed yesterday.

Looked up several bankruptcy lawyers in my state, contacted 3, was qualified immediately over the phone by one. Single, no dependents, no home, owe no taxes or other debts, un-flashy lifestyle, paid off 8 year old car. “No brainer. This will be a clean exit.” he said. He said cases like mine are common and becoming even more so. He did thank me for being proactive instead of waiting when everything is going to melt down.

Even though I’m early, I STILL wish I did it even at the end of last month. But financially, everything seems to be working out for me now better than it would last month.

To anyone out there reading this and is in my situation, please reach out to someone and explore your options. If you track your money and do the math, just please have enough courage to see if this is an option.

To everyone else reading this please keep the faith! There is hope. Thanks for reading!