What to do with Huge debt?

A friend of mine has about 30k worth of credit card debts. It mostly came about from medical bills that he put on his credit card. He says he's paying 1500 a month JUST in credit cards at 27%, and he just can't pay anymore. He's considering filing bankrupcy. Anybody have any advice? I'm not sure what to tell him.

Got any more details...How old is he? How much $ does he make annually? Own or rent etc?

He's 21. He doesn't own anything. His debt is spread out on 4 different credit cards. I'm not sure what he makes annually as he is in construction. I know he makes about 19 bucks an hour.

See if he can get some kind of balance transfer deals. Any debt I have now on credit cards is fixed at 4% for the life of the transfer. Not sure what his circustances are though as far as credit or being able to qualify for a card that would offer that kind of transfer rate.

Man, hate to see somebody so young getting that deep in trouble...but at least he will have time to re-build his credit if he does declare bankruptcy and could theoretically have some credit established in his late 20's early 30's.

I would reccomend he check out...


Talk to a credit counselor...see if there are any re-structuring options...and about getting those interest rates down.  If he is at 27% it is pretty clear he has missed some payments, more than likely most companies will not accept him as a balance transfer (it is fucking sick that they extended him that much credit at age 21 anyway IMHO) But, the credit card companies do not want him to declare bankruptcy, so a credit counseling service may be able to negotiate better terms.

I tend to think bankruptcy might end up being the route, but avoiding it would really help his credit long term.  I believe I read once that if your credit card debt is equal to your annual salary, barring a tremendous jump in income you will never get out. 

Good luck to him and TTT

If he has no assets this is a no-brainer: Stop sending money, hire a lawyer, and file for Ch. 7 immediately!

Use the threat of bankruptcy as leverage to reduce or eliminate the interest.

If he files for bankruptcy, they get nothing.


File bankruptcy.

"Anybody have any advice?"

yeah, you start picking up the bar tab

Is he working 40 hours a week? Maybe he can get a 2nd job? Is he renting? Can he move home for a year? Lots of questions.. Bottom line is to drastically change his lifestyle and pay off the debt..it can be done.

He lives with his parents in Montana, where he also goes to school. As far as I know he has trimmed his life down to work and school. He works as much as he can work and still keep up his grades. I'm thinking he'll have to file bankrupcy or threaten to, as suggested above. Thanks guys.

Maybe he should put school off for a year?