Line of Credit

[shane007]

Question about personal lines of credit...

I have CitiBanks's Flex Line for 9.5K- got in July, used it in October to try to consolidate(didn't really end up helping as much as I'd hoped it would). Anyway..being that this is paid in installments, is this secured or unsecured? I've made three payments on it so far, but things have gotten way out of hand...I admit, however, that I'm concerned by how this is one is looked at.

Thanks for any and all help.

[whywhywhy]

Unless it is secured by some sort of collateral, usually property, it would be unsecured. One potential problem you’d face is CitiBank objecting to the discharge of the debt, claiming you knew you weren’t going to be able to repay it when you did the consolidation. A lot of people on here have suggested 6 months – 1 year of making the minimum payments before filing in that situation.

[shane007]

Unfortunately waiting until next October isn't workable. I'm already stretched as thin as I can get. I'll be able to make my minimum payments until March thanks to a Christmas bonus of sorts as well as seriously skimping as expenses(cup of noodles for a few months etc), but after that it's going to be impossible to pay my almost 800 a month in minimums.

I took out that Flexline hoping to give myself breathing room, but ultimately it's more like rearranging deck chairs on the Titanic. By the time I file, it'll be five and a half months since utilizing the loan and I'll have made 4 payments.

[jp2861]

The only problem I see with making minimum payments is that it shows the trustee that you're financially able to pay your bills. If you're able to pay the minimums, why would someone be needing to file? I don't know if that would be looked at as abusing the system or not.

[jp2861]

Question about personal lines of credit...

I have CitiBanks's Flex Line for 9.5K- got in July, used it in October to try to consolidate(didn't really end up helping as much as I'd hoped it would). Anyway..being that this is paid in installments, is this secured or unsecured? I've made three payments on it so far, but things have gotten way out of hand...I admit, however, that I'm concerned by how this is one is looked at.

Thanks for any and all help.

I guess the first question you need to answer to yourself is if bankruptcy is something you will do. Once you answer that question, then you need a strategy that best suits your individual situation. Everyone seems to have different reasons and financial situations.

Mine is pretty straightforward, other than some messy balance transfers and cash advances, earlier this year. What I did was not touch the cards, payments or purchases, since July. I'm getting ready to file this month, which will make 6 months of transaction free accounts. My lawyer seems to think this is the way to go. I'm hoping (relying) that they know what will fly and what won't with the trustees here in my area.

[shane007]

I've been getting extra cash to pay the minimums by having less taken out of my taxes(and doing some OT). In past years I then paid this amount at the end of the year on a card. This year a credit will manage to clear out what I owe, but I don't have anything of the sort next year.

Thus, I've pretty much reached the end of the road with being able to use that tax space to pay my bills. I'd been banking on a big promotion, which ended up going to someone else. If I'd gotten it, would have made as much without playing with my taxes and I could have continued on for awhile. But as I am now, the interest has started catching up.

My monthly checks(now that I've dropped my tax deductions down to normal) come to 2200. My expenses are 2136 and my bills are 800. I've been literally cutting everything out to make it work. I just can't do it anymore.

As for paying the bills, pure stubbornness has me attempting to pay the bills until I literally cannot. By my accounting, that time will come in March.