My Situation -- Scary Credit Card Debt due to compulsive shopping

[NickL281]

Due to years of compulsive shopping, I have racked up around $70,000 of credit card debt. I am single living in CT making $75,000 and literally do not have money to pay rent -- $1865 a month, credit cards & other expenses. I get paid once a month. It has gotten to the point where I frequently go into overdraft on my checking account and get charged a $35 fee.

My APR's are sky high on some of the cards & I can't get them reduced.

Ex. B of A - $18,000 @ 19.99
WAMU (formerly Providian) $5,076 (overlimit) @ 31.99
Chase $2,500 @ 29.99

That is just a fraction of the overall debt.

I was unemployed for three months and needed to accept the first offer. Prior to this I was supposed to be on a 1099 contract assignment which paid $50 an hour thru end of August but they terminated the contract at the end of January. I lasted 3 months until they suddenly decided they 'weren't happy with my performance'

I know that I need to take responsibility but I have been taking medication for Depression, ADHD, and a mood stabilizer. Prozac made me feel on top of the world but made my compulsive buying even world. Different psycs added more meds.

There have been other issues as well. I have burned many bridges and my employment history isn't the greatest (4 jobs since January 2007). Currently my FICO score is at 613 and I am making the min payments. Also owe $2,800 in back taxes, need close to $600 in car repairs, $1,500 for dental bills and more.

[justplaintired]

You seriously need to talk to a good attorney, see more then one, most will give you a free consultation. Get some advice. Your income would be based on the last 6 months so gather up what you have to prove what you make. You need to do something quick, paying for a place to live has to take priority over cc debt. After the holidays make some appointments and find out what your options are.

Try to enjoy the long weekend ahead and be ready Monday, oops I mean Tuesday! LOL, to speak with someone who will know what you can do. It could be that your income will be less then you think if your employment has been sparse over the last year.

Good luck and don't give up, things will work out!

[Phillymanhere]

Hey Nick,

Welcome to the forums. This is a good place for folks to begin the process of financial and emotional recovery.

You mentioned depression and various medications and an issue of compulsive shopping. Along with visiting an attorney, I humbly suggest you find a counselor/therapist who can work with you on this issue. After all, you don't want to declare bk and then turn around and continue the compulsive spending. So you want to address that. I'm an advocate of meds via psychiatrists (take some myself), but you probably also need some in depth counseling. Cognitive Behavior Therapy is highly recommended by many folks as a short-term practical form of therapy.

I don't know if there is a 12-step group out there for compulsive shopping--there is one for compulsive debting--but I have gotten help from 12-step groups and have plenty of friends who have dealt with many addictions in 12-step groups. Just attending meetings and meeting other people gives a boost and breaks some of the isolation and shame and also exposes you to many techniques for overcoming the problem.

Anyway, good luck.

[sisterfunkhaus]

I am a compulsive shopper as well. Debtors anon is great for that. I went through an outpatient therapy program and finally feel in control.

[JRScott]

Due to years of compulsive shopping, I have racked up around $70,000 of credit card debt. I am single living in CT making $75,000 and literally do not have money to pay rent -- $1865 a month, credit cards & other expenses. I get paid once a month. It has gotten to the point where I frequently go into overdraft on my checking account and get charged a $35 fee.

My APR's are sky high on some of the cards & I can't get them reduced.

Ex. B of A - $18,000 @ 19.99
WAMU (formerly Providian) $5,076 (overlimit) @ 31.99
Chase $2,500 @ 29.99

That is just a fraction of the overall debt.

I was unemployed for three months and needed to accept the first offer. Prior to this I was supposed to be on a 1099 contract assignment which paid $50 an hour thru end of August but they terminated the contract at the end of January. I lasted 3 months until they suddenly decided they 'weren't happy with my performance'

I know that I need to take responsibility but I have been taking medication for Depression, ADHD, and a mood stabilizer. Prozac made me feel on top of the world but made my compulsive buying even world. Different psycs added more meds.

There have been other issues as well. I have burned many bridges and my employment history isn't the greatest (4 jobs since January 2007). Currently my FICO score is at 613 and I am making the min payments. Also owe $2,800 in back taxes, need close to $600 in car repairs, $1,500 for dental bills and more.

Welcome

We all come here with problems that led us to bankruptcy and almost all of us spent beyond our means at one point or another so your not alone.

First thing is to prioritize your debts.

You have to pay food, housing, utilities and transportation before anything else. Next I'd prioritize your car repairs as you need transportation, then the back taxes (they can't be discharged), and then the dental bills. Pay all of this before paying any credit card. (The dental bill is dischargeable but you might need to see the same dentist again ).

Now is the 75k what you made last year or is that what you think you'll make at this new job? If its what you made last year but not what you'll make this year you might still be okay. What's important to determine income in a bankruptcy is what you made in the last 6 months. Take that amount and double it and that's what you'd use to compare to the median income of your state for the means test. Don't give up hope if you are above the median income just fill out the rest of the means test and see where you are.