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They Managed 'Dozens Of Credit Cards Responsibly'—Until They Didn't. Now They Owe $177,000 And Can't Find A Way Out. Here's What Happened
Yahoo Finance·2025-10-19 22:32

Core Insights - A Reddit user, previously with a perfect credit score, is now facing over $177,000 in debt and considering bankruptcy [1][5] Financial Situation - The individual has $118 in total cash and over $160,000 in credit card debt across multiple banks including Bank of America, Barclays, American Express, Capital One, JPMorgan Chase, and U.S. Bancorp [2] - Additionally, there is a personal loan of nearly $17,000 from SoFi with a 12.66% interest rate [2] Employment and Income - The individual was previously employed at a major tech firm with an annual income of approximately $175,000 but is now unemployed and reliant on disability income [4] Community Response - The Reddit community has strongly advised the individual to file for Chapter 7 bankruptcy, with many suggesting it is the best course of action [5] - Concerns were raised about the implications of continuing to use credit cards prior to filing for bankruptcy, as it could affect the bankruptcy case [5] Future Considerations - Commenters urged the individual to think about post-bankruptcy life and the potential consequences of damaging relationships with major banks [6]