No. of Recommendations: 3
Oh, so you certainly don't have a net worth of $16,000.

You have:

2 cars: $16,000 (I think that valuation is rather high for used cars, but I'll take your word for it).
2 401K accounts with a total of $71,000.


$9,000 car loan
$40,000 CC debt

If you count the retirement accts, then your net worth is $38,000.

However, you should not consider the retirement accounts as money you can access now. The only assets you have to use to pay off your debt is the value of the cars. Since you need the cars for transportation, and it appears both you and your wife are working, you can't use those to pay off your debt, either.

So, you need to look at your income and budget to pay off your debt.

With $40k in credit card debt, it would appear that (barring a severe medical problem) you are used to living above your means.

Depending on your income, $49k could be a LOT of debt, or it could be manageable with good budgeting. If your income is $40k/yr, you're probably in big trouble and I can understand why you're thinking bankruptcy. If your income is $100k/yr, you should be able to make a plan to pay this off.

Print the post  


UGC Disclosure Notice Regarding Credit Card Posts
Community board discussions about credit cards are not provided or commissioned by banks who may have advertising relationships with The Motley Fool. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.