Default on Credit Cards questions

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halfbreed23

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I've had massive credit card debt since I was 18 and have somehow been able to maintain it by paying minimum due and paying off cards as money was available.

I'm now 31 and it's finally caught up to me. I'm about 30,000 in debt and the minimum payments are way above my ability to pay them.

I have received a lot of advice on what I can do and some of it seems too good to be true.

First of all, It is not that terrible yet but it will be. The most I am behind is 30 days on two of my 9 cards. I have been unemployed for over a year. I'm trying to finish up school and I have essentially used credit cards to pay credit cards through that time.

Here are what I feel are my options.

Option1. I could pay off 4 cards for about $3500 by the first of September. That would not put much of a dent in my total debt but would cut me down to 5 cards. 2 which would be manageable and 3 that would not be.

I have been given the advice to just stop paying those three and let them go into default. The balances are $4800, $5700, and $5400. The adviser said that once the collection agencies start calling avoid them with number changes etc. When they start writing send them cease and desists and wait to see if they take me to court and that maybe they would simply write off the debt. Keep paying the payments on the 2 I keep and when the 7 years of bad credit is gone those two remaining cards will give me a decent credit score.

Is that a valid option? Will they be able to come after my home and/or car and/or income tax returns in my state?

Option 2. Bankruptcy. I don't think I am in bad enough shape for this option. I am only 30 days past due on 2 cards. I also do not know the significance of the recent law changes involving bankruptcy.

Option 3. Instead of paying off those 4 smaller cards, keep them and use the $3500-$4000 availble for debt negotiation with the big 3 cards.

I'm not sure what to do considering that my credit is going to be ruined regardless. I guess I'm just looking for advice on any other options and validity of option 1.

Any help is appreciated and thanks for your time.
 
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