So I'm considering just letting my credit card debts go unpaid till they close. (The goal was to find some way to pay it off but I need to consider the worst possible case)
The reason why I'm considering this is because I'm trying to AVOID declaring bankruptcy. However it seems when bankruptcy hits, your credit score is still 0 whether or not you tried to fight until you absolutely have to declare bankruptcy.
My question is actually whether either is worse than the other, rationally or numerically?
My biggest issue is being able to pay off credit card debt (6 digits across multiple cards).
I'm a tech nomad. I don't have any large assets such as homes or cars. (I'm a city dweller where the rent is too expensive for any of us youngsters to ever own a home anyway.)
Update: in short, my question can be summarized as: does anyone know what the exact quantitative effect (and through time, rebuilding my credit afterwards) on these two options are on your credit score?
Here is what I understand:
Case A: I miss a few payments to try to figure out a way to pay or to reach a settlement. My credit score goes down, but does not hit 0 unless I absolutely need to reach Case B.
Case B: Bankruptcy -> zero instantly. No fighting chance.
Is there any effect on the way my credit can rebuild from the two options above?