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I would not get a bankruptcy lawyer. You can fix this. Cut every expenditure possible. Eliminate cell phone (buy a cheap prepaid at Walmart), internet (use the local library), Pest control (do it yourself) Cut your electric bill (focus and look at every item you have that uses electric and use less) Turn down the heat and turn up the AC. All lights off at 9:00 PM. Focus on saving. Sell the truck and get a really cheap car, sell the house and rent a cheap place, CUT UP YOUR CREDIT CARDS, they are your enemy. Look at every debt you have and pay off the highest interest rate as fast as possible, than move to the next one until they are gone. Get a second job with 100% of all income used to pay down debt. Figure you will live like a monk for a couple years, but after that time you will have developed the habits that will sustain you for the rest of your life.
Get to a Dave Ramsey class, book, or video as fast as possible. His advice helps.
My thoughts exactly. Cut out the items that are not needed like Cable, and start working part time. It is not fun working 7 days a week but I would imagine it is not fun being in over your head either. If your salary<expenses than getting additional income is the only thing that makes sense so that your salary>expenses.
My advice for people looking for side gigs is become a server in a restaurant- usually flexible on hours so it doesn't have to conflict with your full time job. Plus quick cash up front (maybe have to wait for the Credit Card tips to settle but still...). Start paying more than just the minimum payments so you can eat away at the principal.
Also- do you think you could rent your $1000+ room out to someone while you maybe crash on the couch for awhile? If you could do this from Sept- Dec it would free up $4,000. If the room is worth more maybe ask for $1200 per month and make a profit off of it if you can. I know that's easier said than done. I wouldn't want to sleep on the couch at my own place but bankruptcy should not be the answer. IMO.
Every time I pay off my credit cards I slowly start to use them again and before I know it I've put too much on them. I don't want to keep living my life this way. Please help.
Oh- also. My last piece of advice would be to either cut up your credit cards or place them in a locked safe in your room so you do not use them. Don't leave them in your wallet since that is too easily accessible. Out of sight- out of mind.
Just so you know: the OP posted in the Cinci forum initially. The economy in Ohio is sliding into the drain quickly and 2nd jobs are hard to get. Homes are not selling well, and right before I left, I was seeing lots of boats and cars with FOR SALE signs sitting in yards along US 23 and other large roads *in the summer*.
That's why I didn't mind liquidating and moving. The OP may face a similar decision before long.
I should have came to this forum first, but earlier today I took out a 401k loan for $23,500. I took out this loan because I am running low on funds, and I make less money per month than the expenses I have. I know that this is only going to fix things for a while, and once this money is gone I am really going to be hurting. I will give you some additional details to facilitate your ability to give me the best advice possible. That is what I need right now. Some guidance. Some direction from someone that has been in similar trouble before, or just someone that is great with helping people figure out their debt situations.
I have a truck that I owe $14000 on ($229 per month). I have 10 credit cards that I owe a combined total of $25000 on (approximately $500 month). I have a debt consolidation loan that I owe $30,000 on ($750 per month). I have an existing 401k loan that I owe $4800 on (Bi-weekly payments of $87). I also have a house payment of $1011 a month. These are the debts that can be paid off. I also have cable ($85 per month), cell phone ($165 per month), internet ($74.99 per month), pest control ($45 per month), security system (49.99 per month), electricity ($200 per month average), water ($25 per month), garbage ($25 per month) bills that total $670 per month. That's approximately $3330 a month in bills and I only bring home approximately $2700 per month and I am about to start bringing home about $400 less per month when the new 401k loan payments start coming out of my check for the $23,500 401k loan I just initiated.
I have good credit. I have scores of 700-730 through all three credit bureaus. So I might be able to move some money around through loans or balance transfers.
Please I'm begging you to help me resolve this situation. I don't expect to be able to do anything about this quickly. I just need some guidance. I need to become more disciplined. Every time I pay off my credit cards I slowly start to use them again and before I know it I've put too much on them. I don't want to keep living my life this way. Please help.
Are you single? How many bedrooms does your house have? You can take boarders in the other bedrooms, this goes a long way.
How much is the truck worth currently? Could you go down to something cheaper?
How much do you spend on food a month? Often times major cuts can be made here as well.
And whatever you do, DON'T borrow ANY more money!!!!
You have a good credit score? How is that possible?
Your monthly expenses FAR exceed your income. I can't believe that the best advice some had for you was to cut things like cable and cell phone. Sell the house, use the truck to move your stuff somewhere affordable, then sell the truck.
i worry about money every darn day of my life, but you make me feel a whole lot better about myself and my choices.
It is possible because he has been juggling the debt. Borrowing more in order to make all of the minimum payments, keeping all of the balls in the air.
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