How to get out of debt!

[Anonymous]

With everything getting expensive and salaries not increasing, this would be a tall task for OP to manage this debt. Her overall debt is almost 1.6X her annual salary and unsustainable.

bankruptcy is the only option I see.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You are thinking Op would do chapter 7 but I think chapter 13 is going to be much better if she wants to keep her car, retirement etc. chapter 13 is reorganization of debt and you still end up paying some of the debt including CC. Creditors have gone smart about it and it’s not as easy as it looks. Dealing with lawyers and paying them is another concern.

Not to mention, it's debt she incurred and is responsible for...the whole "just declare bankruptcy" advice is insidious and a sign of what a crap nation the US has become. But might as well be like dear leader I guess? Trump is such a shining example of responsibility.

Bankruptcy laws have existed for years.

And imo unless it's medical debt, you should still be responsible for it.

The two people who I know who filed bankruptcy were financially irresponsible, didn't live within their means. They created the mess when they made enough to live comfortably. They ran up credit card debt for wants and then couldn't pay it off. And one wouldn't get a job if he didn't like the job. So yeah. It is not others job to pay for your stupidity. You take on the debt you have to figure out how to pay it off.

I am sure OP's situation is something like this in which she spent more than she makes and a lot on stuff either she wasn't smart about or overpaid for no reason. The really bad is the debt spiral when CC companies continue to charge you crazy amount on interests and people never get out of it.

The CC companies "continue to charge you crazy amount on interests" because that is how it works. If you don't understand that, you shouldn't be using a CC.
I am over 50 and have NEVER paid interest on a CC, ever. Why? Because I understand how things work and I don't charge something if I cannot pay it off that month.
I also understand wants vs needs, and certainly would never run up debt for "wants" (which is what most people do).

But the fact CC companies charge high interest is a well known fact, and something you should consider when using them. It's not a surprise.

[Anonymous]

PP, too late in case of OP and I understand how you did it but she is knee deep in this mess and people are giving her suggestions on how to deal with it. Her struggle is real since she also created this mess but refinancing auto and CCs are the only way to get a breather on this otherwise very soon the balance would be higher than what it is.

[Anonymous]

Op here. I can't ask my daughters to help me out with my debt since they already have high student loan debt payments and other one is still in school.

I have looked into local community help but there is not much available in my area. I am working with a few debt management companies to check which one I would chose. Most of them are asking for $150-250/mo to manage the debt and do negotiations on my behalf. I was able to get car refinance and that is saving me about $150/mo which I am focusing towards debt. Health is good but this mountain of debt making me feel hopeless and I get very depressed thinking about it. Even therapy costs about $30 with my co-pay so I am very selective with it.

[Anonymous]

Anonymous wrote:Op here. I can't ask my daughters to help me out with my debt since they already have high student loan debt payments and other one is still in school.

I have looked into local community help but there is not much available in my area. I am working with a few debt management companies to check which one I would chose. Most of them are asking for $150-250/mo to manage the debt and do negotiations on my behalf. I was able to get car refinance and that is saving me about $150/mo which I am focusing towards debt. Health is good but this mountain of debt making me feel hopeless and I get very depressed thinking about it. Even therapy costs about $30 with my co-pay so I am very selective with it.

So what did they offer you in return for $150-200 in monthly fees? How soon do they say you can pay off your debt? Also, this doesn’t sound like a non profit level of fees. Did you try contacting a non profit debt management like many here suggested to you? Did you consult a bankruptcy attorney? You got a lot of good advice here that you should follow

[Anonymous]

Op here. Yes, I am talking to a few debt management companies and non-profit ones are still looking into my finances and see how they could help. The expensive ones are not promising anything and telling me it could take 8-10 years to pay all of this down.

Didn't contact bankruptcy attorney yet since their hourly fees starts from $350 so I am holding off to that one for now.

[Anonymous]

Anonymous wrote:Op here. Yes, I am talking to a few debt management companies and non-profit ones are still looking into my finances and see how they could help. The expensive ones are not promising anything and telling me it could take 8-10 years to pay all of this down.

Didn't contact bankruptcy attorney yet since their hourly fees starts from $350 so I am holding off to that one for now.

You know the info you provided on your situation just doesn’t quite add up for me. You said your credit cards interest rate is between 10 and 20 percent. You are making $2000 payments per month on your credit cards. If you don’t add any new charges to them you should be able to pay them off in 3 years even at 20 percent rate. You must be adding a lot of new charges if they tell you it will take you 8-10 years to pay it off?

[Anonymous]

OP, this is extreme, but there's a guy on youtube who helps people figure out their budgets to address their debt. He's tough, but fair.

He has tools you can use for free. He also has people on his youtube show and that's sometimes eye-opening. I'm not saying you should go on his show, but immersing yourself in stories of people attacking their debt may be inspiring.

https://calebhammer.com/

[Anonymous]

Op here. I am following him on youtube and reels and taking advice from his suggestions too. My only issue is that I don't have a lot of expenses to cut. I am already bare bone on everything and don't have much room to cut.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Op here. Yes, I am talking to a few debt management companies and non-profit ones are still looking into my finances and see how they could help. The expensive ones are not promising anything and telling me it could take 8-10 years to pay all of this down.

Didn't contact bankruptcy attorney yet since their hourly fees starts from $350 so I am holding off to that one for now.

You know the info you provided on your situation just doesn’t quite add up for me. You said your credit cards interest rate is between 10 and 20 percent. You are making $2000 payments per month on your credit cards. If you don’t add any new charges to them you should be able to pay them off in 3 years even at 20 percent rate. You must be adding a lot of new charges if they tell you it will take you 8-10 years to pay it off?

PP, it is clear to me that she can't really afford to be putting $2000 a month towards her debt for three years. Her true expenses are likely not accounted for in her budget. The credit companies she's contacted surely have picked a more reasonable number for her to be putting down, which is why it would take more years.

OP - overwhelming numbers of people on the reddit bankruptcy forum are saying that their only regret in filing Chapter 7 bankruptcy was not doing it sooner. If you are a smart person, do spend some time reading it. Maybe post about your own situation and ask for their take on it. Before hiring anyone, do what you can to learn about it.

I think you are a great candidate for it. The credit card companies made a lot of money off of you and people like you. Your debt is insurmountable, to YOU, but it isn't very much money at all, to them. And read the forums - two years after chapter 7 bankruptcy, people's credit score returns to the 700s and is way better than it was all those years they were dealing with the debt. Don't let people scare you into thinking it is something horrible.

Read up on it, and try to find someone reputable to advise you.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You are thinking Op would do chapter 7 but I think chapter 13 is going to be much better if she wants to keep her car, retirement etc. chapter 13 is reorganization of debt and you still end up paying some of the debt including CC. Creditors have gone smart about it and it’s not as easy as it looks. Dealing with lawyers and paying them is another concern.

Not to mention, it's debt she incurred and is responsible for...the whole "just declare bankruptcy" advice is insidious and a sign of what a crap nation the US has become. But might as well be like dear leader I guess? Trump is such a shining example of responsibility.

Bankruptcy laws have existed for years.

And imo unless it's medical debt, you should still be responsible for it.

The two people who I know who filed bankruptcy were financially irresponsible, didn't live within their means. They created the mess when they made enough to live comfortably. They ran up credit card debt for wants and then couldn't pay it off. And one wouldn't get a job if he didn't like the job. So yeah. It is not others job to pay for your stupidity. You take on the debt you have to figure out how to pay it off.

I am sure OP's situation is something like this in which she spent more than she makes and a lot on stuff either she wasn't smart about or overpaid for no reason. The really bad is the debt spiral when CC companies continue to charge you crazy amount on interests and people never get out of it.

OP told us how this debt happened; it's no mystery. She was married and presumably they had two incomes, then she got divorced. At some point after divorce she was living with a fiance who helped with expenses, but he's gone too. So she's been spending like she was in a couple, instead of supporting herself, and she overspent.

it happens. But now it is getting harder and harder to get out of this financial hole she's dug herself into.

If she earned a lot more money I'd say tough noogies, dig your self out of the hole. But she doesn't. She earns very little relative to her debt, and she isn't 25 either.

That's why I say bankruptcy is the best answer.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You are thinking Op would do chapter 7 but I think chapter 13 is going to be much better if she wants to keep her car, retirement etc. chapter 13 is reorganization of debt and you still end up paying some of the debt including CC. Creditors have gone smart about it and it’s not as easy as it looks. Dealing with lawyers and paying them is another concern.

Not to mention, it's debt she incurred and is responsible for...the whole "just declare bankruptcy" advice is insidious and a sign of what a crap nation the US has become. But might as well be like dear leader I guess? Trump is such a shining example of responsibility.

Bankruptcy laws have existed for years.

And imo unless it's medical debt, you should still be responsible for it.

The two people who I know who filed bankruptcy were financially irresponsible, didn't live within their means. They created the mess when they made enough to live comfortably. They ran up credit card debt for wants and then couldn't pay it off. And one wouldn't get a job if he didn't like the job. So yeah. It is not others job to pay for your stupidity. You take on the debt you have to figure out how to pay it off.

I am sure OP's situation is something like this in which she spent more than she makes and a lot on stuff either she wasn't smart about or overpaid for no reason. The really bad is the debt spiral when CC companies continue to charge you crazy amount on interests and people never get out of it.

OP told us how this debt happened; it's no mystery. She was married and presumably they had two incomes, then she got divorced. At some point after divorce she was living with a fiance who helped with expenses, but he's gone too. So she's been spending like she was in a couple, instead of supporting herself, and she overspent.

it happens. But now it is getting harder and harder to get out of this financial hole she's dug herself into.

If she earned a lot more money I'd say tough noogies, dig your self out of the hole. But she doesn't. She earns very little relative to her debt, and she isn't 25 either.

That's why I say bankruptcy is the best answer.

This reminds me of something. I think OPs name is America: she likes to spend well beyond her means and eventually runs up debt she can’t sustain with the credit card company named China.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You are thinking Op would do chapter 7 but I think chapter 13 is going to be much better if she wants to keep her car, retirement etc. chapter 13 is reorganization of debt and you still end up paying some of the debt including CC. Creditors have gone smart about it and it’s not as easy as it looks. Dealing with lawyers and paying them is another concern.

Not to mention, it's debt she incurred and is responsible for...the whole "just declare bankruptcy" advice is insidious and a sign of what a crap nation the US has become. But might as well be like dear leader I guess? Trump is such a shining example of responsibility.

Bankruptcy laws have existed for years.

And imo unless it's medical debt, you should still be responsible for it.

The two people who I know who filed bankruptcy were financially irresponsible, didn't live within their means. They created the mess when they made enough to live comfortably. They ran up credit card debt for wants and then couldn't pay it off. And one wouldn't get a job if he didn't like the job. So yeah. It is not others job to pay for your stupidity. You take on the debt you have to figure out how to pay it off.

I am sure OP's situation is something like this in which she spent more than she makes and a lot on stuff either she wasn't smart about or overpaid for no reason. The really bad is the debt spiral when CC companies continue to charge you crazy amount on interests and people never get out of it.

OP told us how this debt happened; it's no mystery. She was married and presumably they had two incomes, then she got divorced. At some point after divorce she was living with a fiance who helped with expenses, but he's gone too. So she's been spending like she was in a couple, instead of supporting herself, and she overspent.

it happens. But now it is getting harder and harder to get out of this financial hole she's dug herself into.

If she earned a lot more money I'd say tough noogies, dig your self out of the hole. But she doesn't. She earns very little relative to her debt, and she isn't 25 either.

That's why I say bankruptcy is the best answer.

I agree bankruptcy is best for her but how to handle the initial payment to lawyers as they charge a good amount of money upfront to handle the bankruptcy. I don't think OP has any money to spare and bankruptcy can't be handled on her own.

[Anonymous]

You need to call Dave Ramsey. But I think he would tell you to get rid of the car. It’s way too expensive for you and I’m not sure why you have it. You say you need to visit family but that’s not a good excuse when you’re drowning in debt. Get them to drive you, use public transit, or both. Your car loan is more than my car is worth and I have kids to drive around and a much better financial situation.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You are thinking Op would do chapter 7 but I think chapter 13 is going to be much better if she wants to keep her car, retirement etc. chapter 13 is reorganization of debt and you still end up paying some of the debt including CC. Creditors have gone smart about it and it’s not as easy as it looks. Dealing with lawyers and paying them is another concern.

Not to mention, it's debt she incurred and is responsible for...the whole "just declare bankruptcy" advice is insidious and a sign of what a crap nation the US has become. But might as well be like dear leader I guess? Trump is such a shining example of responsibility.

Bankruptcy laws have existed for years.

And imo unless it's medical debt, you should still be responsible for it.

The two people who I know who filed bankruptcy were financially irresponsible, didn't live within their means. They created the mess when they made enough to live comfortably. They ran up credit card debt for wants and then couldn't pay it off. And one wouldn't get a job if he didn't like the job. So yeah. It is not others job to pay for your stupidity. You take on the debt you have to figure out how to pay it off.

I am sure OP's situation is something like this in which she spent more than she makes and a lot on stuff either she wasn't smart about or overpaid for no reason. The really bad is the debt spiral when CC companies continue to charge you crazy amount on interests and people never get out of it.

OP told us how this debt happened; it's no mystery. She was married and presumably they had two incomes, then she got divorced. At some point after divorce she was living with a fiance who helped with expenses, but he's gone too. So she's been spending like she was in a couple, instead of supporting herself, and she overspent.

it happens. But now it is getting harder and harder to get out of this financial hole she's dug herself into.

If she earned a lot more money I'd say tough noogies, dig your self out of the hole. But she doesn't. She earns very little relative to her debt, and she isn't 25 either.

That's why I say bankruptcy is the best answer.

This reminds me of something. I think OPs name is America: she likes to spend well beyond her means and eventually runs up debt she can’t sustain with the credit card company named China.

Unhelpful comment.