How to get out of debt!

[Anonymous]

Op, your kids had no business taking out loans.
I was an international student who paid twice what the locals paid for college. I also wasn't allowed to work, but I still did.
My own kid is going to community college and work at the same time. Debt is no joke. Not knowing how to manage it and not having any money for retirement at your age is worse than not having a college degree.
I never made more than $30k, but I'm financially free and semi-retired in my mid 40s. That's the power of knowing how to deal with money. I'm passing the knowledge down to my kids. They know how to buy and sell stocks, how credit works and what a Roth account is.
By the way, those debt consolidation companies are not there to help you.
I work only 15 hours a week making $22 an hour. It's time to slow down nearing late 40s. My manager, who makes $65k+, just asked if I could lend them money to pay their mortgage. It just hit me how bad people are at managing money.
After your bankruptcy, what's going to change? You will be back in the same situation in 5 years flat. Can you go back in time in your head and figure out what changes you should have made way before it got out of hand. I moved in with my sister for example and rented out my condo in 2009. Had I not done something so drastic, I'd be in debt up to my eyeballs. Selling the condo or getting a roommate were the other options.
You got to have a plan after your bankruptcy. I wouldn't file it, but seems like it is preferred here. I'd sell the car, rent a room somewhere near work, and worked 60 hours a week as long as it takes to pay everything off.

[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.

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.

yeah. Stop paying so much extra on the credit cards would be my suggestion. Just pay the minimum payment to save up cash for the bankruptcy lawyer.

[Anonymous]

Anonymous wrote:Op, your kids had no business taking out loans.
I was an international student who paid twice what the locals paid for college. I also wasn't allowed to work, but I still did.
My own kid is going to community college and work at the same time. Debt is no joke. Not knowing how to manage it and not having any money for retirement at your age is worse than not having a college degree.
I never made more than $30k, but I'm financially free and semi-retired in my mid 40s. That's the power of knowing how to deal with money. I'm passing the knowledge down to my kids. They know how to buy and sell stocks, how credit works and what a Roth account is.
By the way, those debt consolidation companies are not there to help you.
I work only 15 hours a week making $22 an hour. It's time to slow down nearing late 40s. My manager, who makes $65k+, just asked if I could lend them money to pay their mortgage. It just hit me how bad people are at managing money.
After your bankruptcy, what's going to change? You will be back in the same situation in 5 years flat. Can you go back in time in your head and figure out what changes you should have made way before it got out of hand. I moved in with my sister for example and rented out my condo in 2009. Had I not done something so drastic, I'd be in debt up to my eyeballs. Selling the condo or getting a roommate were the other options.
You got to have a plan after your bankruptcy. I wouldn't file it, but seems like it is preferred here. I'd sell the car, rent a room somewhere near work, and worked 60 hours a week as long as it takes to pay everything off.

It's great what you did, PP but a lot of students in this country take student loans and pay it off after working hard for decades. This has been happening for decades and situation is much worse now.

[Anonymous]

Anonymous wrote:Op, your kids had no business taking out loans.
I was an international student who paid twice what the locals paid for college. I also wasn't allowed to work, but I still did.
My own kid is going to community college and work at the same time. Debt is no joke. Not knowing how to manage it and not having any money for retirement at your age is worse than not having a college degree.
I never made more than $30k, but I'm financially free and semi-retired in my mid 40s. That's the power of knowing how to deal with money. I'm passing the knowledge down to my kids. They know how to buy and sell stocks, how credit works and what a Roth account is.
By the way, those debt consolidation companies are not there to help you.
I work only 15 hours a week making $22 an hour. It's time to slow down nearing late 40s. My manager, who makes $65k+, just asked if I could lend them money to pay their mortgage. It just hit me how bad people are at managing money.
After your bankruptcy, what's going to change? You will be back in the same situation in 5 years flat. Can you go back in time in your head and figure out what changes you should have made way before it got out of hand. I moved in with my sister for example and rented out my condo in 2009. Had I not done something so drastic, I'd be in debt up to my eyeballs. Selling the condo or getting a roommate were the other options.
You got to have a plan after your bankruptcy. I wouldn't file it, but seems like it is preferred here. I'd sell the car, rent a room somewhere near work, and worked 60 hours a week as long as it takes to pay everything off.

No thanks

[Anonymous]

Op needs to see where the leaks in her budget are. I think she can still cut on some of her expenses and she needs to make a habit of it. Every extra $ earned needs to go in towards debt otherwise it would never come down.

[Anonymous]

Anonymous wrote:Op needs to see where the leaks in her budget are. I think she can still cut on some of her expenses and she needs to make a habit of it. Every extra $ earned needs to go in towards debt otherwise it would never come down.

WHAT leaks? I'm so confused.

OP puts $2,000 to credit card + $700 car loan + $950 rent = $3650 out of $4500 take-home pay. That's about 80% of her take-home pay going to housing and debt(including car).

She's living off of 4500-3650= $850/month for everything: food, gas, tolls and parking, clothing, shoes, copays, OTC meds, entertainment, the very occasional treat or gift.

She doesn't have room for leaks and any she could find would be minimal and not meaningful towards her debt.

[Anonymous]

Anonymous wrote: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.

Dave Ramsey is the worst of the worst. He is an old fart at this point who is mostly disconnected from reality. There are so, so many other financial influencers who are better. One was mentioned a page ago in this thread, but there are others.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Op needs to see where the leaks in her budget are. I think she can still cut on some of her expenses and she needs to make a habit of it. Every extra $ earned needs to go in towards debt otherwise it would never come down.

WHAT leaks? I'm so confused.

OP puts $2,000 to credit card + $700 car loan + $950 rent = $3650 out of $4500 take-home pay. That's about 80% of her take-home pay going to housing and debt(including car).

She's living off of 4500-3650= $850/month for everything: food, gas, tolls and parking, clothing, shoes, copays, OTC meds, entertainment, the very occasional treat or gift.

She doesn't have room for leaks and any she could find would be minimal and not meaningful towards her debt.

That could be true but then OP needs to work more to accelerate paying off this debt. Just by making minimum payments, it would take decades to pay it off.

[Anonymous]

If Op has medical problems then that would cost money and she needs a larger buffer to handle that part and the current budget doesn't work. She needs to sell her car.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Op needs to see where the leaks in her budget are. I think she can still cut on some of her expenses and she needs to make a habit of it. Every extra $ earned needs to go in towards debt otherwise it would never come down.

WHAT leaks? I'm so confused.

OP puts $2,000 to credit card + $700 car loan + $950 rent = $3650 out of $4500 take-home pay. That's about 80% of her take-home pay going to housing and debt(including car).

She's living off of 4500-3650= $850/month for everything: food, gas, tolls and parking, clothing, shoes, copays, OTC meds, entertainment, the very occasional treat or gift.

She doesn't have room for leaks and any she could find would be minimal and not meaningful towards her debt.

That could be true but then OP needs to work more to accelerate paying off this debt. Just by making minimum payments, it would take decades to pay it off.

RIGHT! Now you are getting it.

That's why at her age 42, and with her health issues, and lack of assets like a house, bankruptcy is an appropriate step to take.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Op needs to see where the leaks in her budget are. I think she can still cut on some of her expenses and she needs to make a habit of it. Every extra $ earned needs to go in towards debt otherwise it would never come down.

WHAT leaks? I'm so confused.

OP puts $2,000 to credit card + $700 car loan + $950 rent = $3650 out of $4500 take-home pay. That's about 80% of her take-home pay going to housing and debt(including car).

She's living off of 4500-3650= $850/month for everything: food, gas, tolls and parking, clothing, shoes, copays, OTC meds, entertainment, the very occasional treat or gift.

She doesn't have room for leaks and any she could find would be minimal and not meaningful towards her debt.

That could be true but then OP needs to work more to accelerate paying off this debt. Just by making minimum payments, it would take decades to pay it off.

RIGHT! Now you are getting it.

That's why at her age 42, and with her health issues, and lack of assets like a house, bankruptcy is an appropriate step to take.

But she needs to fix her financial attitude and budget before bankruptcy, or she will end up in the same spot. Most everything is about "how I cannot possibly cut that back or I need this car" Thinking you can afford $700/month car payment when you make $60K is a key part of that issue.

[Anonymous]

I doubt OP is getting it since she thinks affording a $700/mo car is worth it instead of paying off the debt. I wonder how much of her CC debt has come down since last year? If it is not much then she needs to get rid of the car and apartment. Those two would help her pay off the CC debt soon.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I have about $55K of credit card debt and $27K of auto loan. Overall, my minimum monthly payments are about $2700-2800 when my take home per month is about $4500 as a nurse making $60-65K/year. On top of debt, I still have to pay rent, utilities, groceries, gas, etc. I stay very depressed that I would never be able to get out of this. I want to go back to school to get advance nursing degree(paid by hospital) but have to adjust on my hours.

I am 42F and single.

How did you get in this situation?

Was
Wondering this?

[Anonymous]

Op here. Some debt for divorce lawyers, job loss, medical, paying for some stuff at the new apartment after my divorce, helping kids and my mom with their essential expenses.

[Anonymous]

OP, why it was piling up and you didn't care to pay it off or stopped your spending while it was much less? I don't see how you would deal with it going any bigger if some of the same situations come again. I understand emergencies happen but not everything is an emergency.