How to get out of debt!

[Anonymous]

Way to go OP! You're headed in the right direction and making progress. You will succeed!

I'm in the camp of OP needs to increase her income, and going back to school to get a better job is a solid way to do that. So, while in school, I would focus on school. Sure a roommate would help significantly with her budget now, but that's rather short term focused. The wrong roommate could really mess up OP's schooling and long term plans. So, if the right roommate came along, sure, that would work, but I'd encourage OP to focus on doing well in school and at work. (and obviously living on a bare bones budget, which it sounds like she is).

Again, congrats to OP. You can do this!

[Anonymous]

OP did you winterize your single pane windows?

Here's a cheap kit: https://www.amazon.com/Insulation-160X330cm-Plastic-Winterizing-Ventilation/dp/B0DFPQWRZH?th=1

[Anonymous]

Anonymous wrote:This is insanity.
1. You need a cheaper car. Immediately.
2. You need to work more. Period.
3. You need to pay off debt before going for more school Extra time should be spent working to pay down debt.

From someone who paid off 100k in debt in my 20s (all but 20k was high interest private student loans because my parents refused to contribute to college and I could not get enough financial aid due to their salary--I finished college in 1999--my debt burden was unheard of then). I worked three jobs. All my debt was paid off at 31. I lived on beans and rice mostly for years. I did not spend money. Everything went to debt repayment, retirement savings.

This is an acceptable approach for someone in their 20s - although mostly because at that time, the $80,000 student loan debt was not dischargeable in bankruptcy! Presumably you were healthy and able to work 3 jobs with few side effects.

It's not a great approach for someone age 43 who is physically not in good health and whose job skills require physical activity (nursing)

[Anonymous]

OP, in order for you to make progress on your debt, instead of paying $2000 in 8 months, you need to pay $2000 EVERY month.

Are you able to do that?

[Anonymous]

Anonymous wrote:OP, I went back and read all the comments on this thread, because I remember it very well.
I was the posted pushing hard for you to consider declaring bankruptcy to clear your debts and start fresh.

I was arguing with one poster in particular, who felt it was entirely possible for you to pay off your $55,000 in CC debt in just three years, if you worked hard and spent 80% of your take-home pay on rent+CC payment+Car loan.
S/he said in just three short years, you would have all your debts cleared?

I thought it was highly unlikely you could sustain that level of repayment on a $60,000 income. Was I correct?

Reading your update - you say you have managed to pay off $2,000 of your debt over the last 8 months? So do you now owe $53,000 instead of $55,000?

So perhaps in a full calendar year you might be able to pay off another $1,000 of the debt. That would bringyou to $52,000 owed instead of $55,000?

I think I was correct then, that at $3,000 a year you are not going to be paying down this debt in just 3 years.

I also was concerned that you needed disability insurance and would be in big trouble if you got sick and weren't able to bring in a paycheck for a period of time. And I see from your post, that's exactly what happened.

I strongly urge you to reread the advice from earlier this year and consider bankruptcy filing. You need to start protecting your financial future moving forward and thinking about retirement, pension, social security, and an emergency savings account.

You are in a really vulnerable situation depending on your income to survive, and you have bad health and a physically tiring job.

This is an excellent advice but sounds like OP is too stubborn or scared to try any of it. Bankruptcy could be social stigma for her and could take a big hit on her self-esteem. I say screw self-esteem right now and focus on this to get out of this debt. There is not much left for her to pay extra and the PP is right, it would take her 15+ years to pay this debt.

[Anonymous]

Anonymous wrote:OP, in order for you to make progress on your debt, instead of paying $2000 in 8 months, you need to pay $2000 EVERY month.

Are you able to do that?

No, she doesn't make that much. After making all the minimum payments, she doesn't have anything left. She has an income problem along with that she is not cutting any expenses.

[Anonymous]

Anonymous wrote:It’s a bad advice to recommend live it up a little. Op needs to get a second job and try to pay down as much as possible. Not sure how she got there but that’s a lot of CC debt.

+1
The second job idea is a good one. OP, you need to also save for retirement once you get the debt paid off.

[Anonymous]

Anonymous wrote:Can you moonlight?

+1

[Anonymous]

Before you start school please know that it's have not hv

[Anonymous]

Anonymous wrote:

Anonymous wrote:It’s a bad advice to recommend live it up a little. Op needs to get a second job and try to pay down as much as possible. Not sure how she got there but that’s a lot of CC debt.

+1
The second job idea is a good one. OP, you need to also save for retirement once you get the debt paid off.

Op is a nurse so why would she do a second job. She can just extra shifts at her work. It is very easy.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Op here. I am an LPN and work as a nurse in the surgery center. Extra hours are available but it also gets very tiring.

I got some of this debt after my divorce and part of it is me spending a little too much but I hv learned my lesson. Car payment is about $700/mo and I hv some medical issues too that takes away some of the cash. Can’t get rid of car since I do hv to travel to see my family.

$700 a month car payment on $65k a year? You need to sell that thing and get a $20k car.

I'm not PP, but my car payment is $700 a month for a $20k car. 36 month loan, but still.

[Anonymous]

Holy Moly! that's a lot of credit card debt. I read through the thread but really didn't see how she accumulated it. Most importantly, I hope she don't go down the same path again if she has a spending problem.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Op here. I am an LPN and work as a nurse in the surgery center. Extra hours are available but it also gets very tiring.

I got some of this debt after my divorce and part of it is me spending a little too much but I hv learned my lesson. Car payment is about $700/mo and I hv some medical issues too that takes away some of the cash. Can’t get rid of car since I do hv to travel to see my family.

$700 a month car payment on $65k a year? You need to sell that thing and get a $20k car.

I'm not PP, but my car payment is $700 a month for a $20k car. 36 month loan, but still.

what is the interest rate?

[Anonymous]

Anonymous wrote:Holy Moly! that's a lot of credit card debt. I read through the thread but really didn't see how she accumulated it. Most importantly, I hope she don't go down the same path again if she has a spending problem.

She said earlier the CC debt was a combination of lawyer bills from divorce; money for setting up her new apartment with furniture and stuff after the divorce, some just covering during a period of job loss, and helping her ill mom and her kids when they were in college.

For a while she was living with her fiancé, and I presume was able to handle the payments better at that time, but then the fiancee split and either she had to get her own place, or she was on her own in her apartment and not splitting expenses - that's when things got really dicey.

If OP has lived the past 8 months without adding to her debt, and in fact paying down the debt, I think that's a really good sign that this debt was a temporary thing where you just misjudged your finances, perhaps were dealing with a broken heart and stress. OP, I think you are a good candidate for a Chapter 7 bankruptcy. There's no shame in it and plenty of people file for bankruptcy and do just fine after.

[Anonymous]

Anonymous wrote:

Anonymous wrote:This is insanity.
1. You need a cheaper car. Immediately.
2. You need to work more. Period.
3. You need to pay off debt before going for more school Extra time should be spent working to pay down debt.

From someone who paid off 100k in debt in my 20s (all but 20k was high interest private student loans because my parents refused to contribute to college and I could not get enough financial aid due to their salary--I finished college in 1999--my debt burden was unheard of then). I worked three jobs. All my debt was paid off at 31. I lived on beans and rice mostly for years. I did not spend money. Everything went to debt repayment, retirement savings.

This is an acceptable approach for someone in their 20s - although mostly because at that time, the $80,000 student loan debt was not dischargeable in bankruptcy! Presumably you were healthy and able to work 3 jobs with few side effects.

It's not a great approach for someone age 43 who is physically not in good health and whose job skills require physical activity (nursing)

Nonsense. She can get a less demanding second job. Her kids are grown.

I am now 48. I have always worked two jobs. I have 8 years left until both kids are in college. I am a 401k millionaire because I work two jobs. I am the same poster who paid off 100k by 31. It took me a decade because of low nonprofit pay hence the 3 jobs. Two since having kids.