So as the title says, I’m essentially ruined financially. Little background to this, my ex and I broke up about a month ago after we got a place together and they just upped and left leaving me responsible for the entire rent (extra $1000 a month in expenses not counting food and other things we used to split.). I cannot afford to break the lease ($4000 approx) and my credit score as of today is a 410 so I can’t even get approved for another place even if I could afford it so that’s off the table.
I have approximately $30,000 in credit card debt with $13,000 of it in collections with a pending suit against me. My car insurance premium has tripled in the last year so I cannot afford car insurance anymore ($450/mo). I can’t sell my car because I’m $6000 upside down in it ($445/mo). I’m past due on every account I have open including $45,000 in federal student loans that are going to default at the end of this month. My bare minimum cost of living without including food or personal hygiene products which I cannot afford is $3,720 a month approximately. I only make $1,400 on the nose every 2 weeks. I just got a second job but it is literally going to have me at paycheck to paycheck and unable to get caught up on bills. I am also going back to school in a week to try to get higher income and I have no idea how I’m supposed to manage my time but that’s besides the point.
I have 0 idea what to do. I’m at the point where I quit caring about my credit cards because I have to make a choice between being homeless or paying them off. Yes I made a lot of really stupid choices when I was very young and 6 years later I’m still paying for them in the worst way. I just simply cannot afford to even live anymore. I haven’t eaten in 3 days and I don’t know when the next time I’m going to be able to will be considering I don’t get paid until the 13th.
Quite honestly I’m at such a point of depression and stress with all of this that I do not see a way out nor a point to busting my ass 80 hours a week to live paycheck to paycheck for 20+ years. I have no assets with positive equity to sell. I literally have nothing and no one. Any advice or guidance is greatly appreciated and thank you for taking the time to read.
I am in such a deep hole and my life is falling apart.
byu/beyondcookedbro inpersonalfinance
Posted by beyondcookedbro
17 Comments
Can you find a sublease or roommate to help with bills?
You probably realize this now but the rental agreement you signed was out of your price range. The consequences of that decision will be painful however if you learn from it, you may find it’s an important part of your learning journey. At that income level, I’d be spending 800 or less on rent. If that’s not available in your area, you may not be able to live there.
How many rooms, can you get a roommate?
I would stop paying anything you don’t need to live day to day (so keep paying rent, car, food, skip the debt payments) save up enough money for a bankruptcy attorney and go to one ASAP. You have exactly the kind of situation bankruptcy is meant for.
You need to outline your actual costs. Have you talked to your landlord/lady? Have you ever called a credit card collections group to try and negotiate down any of your debts? Is your place big enough to have a roommate? Right now you can go to food banks, and take it day at a time managing your panic. Work both jobs and pay what you can on the debts with the highest interest rates. Stop kicking yourself for past mistakes. Start being honest and admit where you are today. You are working your way out of a hold. You will make it one day at a time by being honest with yourself. Find a food bank. Eat, exercise, work, repeat. Find a library and educate yourself on wise spending habits. You can do this.
>My bare minimum cost of living without including food or personal hygiene products which I cannot afford is $3,720
What does that consist of?
INFO: what’s your first degree in? Is your ex’s name on the lease?
If your ex is on the lease, they are partially responsible for the rent too. If they won’t pay, you could sue them in small claims court for the money you paid on their behalf.
You can’t afford the apartment and need to find a cheaper place to live.
– RENT: Tell your landlord. They may have temporary payment plan option, or prefer receiving a partial payment over the eviction process. Or finding a replacement tenant to take over your lease.
– FOOD: apply for SNAP, and see if food pantry has free food in the meantime
– STUDENT LOANS: Get on Income-Driven Repayment (IDR) plan immediately, so your payments may reduce to $0
– CAR INSURANCE: your premiums are high. Shop around and get basic liability at lowest price
– BILLS: Focus only on keeping your housing, food, and transportation (needed for work and school). credit cards and collection bills is last priority
For food, find a local food pantry. They should be able to help no questions asked.
Do not go back to school right now you have defaulting student loans and you need the extra time to work more going back to school right at this moment is a terrible idea also they are starting to deduct money from your paychecks for some student loans as well starting soon
Chapter 7. Get everything written off except federal student loans.
Get rid of the car and insurance payments, sublease or downsize. 2-4 years of making lifestyle smaller and prioritizing the right things and you will be fine.
It will feel like it sucks but life is teaching you many lessons here and it is up to you to learn and grow and be better because of them
Also, look up your area food banks and go “shopping” at all of them as much as you can. There are ways to get food for little to no money at all. Oftentimes food banks can have some really great stuff for you as well.
My wife works at one that literally has given away entire whole frozen salmon. You can eat well even if you can’t afford it.
Ex moving out might have been nail on the coffin but you’ve been laying in that coffin for years.
Best case scenario you find a tiny room to rent near your work so you can lose the car and insurance payment. Let collections do its thing, go bankrupt, rely on cash/debit for a few years until you can learn better habits.
Worst case scenario you live in your car, find a place to shower (cheap gym membership), find a safe place to park overnight near your work to save costs. Rely on microwaveable meals at work, like heat up your dinner right before you leave and eat in the car.
Do whatever it takes to survive.
There is no way you are going back to school. First you don’t have the money for tuition, second no one would give you a loan given your current defaults. So If that is bullshit, then the rest of this post probably is as well.
Call 2-1-1 and talk to a social worker. They can help you figure out what services are available for people like you in your area.
One thing that often paralizes people in this kind situation is pride. Don’t be the person that is too proud to go to a food bank or whatever. It’s literally what they are there for.
Go into bankruptcy, find a cheaper place to live with family, and never mix finances with others!!! Also, just keep working even if it’s seven days a week. Get some rest, take a walk, and know this: we have all been there in some form or another!!!! Stay safe and stay well mentally and physically!!! Pray! Only Jesus!!!
Pretty good time to consider bankruptcy, consult a lawyer.
Praying for you and your situation. I really hope things get much better for you
You need to look into renting a place closer to your work, and cheaper. Then you need to get rid of your car and bike or bus to work. You see all those people taking the bus to work everyday? They are in a better financial situation than you are. You can’t afford your lifestyle.