This is really embarrassing for me to post about, but I need help and I know it. Please be kind.
I am a disabled (wheelchair bound) 23 year old with Bipolar disorder. I used to struggle heavily with impulsive spending and wracking up more credit card debt than I could pay off during depressive and hypomanic episodes. My debt is currently around $5000.
I’m unemployed, I got laid off from my last job a few years ago and haven’t had success in finding a new job (though I’m currently looking again). I receive SSI. I don’t have to pay rent or anything, the only bills I have to pay are my credit cards & medical bills for my cat.
The card that closed was for my cat. My available credit was around $12k with it, but now it’s back down to $5.1k on 2 student credit cards and a PayPal credit account (which isn’t great, I know). I’m not only stressed about not being able to properly provide for his bills anymore, but also about how this will affect my credit score. The account closed at the beginning of March & my credit score went down because of it.
Any advice is greatly appreciated.
One of my cards closed and my credit usage is at 99%. I don’t know what to do.
byu/meiini inpersonalfinance
Posted by meiini
4 Comments
Do some research on preparing debt validation letters along with watching Dave Ramsey videos on negotiating old debt. Then, seek out healthy eating options for your cat (if that’s the issue) along with volunteer vets for low cost care.
I know how challenging finances can be with a disability, I have cerebral palsy myself. To be frank, you need a job. You will probably not be able to make a dent in your debt with just social assistance.
It will be hard. I come home from the office sore and barely able to walk every single day. But a job allowed me to pay of 13k in debt over a few years.
What are the bills for your cat, just regular food and maintenance? If he is advanced in years you may need to consider some hard choices. I did when my geriatric cats care ballooned in cost. To be honest, my only regret was I waited so long.
The reality of having a disability is you have to figure out how to make enough money to pay for your needs, assistance is so abysmally low these days it may as well not exist, and the public at large either does not notice or actively dislikes those who use it.
If your only source of income is SSI, and your only expenses are your credit card bills and your cat, then your only option until you find a job is to spend all of your SSI on paying down your credit card and figuring out ways to spend less on your cat in the meantime
Don’t worry about the score. It will come back when you clear the cards. Credit scores are a very bad measure of financial health anyways.
Your priority right now is going to be working on your budget and get the spending under control. Your bills are the credit card and medical bills, but what about things like groceries, utilities, self care, etc? That’s what your budget needs to include.
You need to see the difference between SSI and what you’re spending on living. If you can get your spending under what you’re earning you can then use that extra money to start making extra payments on the debt and work on clearing it back to zero.
I saw someone else mention Dave Ramsey and I think I’ll second that in your case. Normally his advice isn’t optimal for wealth building, but for people with debt and spending problems he’s the one to look to.
If you rack up debt during depression and hypomanic episodes then you probably shouldn’t have credit cards to begin with and should consider closing them all. Yes, things will be a little more difficult without a great score, but it’s doable and the extra steps you need to secure loans is better than drowning in debt.