This is my first post here and I'm sorry in advance if it seems like I'm making excuses or rambling, i just want to tell the full story and idk how else to do it.
– Graduated in 2024 with more debt than I should've since my mom told me to accept all of the loans offered to me even though I didn't need a lot of them ($33k) and I blindly listened bc I was 18.
– Moved out at 22, the place caught on fire leaving me displaced. Ended up maxing out my credit card ($2,000) to be able to feed myself and provide myself transportation
– Got a full-time job paying $20 per hour ($1,400 bi-weekly) and got kicked off my mom's insurance early for making too much. I was paying around $100 last year but it jumped up to $233 this year??
– don't have the money to pay my premium on time so I'm wracking up debt there too ($500+)
– had to move out of my cheaper living arrangement (roommates broke the lease and got us kicked out early) and opt for living in an overpriced studio bc that's all that would take me ($1,100)
– I've been trying to get a new job that pays better but have gotten hundreds of rejections. I tried to go back to school for a master's in a different discipline (paying out of pocket) to have a better chance at a new job but was met with rental issues that made me have to spend the last installment of my tuition ($1,200). Now I'm in debt to the school too.
I think that's everything. I literally have no savings now because I've been trying to keep up with all of these payments and life things keep happening in the midst of it all. I just had to spend my last $600 on replacing my car's cooling system so now I have nothing. My family isn't great with money either so asking them for help is out of the question. I feel hopeless and don't know what to do. I know I'm to blame for all of this, but I'm just wondering if anyone has advice on how I can fix it. I've reached out to a financial advisor but don't know how worth it it'll be.
Just turned 26 and feel like I'm drowning in debt
byu/m0o0onpie inpersonalfinance
Posted by m0o0onpie
9 Comments
Read the following.
[https://www.reddit.com/r/personalfinance/wiki/commontopics](https://www.reddit.com/r/personalfinance/wiki/commontopics)
Pick up OT or a 2nd job. You need to me working more hours.
Cut expenses. Consider a roommate. Increase income. Consider a second job.
Doesn’t matter now but I’m pretty sure you can stay on your parents insurance regardless of how much you make. I was making low six figures a couple years after I graduated and stayed on till 26
Don’t beat yourself up for being a bear stuck in a bear trap.
You being in your situation just means the system still works as intended.
My actual advice is to take things slow. Make a plan. Live below your means. Don’t chase the Jones’. Only buy what YOU want.
You’ll be fine in a few years.
For the most part you didnt go crazy. Rent, gotta sleep somewhere. Car, gotta get places. Food, gotta eat. School, gotta progress in life.
You went to school but you’re only making $20 an hour? You should prioritize finding a better job asap. Live on rice and beans till then.
2nd job, like everyone is saying. You need to stop the bleeding.
That may involve putting school on the back burner for now, reassess things after you’re almost done with paying back your debt.
How often you go to doctor or on some scripts and medically tied to this insurance? Could go for a higher deductible plan but cheaper monthly.
Cooling system like your AC repaired or your radiator replaced?
finding the right trusted independent mechanic specialized on your make (no dealerships unless under warranty or recall) and using your brain before following anyone’s advice even a trusted mechanic. Second and third professional opinions and quotes always where time and money allow cars/medicine/finance.
everyone in front of you is selling you something even the Drs they are salesman first and healers second.
You’re doing ok, just stay grounded and save and invest wisely in yourself and your future. Find good people and groups to associate with and it can help a great deal to have good influences.
Your story is very similar to mine when I was your age. Stay positive and keep trying – you can absolutely dig yourself out and thrive.
I saw a nonprofit (important – beware of scams) credit counselor to help me come up with a plan to no longer be bogged down in debt. It took patience and comittment but it worked. You can explore options here: [https://www.nfcc.org/](https://www.nfcc.org/)
Like you, I also got a masters degree to expand my career options. I had to move to a bigger city with more job opportunities before I saw a big income bump, but then my career really took off. See it through, take any internships you can, use informational interviews to network, and be open to moving to take advantage of new opportunities.
Finally, see if there’s a way to add a fun-ish part-time gig to boost your income without completely burning yourself out. I had a friend that paid off her grad school debt then bought a house by working Fri/Sat nights at a big music venue. You can also look for opportunities like paid focus groups, promotional gigs, etc. to bring in a little extra income so you can pay off your debt more quickly.
Good luck – keep us posted on your progress.