Hello all,
I have been lurking on this page for a couple weeks now. I am currently working on cleaning up my finances. I made a lot of mistakes in my early 20s and as I prepare to turn 30, I really really want to create a path to stability. My biggest concern right now is a judgement against me from capital one. I owe them about $8k. They have informed me of intention to begin wage garnishment proceedings. I do have a lawyer. That would wreck me. I would be evicted. The only safety net there is my parents won’t let me be homeless (thank god I am so incredibly lucky and grateful) so if that did happen, it would at least get paid off semi quickly and I would still have a roof over my head… just an eviction on my record and absolutely no pride left 😅
I really want to avoid bankruptcy. I am enrolled with Green Path to help me start budgeting. I set up a payment plan and negotiated down one credit card already and applied to consolidate my federal student loans.
I am here for any and all tips to build my financial wellness.
Some specs:
I make about 53k, owe about 53k in student federal and private loans, ~10k in medical, cc debt including $8k for Capital One.
My take home is about $1500 biweekly
My rent is about $1250 🙃
I am still working on other parts of my budget but have canceled about $50 in subscriptions this month.
Beyond my debt and controlling that I REALLY want to find a way to start to save. I have no savings. I hate that I have worked since I graduated college and have nothing to show for it.
Turning the page on my finances
byu/jkid821 inpersonalfinance
Posted by jkid821
2 Comments
Move in with your family to begin paying off your debts.
While you want to get ahead financially, you need to start by getting out from behind. Your rent is nearly half your take home. That’s way too much without debt and proportionally you have a lot of debt as well.
I don’t have a magic bullet. But you can stop paying the medical. That’s the one that won’t drastically affect your credit. Do you know what the garnishment would be?
You don’t want to be bankrupt. My best advice would be to move back with your folks who are nice enough to let you not be homeless. Put every dime you make to paying off your debt and get in a position to be able to make better decisions because the ones prior have put you into this one.