I’m 31 and live alone. When I first moved into my current apartment 4 years ago, I had a job that paid $28 an hour, unlimited overtime, and little debt. A year ago I got a wfh job that pays $22 an hour and overtime is few and far between. I’ve got myself into debt trying to survive. I switched jobs due to being on a weekly rotating work schedule from graves to mornings and it took a major impact on my mental health. It is the only schedule offered by that employer and I was going insane, literally. I was dumb and didn’t save any of what I was earning from the previous employer and just took the leap of faith.
I have about $7000 in debt right now between a loan and some credit cards. One of the payments is $155 and the four credit card payments are small all under about $30 a month. I owe $7500 on my car ($225). My rent is $1300, average about $200-$250 in utilities, all my necessity bills like insurance ($132), phone ($150), etc. All my food comes from the dollar store.
I’m in collections with almost every debt I have. I’m drowning and I don’t have a single person to turn to. I cry at least once a week because I’m so stressed and I’m terrified of be evicted. I DoorDash on the side and donate plasma. I feel trapped in my current apartment because my credit score is shit now due to my debt and debt to income ratio. My landlord doesn’t know I have a new job because I wouldn’t meet income requirements and I’d probably get evicted. They’ve been so nice to work with me for a handful of months on rent payment arrangements but I can tell that is coming to a close. My rent is absolutely killing me. I don’t know what to do anymore. I’ve been searching for a higher paying job for a while now but the market is awful. I’m sorry for complaining, I’m just overwhelmed and I need help. I have never had any guidance on finances or basically anything adult and it’s really catching up to me now. How can I get into a new apartment with a shot credit score and debt? Is it even possible or am I stuck here in this vicious cycle until a better paying job comes along? I welcome any advice. Thank you.
Edit to add: I live in a 1 bed, 1 bath 699 sq. ft apartment.
I’m in debt, my rent is killing me, and I’m trapped.
byu/KarleySuinn inpersonalfinance
Posted by KarleySuinn
5 Comments
You will have trouble getting a cheaper apt with that score. You need roommates and cut your other spending (and when you can, income, but for now, roommates/spending)
get roommates to save on rent. i’m in a few housing FB groups for my city and people sublease their rooms in an apt and with subleasing, many aren’t doing a background or credit check
If all of that $135 is life insurance you are being absolutely gouged.
Is moving back in with parents or family an option? Even if the idea seems unsavory, you need a reset to pay off your debts.
Alright, let’s take a look. You probably take home $3K/mo, about ($22*40 hrs*4 weeks*85% taxes). You have $1,300 in rent, and ~$300 in debt payments ($155+30*4). You have about $750 in other required payments (car, utilities, insurance, phone). So your fixed costs are right around $2,350, leaving you $650, or like $150 a week, before plasma/doordash. That’s super tight.
First order of business. What’s up with that phone plan? $150/mo? I have the mint mobile 15 gig plan for $25 a month, but even if you splurged and did their worst value plan (Unlimited data, 20 gb hotspot, 3-mo contract), it’s still $50/mo, 1/3 the price of yours and giving you $25 a week, and probably takes care of your internet bill too. Get off your plan.
Second place to cut back – dollar store isn’t actually that good of value relative to Aldi or Walmart, primarily due to the fact the package sizing is smaller. Your cost/oz or cost/calorie is going to be better at Aldi/Walmart probably. Might be worth taking the same grocery list into those three stores this weekend, seeing the price and price per oz of each item, and comparing.
Third, time to get to some food banks. Hopefully there’s some in your area, there’s also “buy nothing” groups on facebook etc. Now’s the time.
Fourth, audit yourself. Pull your bank/credit card statements and look at how much you spent for the last ~4 months, and on what. Hopefully you’re somewhere approaching net 0 in income-expenses. But, there can be lots of “hidden” little things that eat up more than you expected – maybe a bill you left on autopay? Maybe you tell yourself you’ll eat out once a week but it’s 2-3x? How much of your utility bill is electricity? One degree warmer saves about ~3% of your bill each month. Whatever it is, that might be more room.
The biggest thing is netting positive at the end of each month. There’s things finance gurus don’t like about Dave Ramsey, but his sensibilities around getting out of debt make him a worthwhile watch. But if you’re trending in the right direction, then you’re in good shape. The important part is to be in a better financial position in ~septemeber than you are now. So keep applying, keep an eye on your wallet, and keep your head up, you’ve got this