Hi- I got divorced two years ago, single mom of two. One is a very expensive teenager that is driving now. Please no shame or being hateful. I understand how I got here and need to find a way out. My monthly income is $7200.00 and below are my debts. I am literally only able to pay my bills and get groceries. I’m not an option for bankruptcy chapter 7. Again please no judgment- only helpful discussions to move forward for my family.
Chase — Balance: $12,794 — Minimum Payment: $393
AmEx / Macy’s — Balance: $9,338 — Minimum Payment: $349
Capital One — Balance: $4,027 — Minimum Payment: $136
Capital One — Balance: $2,931 — Minimum Payment: $84
Big Boy Tires — Balance: $1,261 — Minimum Payment: $46
Black Luxury Card — Balance: $4,986 — Minimum Payment: $73
CareCredit — Balance: $4,425 — Minimum Payment: $173
Kohl’s — Balance: $598 — Minimum Payment: $29
SoFi — Balance: $2,075 — Minimum Payment: $70
Sam’s Club — Balance: $987 — Minimum Payment: $33
Mortgage 2000, utilities and bills another 500. Groceries probably 150/week. 711 loan monthly.
Posted by Mden87
13 Comments
There are some well known strategies to paying off debt, but ultimately the answer is simple: Put as much money as you can toward the debts. Start with one, pay it off, and move to the next. You may need to get another job, sell things, or use other strategies to bring in cash.
Look at this way: All of that debt, about $43,000, is money that *that has already been spent*. Now you need to work to earn the money.
> Mortgage 2000, utilities and bills another 500. Groceries probably 150/week. **711 loan monthly.**
To clarify: this $711 expense towards a loan is separate from the other debts you listed above?
Sadly simple. Increase income. Decrease expenses. Live within your means. There’s no magic.
Obviously reduce expenditure and save as much as you can.
If your daughter can drive, she can work if she isn’t already. Have her at the very least sustain herself (gas, car insurance, car note(if there is one), food)).
Tackle the highest interest bills first then go from there.
Refinance your house if you have equity and pay it all off. It will save you a bunch monthly and your head space will get much better especially if you close all those accounts down for good.
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Step 1, cut up every credit card you have.
Would your teen be willing/able to work part time so that their expenses aren’t 100% on you? I’m not advocating for kids paying their own needs, but the “very expensive” phrasing makes me think there’s a lot of wants in there.
I just added up your monthly total and it comes to $5205. You said your monthly income is $7200. Am I missing something?
Never pay by credit card again, you do not need to. Also, pay down each card as quickly as possible starting with highest interest first, don’t bother with any other methods, this is optimal.
Ow about a personal loan to consolidate the debt and pay less in interest
with $50k in credit card debt, you could look into Ch 13 bankruptcy. I did it and it’s been very helpful. Closes the accounts so you can’t respend, stops the interest accumulation so you can actually make progress, and sets up a reasonable payment plan that doesn’t drown you.
I was in the exact same boat, got divorced 13 years ago. I assumed all of the debt, which was $36K and gave my ex $70K from my 401K in order to keep the house, she left with zero debt. We shared 50/50 custody of our two youngest sons. I was able to clean the debt up in 22 months by forming an LLC and setting up a side business welding small parts in my detached garage, I did this in the early hours before the kids were awake and the weekends they were at their moms. You can do this, the key is to stop adding to the debt.