I posted this on the credit forum, but I figure you folks might have some insight as well.

So, I just went through all three credit reports and made a comprehensive list of who is on there, who the original creditor is (as applicable) and what I owe. It may not have been the best way to start my day, in hindsight.

On my new combined "credit report", I have a whopping $14,316 in bad debt. That does not include my student loans ($29,000 or so) that are in good standing. Only accounts that are late or in collections. In addition, I know there is a debt of about $5,000 that I owe, that is not reporting. Not sure why it is not reporting, since the same CA is reporting other, smaller, debts, but it isn't...so I am going to leave well enough alone. There are also a few smaller accounts that are not reported, probably because they don't have my ssn.

But...my question is...how do I tackle this? In a good year, I make around $22,000. This year, I stand to make less than half of that. How do I pay $20,000 in debt, when that is all I make in a year? I don't want to file BK, it doesn't seem like I have enough debt to take that route, and I would hate to use that option now and not be able to use it, should I need it, later.

I just really want out from under this. It nearly prevented me from having a place to live this month (thank you Grandpa! Thank you!) and I can't even put the utilities in my name now. I am young, I am only 23. I don't want this to hang over me forever, but I can't help but feel like, if I don't take care of this now, it will just get worse.

All debts are well within the SOL.

Medical Debt: $5,985
Utilities Debt: $1,137
Loan Debt: $3,807
Bank Account: $1,087
Credit Card: $481
Misc: $1,319

Does it really matter how much you owe if you know you can't pay it anyway?

& the only reason you would have to use BK later would be if you spent more than you made in the future. but if you learn your lesson now, then that won't happen, right?


Personally, I am in favor of snowballing before BK, but that is a lot of debt for so little income.

Get another F/T or P/T job????????

If only it were so easy! I can't get a job waitressing in this town! I live in a college town with one of the worst job outlooks I have ever seen. The only job I have been able to get this year is a temp position that only provides work every few weeks! I moved here because I thought I would have better opportunities, only to find out that the college market overpowers the job market here.

I, with my five years of administrative support experience, cannot get a job in an office. I have applied at 10-20 places a weeks since arriving. In any other city, with my experience and references, I doubt I would have this much trouble. But here, they want 10 years of experience and they want you for $7.95 an hour...part time. I am lucky that my income covers my living expenses, but it covers almost nothing else. And those are almost bare bones (I admit to cable and internet...my two vices...but I share that cost with a room mate)

"Learning a lesson" and coming out of a BK with a snowball's chance at a fresh start is not plausible here. Filing BK will get rid of the current debt, but not the student loans and it will not bring you out of this situation with your present income.

You need more income, it's that simple.

If I were you, I would focus first on the bank debt, and also on knocking out that cc (just because it's the smallest debt). You will want to be able to at least have a bank account when you begin to get it together.

Move. Spend your money and your efforts to quickly move.

Live in a poor area in a city that does pay close to you - research this first!

Don't pick an area you don't like just for the money - take a chance and go where you will be happy later.

Become a temp as soon as you get there - earn a lot more, and don't be proud, accept day assignments, week assignments, with the first temp agency that gets you.

Put your resume on all of the sites now in the city you want. Update it weekly.

I have lived this - if there is no work, there is no income. If there is no income, you can't fix.

The move and deposits will run around $3,000.00. Rental truck, gas, mats, motels, food, deposits for electric, gas, rent, etc. That is moving belongings, furniture, cars, etc. Honestly, you can scrap that stuff, and get new later at garage sales - I did it more than once.

If it is really as bad as you say, pack your clothes and photo albums in your car along with small appliances, dishes, pans, and pets, and go.

My two cents

It is so funny that you recommended that. My last three moves (to college, from college and to here) have been with myself and two suitcases. That is how I LOVE to move. And moving would be a great option, if I weren't already doing it tomorrow (got three weeks notice that I had to move). Moving to a new city where the job market is better is on the list for spring. But it isn't in the cards right now. Ideally, it would have happened in November, if we weren't being forced to spend what little we had on moving now (yay for shitty landlords!)

I agree, BK will not be helpful if I don't have income afterward. As of right now, my expenses are as follows:

Rent: $397
Insurance: $65 (renters and car insurance)
Gas: $40 (sweet...gotta love my 38mpg car)
Food: $150
Cell: $80
Dog: $100 (special food and treats plus savings for future vet bills)
Electric: $35
Cable/Internet: $25

Total: $892 (about $300 less than what I am currently spending with the reduction in rent and utility bills and the elimination of a gas heat bill).

If I get the job I interviewed for today (a permanent position...I can only hope!) I will take home $1315. That will leave me with $423 a month to split between savings, incidentals and paying some of this crap off. Not a lot, I know, but it is $423 more than I can pay now!

I am lucky, even with the bank debt, I was able to get a savings with PenFed (didn't qualify for a checking). They put a 9 day hold on all checks, but direct deposits wont be held...so that is good. And I get to request that they lift the hold after 6 months of positive history. I will request a checking account at that time, as well.

For awhile I seriously considered BK because I figured, hey, why not? It seemed like an "easy" way out, but I don't want to make it easy for me. I figure if I make it easy to get out, it will just be easy to put myself back here. I know the damage BK does, and if I get to the point where I have no other option and I am going to be sued, it is the route I will take, but for now...I think that, given a plan, I can do this. I hope I can. I can't keep living like this.

Your budget is pretty straightforward. Everyone here is correct - you do not have a budget problem, you have a earnings problem.

I recommended BK instantly to a person here a couple of months ago as he had a chronic spending problem plus had no serious desire to act on that problem. Your case is vastly different - you have a reasonable budget and with a decent job you should be able to knock off these debts in short order.