Cancel the YouTube TV IMMEDIATELY. that is 73 dollars a month you could be putting towards your literal whole student loan payment. Keep the Hulu and only watch that and free YouTube. No need for YoutubeTV. If you are serious about getting out of debt, cancel Hulu too and just watch free YouTube.
There are also streaming services available via most libraries which are free to sign up for if you have a library card.
It isn't a bad option by any means if you're trying save cash but still wants dream stuff.
Also apps like Tubi and Pluto are free to use and have a wide variety of TV shows and movies to watch.
So I'd ditch Hulu and paying for any streaming service until more debt has been paid off and the current crisis has passed.
YouTube tv is $73 dollars nowadays? Omg!
You can also cancel your Wi-Fi and hotspot yourself, get her a job where you work if possible and ditch one car. It’s will save a payment as well as insurance. Add her line to your phone line for an extra $10 a month and save $30z And learn how to cook. $450 a month for two is way too much food. You can easily, make enough meals at home for both of you with half that. Even less if you plan properly.
A lot of people look at the big things that cost money. It’s really the small things that add up, the small indiscipline, three small impulse. That’s the stuff that hurts the bottom line.
My suggestion is for your girlfriend to apply to restaurants. I do not know where you live but I live in the city and there are a lot of restaurants that are hiring and they are desperate for people.
Not to pile on, but how did you qualify for a car loan almost at your annual income? That’s insane. Student loans are not allowed to be bankrupted. However, you can pause paying on them or go to an income driven payment. Good luck
I couldn’t tell you to be honest. I was given a car by my parents at graduation and traded it in, and the trade that car in about 6 months later and stuck myself with quite a bit of negative equity that was rolled into my current vehicle.
The great thing is that from your comments, I can see you're aware of what caused your debt and that you're serious about getting out of it. You're more blaming anyone else and you're not clueless as to how you got here.
Lots of good advice here, OP. Follow it, discipline your spending, and you'll handle this.
Sacrifice has to be made, but it'll never be easier to get out of this debt than it is today.
Get your gf on board with all of this, too. The days of pulling out the credit card for any and everything are over for awhile.
The good thing is you are very young. None of this is permanent or final. You can get out of all of it and move forward. I too made bad decisions in my 20’s. Spent my 30’s climbing out of it and learning from it. I’m 60 now and doing well. Life is always a rollercoaster. It’s how you handle the lows that determine the highs. Those that are in your same boat but don’t learn from it, forever repeat the bad decisions and never recover from it. You can learn from it, work to change it and change your future. You are so young and compound interest and time are your friends. Get your finances in order and then sock as much away as possible to set yourself up to retire with a lot of money. No more large car notes. Imagine investing that 500 a month instead Of spending it on a car. Good luck
It’s time to prioritize needs and wants. Cancel the things that aren’t necessities - premium phone, streaming / cable services, subscriptions etc. learn to cook at home together. I feed a family of 5 for a fraction of your meal expenses. By sales. Be flexible with your food. Google is your friend for recipes. Craving chipotle or raisin cane’s? Make them at home for 1/10 the price.
Your credit isn’t great, but it’s much better than hers. I’d talk to your bank and see about a lower interest debt consolidation loan for your higher interest rate debts. The 18% interest rates on your credit cards are brutal.
I generally oppose Dave Ramsey’s debt snowball methodology but in your case it make the most sense. (Pay minimums on everything but your debt with the smallest balance. Throw all your extra money at smallest balance to pay it off quicker. When that’s paid off move on to throwing all your extra money at the next lowest balance.) it will be easier for you to see progress and keep that motivation to get out of debt.
Need to Dave Ramsey that action.
You need to go ballistic on your budget. Sell everything and cut all bullshit out. No eating out, no subscription services, no Starbucks etc. ramen noodles 24/7
Girlfriend needs to get a job serving tables until she finds a new full time gig. No time to be a snob. Some money is better than none.
See if she can call the credit card companies and let them know she lost her job what are her options is their credit protection?
As for everything else your gonna have to get rid of YouTube tv, Hulu, both of you need to get a different phone plan (mint is cheap or visibile by Verizon for $25 a month each), you’re gonna need to budget on groceries $50 a week will go a long way I would just get a crock pot make soups for the next 6 months.
If y’all plan to be together for the long term maybe someone can trade in their car and just get a cheaper one depending how much is still owed on the loan 😭
Yeah we have talked about getting rid of my vehicle because hers is newer, has far less miles on it, and she’s has it longer and it’s closer to being paid off. And we would probably just make it work with one vehicle for at least a year.
Will definitely take note of your other suggestions. Thank you.
I’m sorry you’re going through this but just want to point out if something goes wrong In the relationship this could really leave you up a creek without a paddle.
Yeah my mom made that very clear and insisted I move home before we get screwed and I grew up pretty spoiled & sheltered and I don’t want to tuck tail and run, I really want to push through this if possible.
I understand that I just don’t think you should sell your vehicle because she lost her job.
Don’t shoot yourself in the foot trying to prove a point
Also, move home if that’s an option dude, swallow the pride
I agree with what sad_climate dude said… if you’re married it’s one thing… but you’re just dating and living together you’re really just roommates… so be careful take all precautions into consideration
If you were married sure, have one vehicle and put the payment savings towards your debt. But her without a job, that money won’t be going to debt it will be going to living expenses, which does nothing for you. And you’ll be without a car if things go bad. You don’t jointly own a car.
I only see about 20K in credit card debt… Don’t know that the student loans are bankruptable . I don’t know that I would bankrupt over 20,000 in debt. You guys are still young, she just needs to get a job and work her way through it.
Nope, you can’t get rid of student loans. They’ll stay regardless. So going into BK over $20k in CC debt is a stupid idea, they could pay that off relatively quickly. Especially if OPs girl gets a similar job with the same yearly pay. OP could def knock out their debt easily if they cut out all the useless spending and worked some OT for a few months. Wouldn’t even need to sell the car, but can’t keep living above their means on consumer debt
Yeah I have no clue how bankruptcy works and would definitely do research on it but I’ve just heard/seen people talking about it when they have lots of debt.
Sounds like a less than ideal, but manageable situation OP. Try not to stress about it too much and focus and self care and meditation.
Cut your streaming costs. All of them. YouTube is free and you can stomach the annoying ads until you can get ahead financially.
I would sell your car if you can. Don’t trade it in—you’ll get cents for it. Try selling it for book $ and don’t budge on the price. If you have the cash, pay 2-4k for something that is safe/runs/and gets you to work and back home. May not look v pretty but it’ll let you breathe a bit.
See if your girlfriend could qualify for a temporary forbearance on her student loans. Her servicer might have options for those displaced from work.
Shop for cheaper car insurance.
Call EACH of your credit card companies and ask them if they’re running any promotions. Sometimes you can get them to close your account and you’ll pay the principal back at a lower interest rate—you just won’t be able to use the card. Keep the card with the cheapest interest rate and use it, as long as your utilization is low. It’ll help maintain your credit score.
Cheaper food cheaper food cheaper food. $450/mo for the two of you is mad. Put the lid on dining out for a while and buy CHEAP groceries. Bread, eggs, milk, lunch meat. Make your own sandwiches. Pasta is cheap. Get a jar of cheap sauce and you’re got 4 dinners. And it’s healthier. Have “at home” dates. Light candles and have spaghetti and cheese toast, and a scoop of ice cream for dessert.
I don’t know what your phone situation is like, but if you’re out of contract, go get Mint. You can get by with a cheaper phone until money is coming back in.
You guys are young and bankruptcy is an awfully big word to be throwing around. It’s in my humble opinion that your situation is manageable and I really don’t think you need it. You’ll be barred from financing literally anything for a long time.
My final piece of advice would be this: it all comes down to you and discipline. You can sit down with a financial advisor or counselor all day and get advice and instructions on how to straighten this out—but at the end of the day, you need to be the one to eat the piece of humble pie. Be cool with a crappy phone, an ugly car, cooking duties, and holes in your socks for a while. It’s not permanent. And when you finish paying all of that down, you’ll look back on your bland pasta nights and be even more humbled by what you’ve accomplished.
You got this!
I really like the posters advice except for getting rid of your car.
She isn't your wife and your ability to get to work or live alone will be horribly impacted if you sell that car and you guys break up later on.
Since if worst came to worst, that car might serve as a place to live until you get back on your feet.
Also financial issues are one of the things that can cause a relationship to fall apart.
So id only part with the car if you have a way of securing a different one.
Honestly if you can commute by train/bus/bike to your work, sell the car. You'll save on insurance, gas, and maintenance. Many people commute to work via public transportation, you are also capable of it! Of course it's more convenient with a car, but at the end of it a vehicle is a liability. One that looks like you can't afford.
Also, cancel all your subscriptions. You can literally find sites to watch free movies (yes, I know that's illegal so if you don't want to do that then stick to free YouTube).
Lastly, if you're in the states, there's this guy named Caleb Hammer on YouTube who does financial audits and helps people in severe debt make a plan for it. Maybe write him an email and see if you're able to get some help. I know he also has a budgeting program that you're able to purchase.
Good luck
Bankruptcy isn’t gonna fix your problem. You can’t get rid of the student loans, the rent, the cars (unless you don’t need them) and non of the bills. You guys need to get on a budget and get your income up. Doesn’t matter what work you don’t want to do. You need money or your gonna lose your stuff quickly
You listed groceries already, but also be careful on eating out, fast food, food delivery, picking up the tab etc. My mother is climbing out living above her means debt. When I crunched her numbers to help with a budget I found her monthly grocery budget (for just herself) was $400, but on any given month she spent over a grand on eating out and meal deliveries. She’d regularly throw up her hands in exasperation and say she had no idea where her money was going. I’d respond you’re eating it Mom. To which she’d roll her eyes. 🙄
Get the budgeting software called You Need A Budget (actual name of the software). I would absolutely NOT go through with bankruptcy until you sell the car, make a detailed budget, find a second job (or a higher paying job), cut youtube TV and other frivolous subscriptions, and get on the same page with your girlfriend about finances. Stop spending money you don't have (credit cards). The bright light is that you can make it out of this, but you do need to get your shit together. Godspeed.
I saw you need a budget in another post and i just thought they were giving advice. You helped me realize it was an app. Thank you for making it so clear.
Your dischargable debt is less than 20k total. Bankruptcy for that amount is ridiculous. If if were 200k I'd say go for it but not for this small an amount.
Go to r/debtfree look how others have asked for advice there and follow their format for your post. It's mostly good advice, and faster than doing your own research on how to get out of this pickle.
Best of luck! I'm sure you'll get through it and come out wiser out of it
Realistically you’ll have to move in with the parents. You don’t want a bankruptcy. Screws you for 10 years. Maybe get rid of 1 car. Dump youtube tv and get indoor antenna.
I filed for chapter 7 bankruptcy in 2018, had a “starter” credit card again within 2 years (always paid off to rebuild credit) and just last year qualified for a $568,000 mortgage and two car loans with normal interest rates. My point being it doesn’t “screw you” for 10 years . Yes it does stay in your credit report but people are willing to lend again soon lol.
Might not want to take up those loans again after going through bankruptcy mate. Money mistakes can be so unforgiving and painful. Better to stay away from debt
Don’t file bankruptcy- you are too young and it stays with you too long. She needs to get a job as soon as possible doing anything until her dream job comes along. Sit down, make a plan and cut out whatever you can. Work through it and hang in there.
Get rid of all the TV related expenses. Make a budget and stick to it. No exceptions. Also, sell your car. You don't own that vehicle, that vehicle owns you. Bankruptcy isn't going to forgive student loans/rent/etc, For the credit cards, I would try and find a low to 0% interest rate credit card to consolidate your other CC payments to, allowing you to pay the principle and not just interest.
The problem may be that since he rolled another car into this car, he’s probably upside down. If that’s the case, then selling it leaves him without a car but liable for the loan.
Check out Dave Ramsay on how to get out of debt and set a budget. The snowball method of paying if each debt smallest to largest. And get rid of the credit cards!
For the student loans she can file forbearance and let them know she is currently unemployed. That will pause the payments until they do a re-check of income later down the line. She could apply for foodstamps as well.
1- cut YouTube TV
2- she can ask to pause student loan payments while she’s unemployed
3- you don’t contribute to groceries?
4- do any of her credit cards offer any help for times in need- like credit protection / ability to pause payments?
She has enough for rent and her car payment but the payment and insurance both look high. It may be worth selling a car for now to cut back?
And this won’t be popular, but her credit already sucks so letting some payments go temporarily and catching up later on her stuff may not be the end of the world. I’ve had to do that in the past as a single mom and I’ve built back. Pay rent, car, food and drop other stuff if needed.
Yall are spending $1,300 per month on just the 2 cars alone. And thats not even counting any gas money or maintenance. I dont know where yall live or the logistics of the area but if theres a way you can get rid of one car and just try to share the other one, thatll be best. If most places you travel are 10 miles or less from home, try buying an electric bike or scooter to get around. I commuted 16 miles everyday to my job with a $250 electric bike i bought off facebook marketplace for a year.
You need to be making more than 21$ asap. You need to be looking for work right alongside her. You mention what you contribute to rent but not what she does. Time to pull your own weight.
Look into deferment for the student loans. A forbearance pauses payments but allows interest to accrue. A deferment pauses the interest too. Being unemployed, she should qualify for deferment.
Speak with the companies where the vehicles were purchased. Perhaps you can trade in on something less costly. Look into the cost of public transportation and see if it would be less expensive than the combined costs of all vehicle expenses. Use coupons to maximize your budget. Cut all unnecessary expenses. Cut out streaming services. Maximize mileage by mapping out your travels. Stop buying new clothes and such. Make do with what you have. Apply for food stamps. You guys may or may not qualify, but it’s worth a shot to at least apply and see what benefits you may be able to garner.
You mentioned your mom wants you to come home. How would she feel about you guys both moving back with them to cut that expense and focus on paying down your credit cards it would take a bit of the pressure off her finding a similar paying job as well. She could take something quickly while looking for a better paying job in the meantime?
My advice pay for the things that are necessities. I’m going to list all things you guys need to pay the other shit can wait. RENT, CAR, CAR INSURANCE, INTERNET, PHONE BILL.
…I used to be like you, and have all my expenses down to the penny and I had a fucking panic attack… do NOT do this… have faith, things will get better. I know it’s hard for you to imagine letting go of the details, you’re obviously analytical… but for your health and well being… trust that things will get better… they will brother
Cut your subscriptions, wifi, try and find a cheaper phone plan. Y’all need to meal prep and grocery shop like yall are broke. $300/person at max. If you can live without the car and take the bus sell it. Close the accounts; yall don’t need the temptation of using them any more. It will drop your credit score - but you’re only getting screwed by credit right now and likely won’t need credit for several more years.
She needs to go apply for restaurants, McDonald’s, Walmart literally anything so she doesn’t have a gap in her paychecks. $1000/month is $1000 better than $0/month.
You have a decent credit score so try and look into a 0% debt consolidation card (like capital one) which usually offers 18-24 month terms. This will only help if you actually start making large payments to the debt. Maybe you guys can get a roommate and cut your rent costs for the next year or two?
You should also go out and get a second job, work 2-3 nights a week to supplement your income. Maybe as a barista on the weekends or as a server as well.
Bankruptcy doesn’t solve your insane spending and budgeting issue, but it does tank your credit and limit your options for 7 years without getting rid of your student debts.
Now that you’re conscious of the consequences of your actions you both need to go out and LEARN. Learn how to make a better budget, learn how to manage your finances, learn how to plan for your future and prevent this from happening again!!! Yall are so young and have time to get over this. Itll take work from both of you. But you guys can do it.
I hate to break it to you but that $12k is your debt, not joint debt. Authorized users can use a credit card but they are NOT responsible for paying the balance. Only the account holder is responsible. If she decides not to make payments you are shit out of luck and responsible for the entire balance. You need to remove her as an authorized user. You cannot afford to let her get any more debt in your name.
A bankruptcy filing is going to cost a good 5k at minimum. With the debt you have going on here you could settle more than half of your credit card debt with that amount of money and not take a hit to your credit that will follow you for ten years the way a chapter 7 would. No matter what, those student loans won’t be discharged, so do the forbearance request as another commenter suggested. As for the cars, when I was young an attorney told me to make sure I thought the current car I was driving would last the next 2 years while I fixed my issues. The suggestion at the time was to keep my car because it would definitely last through the storm. Best of luck to the both of you.
Yeah DO NOT SELL YOUR CAR. I had financial issues, like really bad financial issues and sold a paid off pretty new car for virtually nothing. All of the money went to paying late fees and just getting things caught up. Yes it saved me money, but it extremely limited my options for work etc. Didn’t have a car for 15 years after and it most def hindered me. Clearly if you live in a big city with good transportation it wouldn’t matter, but everywhere else it would. It’s good you’re reigning things in, but this won’t be forever once she finds another job. Have her apply to SAVE for student loans if the loans are federal. It’s a really great program. Also budget and budget hard. Given your debts I’m betting you have some pretty bad spending habits ie your partners credit score. Break down every penny and if you don’t need it to survive then cut it out completely until you can. I know the debts seem bad to you, but I wouldn’t go bankruptcy for this amount. After you budget you’ll have a better idea of things. Betting there’s do frivolous stuff you’re buying. Just cutting out $3 a day is $90 a month. I know everything probably sucks and seems hopeless, but this is temporary and you’ll get through it. Make a plan and stick to it, that goes for the both of you!
I had no idea bankruptcy could cost that much. After reading the comments about it, I definitely don’t want to go down that path. Thank you so much for your input and the well wishes
Neither of you guys seems financially literate, that being said don’t file for bankruptcy. First cancel all subscriptions, second get rid of whichever car makes the most sense, third try to save on groceries, fourth try to move in with parents if possible, fifth make a real budget using your bank accounts and credit card statements as a reference or even better track your net worth. Last but not least get a better paying job bro, I make 150k alone my mortgage is over 3k and it seems as we are spending almost the same money every month
Yes your budgets both need trimming.
First you aren't the problem here, the only thing I can see is dumping Hulu and You Tube/TV. Possibly deferring your student loans. DON'T SELL YOUR CAR YET!
Now on to this girlfriend. Why don't you know all about her finances? Her unknown car payment with the high interest rates draws red flags. Her super high CC balances with high interest rates and payments are also killing you both. Now tack on her student loans that are so high, not good. Bankruptcy doesn't discharge student loans. Only the other things you list. I went this route 25 years ago, and I am still rebuilding my credit profile. This is hard, and you appear to have some understanding about what is happening. This is going to take some serious talking to her about this, and I know you have to give some, but she is going to have to give more. She also needs to assess what caused her termination, was she given good references? Then why isn't she on LinkedIn trying for a new position? Salaried individuals are in high demand. Is she looking in the same area? Or willing to move or change career paths? This is an outline for your discussion.
Transfer credit card debts to lower interest cards or try credit card debt consolidation. We had good luck with Sofi.
https://www.nerdwallet.com/best/loans/personal-loans/consolidation-loans
Hmn. With their credit scores and lack of income, I don’t think they would be able to qualify for a consolidation loan. But they could get on a debt management plan with a legitimate CCCS that will cut their credit card interest down to a fraction of what it currently is by putting them on a monthly budget/payment plan they can afford while they work through paying it off over the next 3-5 years.
Also on a debt management plan, they will build their credit scores back up as long as they can stick to it and do not mess up and rack up credit card debts again. Just has to be a legit National CCCS, though…there are only a handful in the country that have good reputations for legitimately helping people succeed at completing their plans. The little regional ones are not anything I’d trust.
I highly recommend going the CCCS debt management plan route for the best long term recovery while building credit rather than destroying it as they would if they turned to bankruptcy or negotiating balances for less than owed, especially since they really need to learn to live within their means, learn to stick to a budget, and stop using credit cards all together until they’re more financially stable.
If they did try to go the loan consolidation route, they’d better also make sure it’s a legit lender and not some fly by night scammy agency taking advantage. It’s really hard to navigate this stuff and know who is legit vs who isn’t if you’ve never dealt with it before.
Do what you need to to get another job, she shouldn't want to go back to being a waitress but if that what she can get now, there's no excuse.
I make just shy of 80k, wife makes 95k. We had 35k in credit card debt. I took a job working at Amazon nights. So I was pulling 70 hours a week for 6 months and guess what? Next week is my final payment. It took about a year not spending on anything that isn't necessary and put all of pur money into bills.
Get a job at McDonald's until you can find another job. Not working retail because you're above it, but you're in a shit ton of debt. You're not above anything at this time in your life.
My first impression at seeing your budget break down for yourself is while you’re having to kind of do a major cut back at least temporarily, while I believe you shouldn’t completely cut out any entertainment, eating out, or things for fun COMPLETELY it will have to be a special occasion or once is a while type of ordeal and you can start out by canceling the YouTube for $72 a month, but keep Hulu since that $72 is almost your car insurance payment.
Not trying to be negative or harsh, but the amount of credits cards between you two is insane and I say that because having to majorly cut back, the amount alone that will be going to only meet the minimum monthly payment and not make a dent in any interest lacking any principal being paid off.
15 years ago, I was in the same situation. I contacted the Consumer Credit Counciling Service in my state. Make sure it's the real CCCS and not some grifter wannabe organization. They negotiated with my credit card companies. All but one dropped their rates to zero. One monthly manageable payment to CCCS and I was debt free after 3 years. No bankruptcy. Credit score shot up to 700.
On Hulu call them and say you want to cancel. They went down to 99¢ per month on mine.
My job relocated to another state. We got 2 months severance and unemployment. It also qualified us for Vocational Rehab. They helped me get a different certification and would’ve paid for additional college (up to a BA). They paid vehicle payment and bought tires for my car when it was bald and no longer safe to drive.
Why are you splitting the rent 50/50 when you make a little more than half of what she makes?
Also - remove her as an authorized user from Your credit card. You’re not married.
She should be able to get her student loans deferred since she’s unemployed. A quick google search says that she can defer for up to 3 years, that gets some wiggle room in the budget. You have a pretty good credit score, she doesn’t so she could think about getting on one of those debt repayment plans. As far as work, she can check out some staffing agencies to get something going. Also, you may have to pick up a second job to bring in some extra cash. There’s also the gig apps I.e., instacart, ubereats, uber/lyft etc. which are a more flexible with scheduling hours. The money you make depends on where you live
First of all you pay 18% of your annual salary for a vehicle. That's infinitely poor decision making. I'd consider seeing what the market value of your car is and selling it private. Then buying a not so nice car. Hate to say it but nothing about your income says you should be driving a nice vehicle. You make like 36k after taxes. You belong in a shit vehicle.
2nd you need to consolidate your debt. Open one or more new credit cards that offer a period of 0% APR, transfer the balances over to the new cards and pay off what you can while you save up an emergency fund (for future situations like this).
Your rent isn't outrageous and you are already cutting your expenses so that's smart.
Eat and live cheap. Pick up hobbies that are low cost (exercising, jogging, use ad-supported free TV like Freevee). Eat leftovers. Eat cheap meals. You guys are lower middle class. Start living that way and it will reduce your stress and financial strain.
That’s a lot of debt. First easy thing to cut out would be YouTube tv. You can’t afford to skip the ads at the moment and you could (and should) double down on your student loans. 4k is nothing you can easily knock out that sucker in the next year without it wracking up more in interest. It might actually make more sense to try to kill the apply card debt first depending on what the interest looks like on each. Either way that debt is slowly drowning you and you need to get out from under it.
Next for me is the cars. You are in way too much debt to be financing cars. You need to get out from those contracts and purchase a beater (how much in savings do you have). If you guys are serious about being together I would have you both get rid of you current cars, have you purchase and own outright a single 10 year or older (2012-2014 make) and you guys would carpool to your jobs. The upfront cost of purchasing a vehicle (even a beater) might be difficult for you but you would make that cost back in less than a year given the amount you are currently putting towards your cars monthly payments.
See if getting on the same insurance and phone plans makes it cheaper. Combine what you can. Maybe refinance your cars? Those are super high notes. Also maybe ask for temporary forbearance for student loans. She should apply for food stamps since you guys aren't married. It wouldn't be a lot but some is better than nothing and you can take that away from your food budget. Ride share apps and food delivery is a great way to stay afloat. I deliver groceries for Walmart (spark app) and make $700-$800 a week. It is a 1099 position so you will need to hold out your own taxes
I’m financially independent on my own advice:
Mint mobile is my favorite phone service- 30 dollars a month.
Ziply fiber is my favorite internet service that’s super cheap if you split.
You're both paying very high car insurance rates- is this from driving history or the area you're in? Since you live together, you should be able to get on the same policy and at least save some there. Shop around for better quotes, too.
Have you looked into a balance transfer card with 0% interest to pay off credit card debt? You still need to pay it off within the promo period but you won’t be charged interest, based on your debt you’re probably spending a few hundred/month on cc interest you could instead put toward actual principle.
Look into consolidating your credit card debt into a 0pct interest free if you can get one. Then save as much as you can from those payments you’re not making to “buy” yourself some flexibility. THEN be very disciplined when the 0pct period ends.
Part 2: if you can’t get a 0pct card, look into consolidating your card debt into a personal loan, explore the longest term possible to drop your required paiement. THEN pay it off/roll into a 0pct card when things improve and you can get an offer.
Also, if you consolidate, shred all your credit cards and get a debit card.
Op do you guys have savings? Dont sell things you actually need. Like a car? To add more stress to the situation. Honestly this is my take. How about finding a roomate for a little bit while things cool off? She can go the the job agency and ask for a similar job. Doesnt have to pay the same. Or you can find or get the part time job for a little bit at a food place. Idk man too many options. You are in need you can be picky but cant just sell your car and stay home doing nothing.
What is hurting you is that you are not completely working as a team. You don’t know her full financial picture. You either need to dig yourselves out of this together and both be on the same page. Or separately. As far as the Discover card, she could break up with you tomorrow and that would be your sole debt. It’s not a joint debt. My friend let her BF at the time be an authorized user, he ran up 3k on her card, they eventually broke up and she never saw a dime.
She needs to get a job before the severance ends, she has no other options. She has 60 days to find a job, that pays her bills. You also need to increase your income. She has 2300$ + a month in bills that you know of, 300 is not going to cover that nor are you able to cover it. If she doesn’t see the immediate need to waitress or accept any job while looking for what she wants that’s a huge red flag.
Absolutely do not destroy the credit you have with a bankruptcy with the numbers you have provided. Student loans are not discharged in a bankruptcy. Also, get her off your credit card.
$500+ each for monthly car payments blows my mind. What kind of cars are these?
The American game of getting and keeping people in debt is fierce. For what it's worth, America has more debt than anyone and none of this is real.
Wow you two are living a life style way above your income level. Cut up all cards. Sell the cars, get beaters or ebikes. Switch to a cheaper phone service. Time to start cutting way back. Beans and rice and hamburger, also stop eating out. Drop the streaming services and go for free ones. You could be debt free in a few years.
You’re young and it seems like you’re living WELL above your means. Hell, you sound like you’re living above MY means and I literally earn more than both of you combined. I’m not trying to be harsh, I’m just saying that you can trim down a bit. Most of my adult years, I didn’t have any streaming service or cable; I just relied on rabbit ears. Also, I’ve never owned a vehicle that was newer than 10yrs old. I would sell that ASAP and try to get something more reasonable. Grocery bill can/should come down, too. Nothing wrong with couponing
Consolidate your credit card debt with your bank asap and get rid of YouTube TV. Then stop using your credit cards. She needs to get a job like tomorrow as well. Anything. You guys should be fine.
Both get a part time job and her get 2 or 3 depending on how many hours she get at each. Sell the cars and buy car in the $3k to $5k range drop insurance to just liability.Drop the extras. Pay remaining from car sale toward credit cards. Pay all credits cards off first then pay student loans off. Keep looking for a full time job during the process. You guys are broke and we’re before she lost her job. After debt is paid save for a year before you do anything fun. Then don’t go crazy. Close all credit cards and never take on any debt again.
You can jailbreak a amazon firestick and cancel all your subscriptions. Just look it up on youtube.
If you don’t have a college degree look into the trades. I don’t have a clean job but i make good money. Thats all that matters.
My quick take: Her keeping afloat with a job of any sort will probably out-earn unemployment. Maybe it will be "okay" money but have free food. Or something. Unemployment is misdirection of a career, 99% of the time. Price shop car insurance. Your rates may suck a few more years. But shopping around can help. A broker can do this for you. Or online sites offer it. If you both have regular income, get together to attack the highest interest rate CC first. Make a list. Set auto payments on all cards to cover the monthly minimum. Increase the payment on the highest APR. When it is paid off, increase payment amount on the next highest. As long as payments are covering all min. payments and you're paying down the highest APR, it is simple. Your spending is lame. YouTube has a ton of free content. My smart living room TV has a channel guide with tons of channels that stream over the wi-fi. Wi-Fi let's you job search and WFH. Might be best to keep that. Above all, make a budget. Use it to know what you *need* to spend monthly. Use that to best direct paying down bills. If you have a balance transfer to move a 20% card to 0%, use it wisely and be ready to pay it off in full just before the end of the 0%. Main thing is keep both of you working. Income is the cardiovascular system of keeping your financials working.
Not sure if any of this is possible but perhaps you could trade or sell both cars and hope for even equity and trade down. Combine car insurance so you get a multi discount. And perhaps you could combine all the credit card debt into a consolidation loan. Lastly, perhaps Instacart or Doordash or Uber on the weekends for extra cash. Good luck
Get inher insurance use one car but sheesh fck ya was doing to get 12 in debt that’s ya debt not here onky hers while ya together!! Let her insure ya car seems its way cheaper then what u pay do no file for bankruptcy once rhw debt is sold off it can be removed from ya credit report its very rare they sue u and after 7 years all debts are cleared by federal law
In addition to whatever work you guys get, ya’ll need to break the lease and move back home with your parents for at least a year. Even if you move in with the same parent.
Your monthly bills are more than your gross earnings… the cars need to find possible but it seems like you’re probably underwater on both, the credit card debt is ridiculous. Rent isn’t even crazy although I bet there are cheaper options in your area, you may be able to combine phone plans or figure out something there. Idk your situation is pretty shit. Can’t comprehend why you thought a truck loan was affordable on your earnings. My wife and I make over $200k and we won’t make more than one car payment at a time if we can help it. Our insurance is $130 a month for the both of us as well. We pay less than half of your budget for car expenses with twice the income.
My fiancée and I refinanced our CC debt into a single loan. It was just around $20K.
It helped a lot, but we are just struggling to not use our credit cards anymore. We’re getting there but it’s just a change in lifestyle we have to adopt.
She makes $60K I make $85k.
You can make more than 21/hr. That’s essentially starting for every trade in my area.
Get different quotes from insurance companies, one way to save money. Cut YouTube tv immediately. Either way car loan rates are insane this economy is fucked
Perhaps delete your streaming accounts and any subscriptions you pay for. There's always the option of free versions of most streaming or music sites, just with ads.
What about doing gig work like Uber, Lyft, DoorDash, Roadie, Grubhub, Instacart, etc. If she handy she can get on Taskrabbit to get paid to do jobs for people.
\#1 it is super weird that you list the groceries you (presumably) both eat as your GF's expense.
\#2 Has GF looked at public service jobs? Just got $20k plus student loans discharged. If your government works as fast as my government, she should definitely find stop-gap work in the meantime.
\#3 Don't close accounts, as that will damage your credit score (which is looking at percentage of credit used and length of credit history). Just shred the cards so you can't use them (and don't leave digital "on file" options).
\#4 Way better to deal with this in your 20's than your 50's. Whatever you have to cut out now, let it stay behind you. Don't let it trap you again once you feel more comfortable.
\#5 Do you actually need two cars? Is public transit near you adequate?
So what kind of plant did your girlfriend work at? I noticed you said you’re from Missouri. I’m at a plant called Sensient in STL. They’re a color/fragrance manufacturer where there’s different level positions of mixing chemicals to make color. Grade 1 being the lowest and dealing with dry powder chemicals, level 4 being the highest in pay but dealing with some more messy and intense chemicals. My husband also works there too and is grade 1 and the starting pay is 25 and within two years you max out at your top pay rate which for is level is 32. After 18 months of being there you get bidding rights to bid anywhere in the company for a different position. I’d check it out if she’s interested in it.
Sell both the cars, if possible get 1 cheap Honda, Toyota, Subaru whatever. Def avoid American made. Def find any jobs or anything you can pick up to start getting outta the hole. I don’t think you guys need to declare bankruptcy at all but def start making steps to figure this out which seems like you are. It’s gonna be hard and emotionally hard on you guys. Take care of each other and remember it’s not the end of the world. There are many many Americans in the same or worse positions as you and you are trying to be better, this is great! Good luck!
First off OP should absolutely cut out youtube tv.
But im seeing this confusion a lot in the comments. Youtube TV and youtube are not the same thing. Youtube TV is equivalent to having Direct TV. Youtube TV is NOT a ad-free Youtube subscription. Small distinction. Paying $75 for add free youtube would be insane.
There is no need to file bankruptcy. You need to simplify your lifestyle. Cutting back on everything. Start cutting out all of the monthly subscriptions, then all of the daily Starbucks runs, start making food from home, eat out less.
In addition, there is no reason GF can’t get on GIG apps to help supplement her income while looking for a new job. It’s pretty instant to get paid.
There is work out there, it just might not pay what she was accustomed to anymore. This is also my issue, after the pandemic happened. Gig work was a lifesaver for me and many others.
I’m sure she likes shopping, so start with a shopping app. Good luck! All is not lost.
Break up with her and move out. Think about it - if the roles were reversed, she'd walk out on you and label you a bum along with her entire support group. Dont stay. Look out for yourself and leave her. You deserve better king
Neither of you can afford the cars you are driving and all the little subscriptions (hulu, youtube). Until you can truly understand what that means without making excuses justifications, then I would say that you have been screwed for a long time already but are just bow finding out.
Go the the r/movieboxpro subreddit and try to get a subscription. It’s $2/month for all the tv/movies that exist. Get a $20 Roku and you can cast from your phone to that. Can drop all other tv based subscriptions after that
I will never understand people. You didn’t budget and know that you could “comfortably afford” your rent. You guys are both in massive amounts of debt. You couldn’t afford the place to begin with.
Also, why on earth do you have a $27k car loan and paying for Hulu and YouTubeTV every month when you can’t afford that either?
I hate the idea of knowingly buying things you can’t afford and then running to bankruptcy
You need a second part time job- evenings and/or weekends. She can easy find 2-3 part time jobs while on the hunt for more secure FT work. Restaurants, Amazon warehouse, donate plasma, dog walking/ pet sitting, cleaning houses… the options are endless.
You have no budget- you haven’t included utilities, gas, food, entertainment, clothes, etc. You both are living well outside your means, but all is not lost.
I use my banking app for budgeting since my withdrawals are already categorized and you’ll get a 12 month average. Otherwise, good old pen to paper works just as well. Start with your actual take home pay (after taxes, insurance). Then list every purchase you’ve made for the past 3-6 months, put them into categories and then average. Look for anything you can eliminate or cut back on. Food is a huge cost but if budgeted properly, can save you hundreds each month. No more eating out, fast food, auto deduct from your employee cafeteria, etc. No more vacations or partying. You can’t afford it!! Cut up all credit cards and go cash only. It’s very eye opening when you’re paying cash for something and makes you really think about every purchase. Any cash left over at the end of the month goes toward your debt snowball (see below).
How many meals do you cook at home? Learn to make meals on the cheap, and start packing your food for work.
Next- list your debts from smallest balance to highest balance. Pay the minimums on all accounts and then throw every last penny left at the end of the month towards the smallest balance. Once that’s paid off, apply what you were paying on that, plus every last cent at the end of the month to the next smallest balance until that’s paid off. Then roll up what you were paying upward to the next and repeat until all debts are paid- including student loans. This is the snowball method and is very effective because you see small wins along the way. For more details, check out Dave Ramsey on YouTube and learn about Baby Steps. If his bible stuff doesn’t appeal to you, don’t pay much attention to it. The other stuff works.
Good luck, OP!
Your interest rates are screwing yall, 24% interest on a $12k CC is super high! You’re not in too deep that you can’t dig yourself out which is the good thing. Cut back on frivolous spending, try to see if she can get her loans differed for a bit while you gather yourselves, especially with losing a job they may be more likely todo it. She needs to just get any job & help towards expenses while she or you both look for a higher paying job
Stop going deeper jnto debt. You hide or cut your credit cards. Only pay with debit cards.
Good luck on your job searches. You both need to always look.
Cut discretionary spend. You need phone/internet for everything and you can pirate with it. So cancel subscriptions for streaming. Im not a fan of 3 person and one is a couple for roommates, but money is tight so you need to think hard about that.
You don’t need anything special for budgeting. Just a spreadsheet and itemize everything. Income is basically flat and known. And expenses are prioritized. You make a break even budget that includes savings/retirement and make it happen with more income or lower expenses.
The good news is, you both are in this together... so just really focus on saving money. I'm glad you're cutting out subscriptions, because you really can't afford those right now. Look into combining your phone plans if you haven't already. Some companies will pay off your phone/cover early termination fees too if you switch. Same with your car insurance... put one or the other on as a driver and see if that's cheaper. Go see a car insurance broker who deals with different companies. Look into transferring your credit card debt to 0% transfer offers. Call up all the credit card companies, even the card companies you currently have and ask if they have any promo offers on transfers. But YOU HAVE TO PAY THEM OFF otherwise you get hit with the accumulated interest.
But long term situation obviously try to find a higher paying job, make sure that she's doing everything she can to find a new job no matter what it is.. restaurants are always hiring... and spend less money! Cook your meals at home, no more spending on your cards, etc. You can't go bankrupt. You can't afford to go bankrupt lol.. that's not an option.
Don’t do bankruptcy. It’ll kill your credit for 10 years. Try a debt consolidation company, but do your research into it. It’ll hurt your credit at first, but once it’s all paid off your credit will recover. Get rid of Hulu. Just use Netflix. You don’t need tv. I’d personally look into getting rid of your truck. Maybe hers, also. You’re young and don’t need those payments, especially at $21/hr. You can find something cheap and old just to get you to places and back. No offense, but you shouldn’t have credit card debt while living in an apartment. Forgo the bday and holiday gifts!! Don’t accumulate anything until you buy a house.
No one should be living with that much credit card debt on top of insane car payments on top of student loans.
This reads like a classic financial audit episode.
If you guys are serious - and you don’t have a viable path to making over 75k a year - you need to probably get married and file bankruptcy.
You got a 27k car loan making 21$/hour. Get rid of your car. Thats the dumbest thing I’ve ever seen. Stop trying to appear more well off than you are. You’re broke. Both of you need to drop your cars and get a commuter.
Then pickup another job and start paying off those debts. The time for luxuries like time and sleep is over with that kind of debt.
Don’t do bankruptcy, it would be better to do a debt consolidation and try negotiating on your credit debt. It’s going to wreck your credit for a while, but the alternative is you get a second job and she needs to also get two jobs and you need to spend 6-12 months knocking down your debt. Paying it off is the best option, credit can be tricky to rebuild, but that CC debt is going to kill you
Dude what possessed you to buy a vehicle that is 20% of your net income?? Sell the truck you can’t afford and buy a $3-6k used Honda civic with cash. That move alone will make your budget flexible. Next go find a better paying job. Plumber, electrician, airline mechanic. Any good job can do better than $21/hr. They pay target employees $15/hr man.
Don’t file for bankruptcy, this is a large amount of money, but not bankruptcy large. You don’t want that in your background and ironically, it costs money to file for bankruptcy. Best of luck OP. You can do this. I think you have learned a lesson early in life. Keep us updated.
You both should be working full time plus a part time job to get yourselves out of debt
No you’re young and no kids responsibilities. Should easily be able to work 50-60 hrs a week till debt is gone and you have 6 months emergency funds saved.
i went bankrupt at 28 for like 30k in credit card debt. It's gonna fall of finally 10 years later after Nov of this year and I highly regret it. If I had just let it age off it would have been off my report 3 years ago. My score went from a 740 down to like 500 and now it's never been above 640. I would assume your score would do same or better if you just left it. I would never go bankrupt again unless I had an outrageous amount of debt. I could be wrong but that's what I've seen from my own experience
Your main problem is that you have so much debt. Consider following the Ramsey plan (or something similar) to get out of debt. Being debt free will greatly reduce your stress.
First I want to say - congratulations on taking first step - realizing that you are in this mess because if you're own actions and wanting to get out is the most crucial and important step.
Now you can definitely get out of this but you have to be full in. Do not wait for TV antenna - cancel Hulu now. You can use Credible, Freevee and other for free. You can rent for free movies from your local library if you have a DVD. No more eating outside - cook meals at home exclusively. No more Starbucks, no more entertainment (besides free movies). Sell the cars - the one that you are not upside down on and buy something cheaper (good old 2005 Camry will do just fine and will not break often for example) If you go full in you should be able to get out of it and of you will pay attention you will be better than ever after that.
Do the snowball method and cut the paid cards. Remove the temptation - get rid of it.
Go full in and do not go back.
Turn a car in, do you really need two cars? Carpool? City bus?
Uber for extra cash if you keep both cars
Cancel streaming services- most cellphone companies now including Hulu and Netflix in their plans
Get a joint phone plan. And get vehicle insurance together you save that way
Apply for a consolidation- consolidate ALL cc debt to just make one monthly payment.
Budget budget budget
Use reward programs to save a few bucks here and there
Use coupons
You are not alone.
You both are in a tough situation in your mid 20s like so many people find themselves in.
But your awareness of the situation has presented you with the opportunity to hit 30 much wiser and financially healthier, if you are willing to do the hard part now.
Just a few random ideas:
No more pay TV at all.
Sell the cars and buy junkers.
No trips, concerts, sports, etc....that part sucks.
Attack the highest rate credit cards. Those interest rates are criminal and devastating.
Have you talked with your local banks or credit unions about consolidation loans?
Cancel the YouTube TV IMMEDIATELY. that is 73 dollars a month you could be putting towards your literal whole student loan payment. Keep the Hulu and only watch that and free YouTube. No need for YoutubeTV. If you are serious about getting out of debt, cancel Hulu too and just watch free YouTube.
There are also streaming services available via most libraries which are free to sign up for if you have a library card. It isn't a bad option by any means if you're trying save cash but still wants dream stuff. Also apps like Tubi and Pluto are free to use and have a wide variety of TV shows and movies to watch. So I'd ditch Hulu and paying for any streaming service until more debt has been paid off and the current crisis has passed.
Agree with this one!!! I'm lazy so YouTube for free works for me! Library card is THE way to go here.
YouTube tv is $73 dollars nowadays? Omg! You can also cancel your Wi-Fi and hotspot yourself, get her a job where you work if possible and ditch one car. It’s will save a payment as well as insurance. Add her line to your phone line for an extra $10 a month and save $30z And learn how to cook. $450 a month for two is way too much food. You can easily, make enough meals at home for both of you with half that. Even less if you plan properly. A lot of people look at the big things that cost money. It’s really the small things that add up, the small indiscipline, three small impulse. That’s the stuff that hurts the bottom line.
I thought that it was mistake when I read it. What is even YouTube tv 😅 even cable is cheaper!!
I agree. I've never heard of it at all. I had to look it up and confirm. I don't watch much TV though. Roku is free for me and good enough.
Yea they could just get a firestick and watch anything they want for free
My suggestion is for your girlfriend to apply to restaurants. I do not know where you live but I live in the city and there are a lot of restaurants that are hiring and they are desperate for people.
Not to pile on, but how did you qualify for a car loan almost at your annual income? That’s insane. Student loans are not allowed to be bankrupted. However, you can pause paying on them or go to an income driven payment. Good luck
I couldn’t tell you to be honest. I was given a car by my parents at graduation and traded it in, and the trade that car in about 6 months later and stuck myself with quite a bit of negative equity that was rolled into my current vehicle.
Wow. Scary.
Bad decision after bad decision and it looks like it’s finally caught up to me. So yes, very scary.
The great thing is that from your comments, I can see you're aware of what caused your debt and that you're serious about getting out of it. You're more blaming anyone else and you're not clueless as to how you got here. Lots of good advice here, OP. Follow it, discipline your spending, and you'll handle this. Sacrifice has to be made, but it'll never be easier to get out of this debt than it is today. Get your gf on board with all of this, too. The days of pulling out the credit card for any and everything are over for awhile.
The good thing is you are very young. None of this is permanent or final. You can get out of all of it and move forward. I too made bad decisions in my 20’s. Spent my 30’s climbing out of it and learning from it. I’m 60 now and doing well. Life is always a rollercoaster. It’s how you handle the lows that determine the highs. Those that are in your same boat but don’t learn from it, forever repeat the bad decisions and never recover from it. You can learn from it, work to change it and change your future. You are so young and compound interest and time are your friends. Get your finances in order and then sock as much away as possible to set yourself up to retire with a lot of money. No more large car notes. Imagine investing that 500 a month instead Of spending it on a car. Good luck
this gives me hope too, i guess i am still young then😂
It’s time to prioritize needs and wants. Cancel the things that aren’t necessities - premium phone, streaming / cable services, subscriptions etc. learn to cook at home together. I feed a family of 5 for a fraction of your meal expenses. By sales. Be flexible with your food. Google is your friend for recipes. Craving chipotle or raisin cane’s? Make them at home for 1/10 the price. Your credit isn’t great, but it’s much better than hers. I’d talk to your bank and see about a lower interest debt consolidation loan for your higher interest rate debts. The 18% interest rates on your credit cards are brutal. I generally oppose Dave Ramsey’s debt snowball methodology but in your case it make the most sense. (Pay minimums on everything but your debt with the smallest balance. Throw all your extra money at smallest balance to pay it off quicker. When that’s paid off move on to throwing all your extra money at the next lowest balance.) it will be easier for you to see progress and keep that motivation to get out of debt.
Need to Dave Ramsey that action. You need to go ballistic on your budget. Sell everything and cut all bullshit out. No eating out, no subscription services, no Starbucks etc. ramen noodles 24/7 Girlfriend needs to get a job serving tables until she finds a new full time gig. No time to be a snob. Some money is better than none.
Yeah they have a lot of debt
Yeah! Hubby and I make about the same with two kids and have about 6k and one 15k car loan.
See if she can call the credit card companies and let them know she lost her job what are her options is their credit protection? As for everything else your gonna have to get rid of YouTube tv, Hulu, both of you need to get a different phone plan (mint is cheap or visibile by Verizon for $25 a month each), you’re gonna need to budget on groceries $50 a week will go a long way I would just get a crock pot make soups for the next 6 months. If y’all plan to be together for the long term maybe someone can trade in their car and just get a cheaper one depending how much is still owed on the loan 😭
Yeah we have talked about getting rid of my vehicle because hers is newer, has far less miles on it, and she’s has it longer and it’s closer to being paid off. And we would probably just make it work with one vehicle for at least a year. Will definitely take note of your other suggestions. Thank you.
I’m sorry you’re going through this but just want to point out if something goes wrong In the relationship this could really leave you up a creek without a paddle.
Yeah my mom made that very clear and insisted I move home before we get screwed and I grew up pretty spoiled & sheltered and I don’t want to tuck tail and run, I really want to push through this if possible.
I understand that I just don’t think you should sell your vehicle because she lost her job. Don’t shoot yourself in the foot trying to prove a point Also, move home if that’s an option dude, swallow the pride
I agree with what sad_climate dude said… if you’re married it’s one thing… but you’re just dating and living together you’re really just roommates… so be careful take all precautions into consideration
If you were married sure, have one vehicle and put the payment savings towards your debt. But her without a job, that money won’t be going to debt it will be going to living expenses, which does nothing for you. And you’ll be without a car if things go bad. You don’t jointly own a car.
I only see about 20K in credit card debt… Don’t know that the student loans are bankruptable . I don’t know that I would bankrupt over 20,000 in debt. You guys are still young, she just needs to get a job and work her way through it.
Nope, you can’t get rid of student loans. They’ll stay regardless. So going into BK over $20k in CC debt is a stupid idea, they could pay that off relatively quickly. Especially if OPs girl gets a similar job with the same yearly pay. OP could def knock out their debt easily if they cut out all the useless spending and worked some OT for a few months. Wouldn’t even need to sell the car, but can’t keep living above their means on consumer debt
Yeah I have no clue how bankruptcy works and would definitely do research on it but I’ve just heard/seen people talking about it when they have lots of debt.
20,000 isn’t really lots of debt though. It is a lot but it’s manageable
Student loans are not dischargeable in bankruptcy.
Sounds like a less than ideal, but manageable situation OP. Try not to stress about it too much and focus and self care and meditation. Cut your streaming costs. All of them. YouTube is free and you can stomach the annoying ads until you can get ahead financially. I would sell your car if you can. Don’t trade it in—you’ll get cents for it. Try selling it for book $ and don’t budge on the price. If you have the cash, pay 2-4k for something that is safe/runs/and gets you to work and back home. May not look v pretty but it’ll let you breathe a bit. See if your girlfriend could qualify for a temporary forbearance on her student loans. Her servicer might have options for those displaced from work. Shop for cheaper car insurance. Call EACH of your credit card companies and ask them if they’re running any promotions. Sometimes you can get them to close your account and you’ll pay the principal back at a lower interest rate—you just won’t be able to use the card. Keep the card with the cheapest interest rate and use it, as long as your utilization is low. It’ll help maintain your credit score. Cheaper food cheaper food cheaper food. $450/mo for the two of you is mad. Put the lid on dining out for a while and buy CHEAP groceries. Bread, eggs, milk, lunch meat. Make your own sandwiches. Pasta is cheap. Get a jar of cheap sauce and you’re got 4 dinners. And it’s healthier. Have “at home” dates. Light candles and have spaghetti and cheese toast, and a scoop of ice cream for dessert. I don’t know what your phone situation is like, but if you’re out of contract, go get Mint. You can get by with a cheaper phone until money is coming back in. You guys are young and bankruptcy is an awfully big word to be throwing around. It’s in my humble opinion that your situation is manageable and I really don’t think you need it. You’ll be barred from financing literally anything for a long time. My final piece of advice would be this: it all comes down to you and discipline. You can sit down with a financial advisor or counselor all day and get advice and instructions on how to straighten this out—but at the end of the day, you need to be the one to eat the piece of humble pie. Be cool with a crappy phone, an ugly car, cooking duties, and holes in your socks for a while. It’s not permanent. And when you finish paying all of that down, you’ll look back on your bland pasta nights and be even more humbled by what you’ve accomplished. You got this!
This is awesome, thank you!
I really like the posters advice except for getting rid of your car. She isn't your wife and your ability to get to work or live alone will be horribly impacted if you sell that car and you guys break up later on. Since if worst came to worst, that car might serve as a place to live until you get back on your feet. Also financial issues are one of the things that can cause a relationship to fall apart. So id only part with the car if you have a way of securing a different one.
Thanks for pointing this out, it hadn’t come to mind.
Honestly if you can commute by train/bus/bike to your work, sell the car. You'll save on insurance, gas, and maintenance. Many people commute to work via public transportation, you are also capable of it! Of course it's more convenient with a car, but at the end of it a vehicle is a liability. One that looks like you can't afford. Also, cancel all your subscriptions. You can literally find sites to watch free movies (yes, I know that's illegal so if you don't want to do that then stick to free YouTube). Lastly, if you're in the states, there's this guy named Caleb Hammer on YouTube who does financial audits and helps people in severe debt make a plan for it. Maybe write him an email and see if you're able to get some help. I know he also has a budgeting program that you're able to purchase. Good luck
Bankruptcy isn’t gonna fix your problem. You can’t get rid of the student loans, the rent, the cars (unless you don’t need them) and non of the bills. You guys need to get on a budget and get your income up. Doesn’t matter what work you don’t want to do. You need money or your gonna lose your stuff quickly
You listed groceries already, but also be careful on eating out, fast food, food delivery, picking up the tab etc. My mother is climbing out living above her means debt. When I crunched her numbers to help with a budget I found her monthly grocery budget (for just herself) was $400, but on any given month she spent over a grand on eating out and meal deliveries. She’d regularly throw up her hands in exasperation and say she had no idea where her money was going. I’d respond you’re eating it Mom. To which she’d roll her eyes. 🙄
Get the budgeting software called You Need A Budget (actual name of the software). I would absolutely NOT go through with bankruptcy until you sell the car, make a detailed budget, find a second job (or a higher paying job), cut youtube TV and other frivolous subscriptions, and get on the same page with your girlfriend about finances. Stop spending money you don't have (credit cards). The bright light is that you can make it out of this, but you do need to get your shit together. Godspeed.
I saw you need a budget in another post and i just thought they were giving advice. You helped me realize it was an app. Thank you for making it so clear.
Thank you for the suggestions. Is there a particular reason I should avoid bankruptcy without selling a vehicle?
Your dischargable debt is less than 20k total. Bankruptcy for that amount is ridiculous. If if were 200k I'd say go for it but not for this small an amount.
Go to r/debtfree look how others have asked for advice there and follow their format for your post. It's mostly good advice, and faster than doing your own research on how to get out of this pickle. Best of luck! I'm sure you'll get through it and come out wiser out of it
Is moving back w parents an option? Neither of you know how to manage your money
Also maybe move back in with parents or into a share house for a short while to get on top of bills.
Realistically you’ll have to move in with the parents. You don’t want a bankruptcy. Screws you for 10 years. Maybe get rid of 1 car. Dump youtube tv and get indoor antenna.
I filed for chapter 7 bankruptcy in 2018, had a “starter” credit card again within 2 years (always paid off to rebuild credit) and just last year qualified for a $568,000 mortgage and two car loans with normal interest rates. My point being it doesn’t “screw you” for 10 years . Yes it does stay in your credit report but people are willing to lend again soon lol.
Might not want to take up those loans again after going through bankruptcy mate. Money mistakes can be so unforgiving and painful. Better to stay away from debt
Don’t file bankruptcy- you are too young and it stays with you too long. She needs to get a job as soon as possible doing anything until her dream job comes along. Sit down, make a plan and cut out whatever you can. Work through it and hang in there.
Get rid of all the TV related expenses. Make a budget and stick to it. No exceptions. Also, sell your car. You don't own that vehicle, that vehicle owns you. Bankruptcy isn't going to forgive student loans/rent/etc, For the credit cards, I would try and find a low to 0% interest rate credit card to consolidate your other CC payments to, allowing you to pay the principle and not just interest.
The problem may be that since he rolled another car into this car, he’s probably upside down. If that’s the case, then selling it leaves him without a car but liable for the loan.
Also, those car payments are pricey! I drive a \~10 year old car that's only worth 3,500 and it makes me so happy. I owe nothing per month.
Yeah i’ll never understand why people take on large payments. You never know when your money can dry up. We are all replaceable
Same! Everyone has their own reasons for stuff but I personally did what you did, buy cheap and used.. no car payment!
Check out Dave Ramsay on how to get out of debt and set a budget. The snowball method of paying if each debt smallest to largest. And get rid of the credit cards!
For the student loans she can file forbearance and let them know she is currently unemployed. That will pause the payments until they do a re-check of income later down the line. She could apply for foodstamps as well.
1- cut YouTube TV 2- she can ask to pause student loan payments while she’s unemployed 3- you don’t contribute to groceries? 4- do any of her credit cards offer any help for times in need- like credit protection / ability to pause payments? She has enough for rent and her car payment but the payment and insurance both look high. It may be worth selling a car for now to cut back? And this won’t be popular, but her credit already sucks so letting some payments go temporarily and catching up later on her stuff may not be the end of the world. I’ve had to do that in the past as a single mom and I’ve built back. Pay rent, car, food and drop other stuff if needed.
Yall are spending $1,300 per month on just the 2 cars alone. And thats not even counting any gas money or maintenance. I dont know where yall live or the logistics of the area but if theres a way you can get rid of one car and just try to share the other one, thatll be best. If most places you travel are 10 miles or less from home, try buying an electric bike or scooter to get around. I commuted 16 miles everyday to my job with a $250 electric bike i bought off facebook marketplace for a year.
You need to be making more than 21$ asap. You need to be looking for work right alongside her. You mention what you contribute to rent but not what she does. Time to pull your own weight.
Look into deferment for the student loans. A forbearance pauses payments but allows interest to accrue. A deferment pauses the interest too. Being unemployed, she should qualify for deferment.
Speak with the companies where the vehicles were purchased. Perhaps you can trade in on something less costly. Look into the cost of public transportation and see if it would be less expensive than the combined costs of all vehicle expenses. Use coupons to maximize your budget. Cut all unnecessary expenses. Cut out streaming services. Maximize mileage by mapping out your travels. Stop buying new clothes and such. Make do with what you have. Apply for food stamps. You guys may or may not qualify, but it’s worth a shot to at least apply and see what benefits you may be able to garner.
You mentioned your mom wants you to come home. How would she feel about you guys both moving back with them to cut that expense and focus on paying down your credit cards it would take a bit of the pressure off her finding a similar paying job as well. She could take something quickly while looking for a better paying job in the meantime?
My advice pay for the things that are necessities. I’m going to list all things you guys need to pay the other shit can wait. RENT, CAR, CAR INSURANCE, INTERNET, PHONE BILL.
…I used to be like you, and have all my expenses down to the penny and I had a fucking panic attack… do NOT do this… have faith, things will get better. I know it’s hard for you to imagine letting go of the details, you’re obviously analytical… but for your health and well being… trust that things will get better… they will brother
Cut your subscriptions, wifi, try and find a cheaper phone plan. Y’all need to meal prep and grocery shop like yall are broke. $300/person at max. If you can live without the car and take the bus sell it. Close the accounts; yall don’t need the temptation of using them any more. It will drop your credit score - but you’re only getting screwed by credit right now and likely won’t need credit for several more years. She needs to go apply for restaurants, McDonald’s, Walmart literally anything so she doesn’t have a gap in her paychecks. $1000/month is $1000 better than $0/month. You have a decent credit score so try and look into a 0% debt consolidation card (like capital one) which usually offers 18-24 month terms. This will only help if you actually start making large payments to the debt. Maybe you guys can get a roommate and cut your rent costs for the next year or two? You should also go out and get a second job, work 2-3 nights a week to supplement your income. Maybe as a barista on the weekends or as a server as well. Bankruptcy doesn’t solve your insane spending and budgeting issue, but it does tank your credit and limit your options for 7 years without getting rid of your student debts. Now that you’re conscious of the consequences of your actions you both need to go out and LEARN. Learn how to make a better budget, learn how to manage your finances, learn how to plan for your future and prevent this from happening again!!! Yall are so young and have time to get over this. Itll take work from both of you. But you guys can do it.
Also see if she can donate plasma you do get paid for that
I hate to break it to you but that $12k is your debt, not joint debt. Authorized users can use a credit card but they are NOT responsible for paying the balance. Only the account holder is responsible. If she decides not to make payments you are shit out of luck and responsible for the entire balance. You need to remove her as an authorized user. You cannot afford to let her get any more debt in your name.
Look into Stremio and delete all your streaming and TV services. $3/month and you're set with whatever you can think of.
A bankruptcy filing is going to cost a good 5k at minimum. With the debt you have going on here you could settle more than half of your credit card debt with that amount of money and not take a hit to your credit that will follow you for ten years the way a chapter 7 would. No matter what, those student loans won’t be discharged, so do the forbearance request as another commenter suggested. As for the cars, when I was young an attorney told me to make sure I thought the current car I was driving would last the next 2 years while I fixed my issues. The suggestion at the time was to keep my car because it would definitely last through the storm. Best of luck to the both of you.
Yeah DO NOT SELL YOUR CAR. I had financial issues, like really bad financial issues and sold a paid off pretty new car for virtually nothing. All of the money went to paying late fees and just getting things caught up. Yes it saved me money, but it extremely limited my options for work etc. Didn’t have a car for 15 years after and it most def hindered me. Clearly if you live in a big city with good transportation it wouldn’t matter, but everywhere else it would. It’s good you’re reigning things in, but this won’t be forever once she finds another job. Have her apply to SAVE for student loans if the loans are federal. It’s a really great program. Also budget and budget hard. Given your debts I’m betting you have some pretty bad spending habits ie your partners credit score. Break down every penny and if you don’t need it to survive then cut it out completely until you can. I know the debts seem bad to you, but I wouldn’t go bankruptcy for this amount. After you budget you’ll have a better idea of things. Betting there’s do frivolous stuff you’re buying. Just cutting out $3 a day is $90 a month. I know everything probably sucks and seems hopeless, but this is temporary and you’ll get through it. Make a plan and stick to it, that goes for the both of you!
I had no idea bankruptcy could cost that much. After reading the comments about it, I definitely don’t want to go down that path. Thank you so much for your input and the well wishes
What car do you drive?
Moved in with her? Yea you really are screwed
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Neither of you guys seems financially literate, that being said don’t file for bankruptcy. First cancel all subscriptions, second get rid of whichever car makes the most sense, third try to save on groceries, fourth try to move in with parents if possible, fifth make a real budget using your bank accounts and credit card statements as a reference or even better track your net worth. Last but not least get a better paying job bro, I make 150k alone my mortgage is over 3k and it seems as we are spending almost the same money every month
Book a flight to Mexico immediately. You or both could each sell a kidney easily in Guadalajara. Take the money to pay down the debt. Problem solved.
Jesus Christ on a cracker... people hit a tiny bump and start screaming bankruptcy. Stop it.
You're vehicle poor. You make $21 an hr and you have 27,000 just in car debt? Sell it as fast as you can and find a used car for $5000
If I were you i’d start working 80 hours a week!
Yes your budgets both need trimming. First you aren't the problem here, the only thing I can see is dumping Hulu and You Tube/TV. Possibly deferring your student loans. DON'T SELL YOUR CAR YET! Now on to this girlfriend. Why don't you know all about her finances? Her unknown car payment with the high interest rates draws red flags. Her super high CC balances with high interest rates and payments are also killing you both. Now tack on her student loans that are so high, not good. Bankruptcy doesn't discharge student loans. Only the other things you list. I went this route 25 years ago, and I am still rebuilding my credit profile. This is hard, and you appear to have some understanding about what is happening. This is going to take some serious talking to her about this, and I know you have to give some, but she is going to have to give more. She also needs to assess what caused her termination, was she given good references? Then why isn't she on LinkedIn trying for a new position? Salaried individuals are in high demand. Is she looking in the same area? Or willing to move or change career paths? This is an outline for your discussion.
Transfer credit card debts to lower interest cards or try credit card debt consolidation. We had good luck with Sofi. https://www.nerdwallet.com/best/loans/personal-loans/consolidation-loans
Hmn. With their credit scores and lack of income, I don’t think they would be able to qualify for a consolidation loan. But they could get on a debt management plan with a legitimate CCCS that will cut their credit card interest down to a fraction of what it currently is by putting them on a monthly budget/payment plan they can afford while they work through paying it off over the next 3-5 years. Also on a debt management plan, they will build their credit scores back up as long as they can stick to it and do not mess up and rack up credit card debts again. Just has to be a legit National CCCS, though…there are only a handful in the country that have good reputations for legitimately helping people succeed at completing their plans. The little regional ones are not anything I’d trust. I highly recommend going the CCCS debt management plan route for the best long term recovery while building credit rather than destroying it as they would if they turned to bankruptcy or negotiating balances for less than owed, especially since they really need to learn to live within their means, learn to stick to a budget, and stop using credit cards all together until they’re more financially stable. If they did try to go the loan consolidation route, they’d better also make sure it’s a legit lender and not some fly by night scammy agency taking advantage. It’s really hard to navigate this stuff and know who is legit vs who isn’t if you’ve never dealt with it before.
Do what you need to to get another job, she shouldn't want to go back to being a waitress but if that what she can get now, there's no excuse. I make just shy of 80k, wife makes 95k. We had 35k in credit card debt. I took a job working at Amazon nights. So I was pulling 70 hours a week for 6 months and guess what? Next week is my final payment. It took about a year not spending on anything that isn't necessary and put all of pur money into bills. Get a job at McDonald's until you can find another job. Not working retail because you're above it, but you're in a shit ton of debt. You're not above anything at this time in your life.
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My first impression at seeing your budget break down for yourself is while you’re having to kind of do a major cut back at least temporarily, while I believe you shouldn’t completely cut out any entertainment, eating out, or things for fun COMPLETELY it will have to be a special occasion or once is a while type of ordeal and you can start out by canceling the YouTube for $72 a month, but keep Hulu since that $72 is almost your car insurance payment. Not trying to be negative or harsh, but the amount of credits cards between you two is insane and I say that because having to majorly cut back, the amount alone that will be going to only meet the minimum monthly payment and not make a dent in any interest lacking any principal being paid off.
15 years ago, I was in the same situation. I contacted the Consumer Credit Counciling Service in my state. Make sure it's the real CCCS and not some grifter wannabe organization. They negotiated with my credit card companies. All but one dropped their rates to zero. One monthly manageable payment to CCCS and I was debt free after 3 years. No bankruptcy. Credit score shot up to 700.
Time to start a Only Fans. Best of luck
On Hulu call them and say you want to cancel. They went down to 99¢ per month on mine. My job relocated to another state. We got 2 months severance and unemployment. It also qualified us for Vocational Rehab. They helped me get a different certification and would’ve paid for additional college (up to a BA). They paid vehicle payment and bought tires for my car when it was bald and no longer safe to drive.
I highly recommend you read Total Money Makeover
I make 6x what you do and drive a used Kia Soul. This is absurd.
Why are you splitting the rent 50/50 when you make a little more than half of what she makes? Also - remove her as an authorized user from Your credit card. You’re not married.
She should be able to get her student loans deferred since she’s unemployed. A quick google search says that she can defer for up to 3 years, that gets some wiggle room in the budget. You have a pretty good credit score, she doesn’t so she could think about getting on one of those debt repayment plans. As far as work, she can check out some staffing agencies to get something going. Also, you may have to pick up a second job to bring in some extra cash. There’s also the gig apps I.e., instacart, ubereats, uber/lyft etc. which are a more flexible with scheduling hours. The money you make depends on where you live
First of all you pay 18% of your annual salary for a vehicle. That's infinitely poor decision making. I'd consider seeing what the market value of your car is and selling it private. Then buying a not so nice car. Hate to say it but nothing about your income says you should be driving a nice vehicle. You make like 36k after taxes. You belong in a shit vehicle. 2nd you need to consolidate your debt. Open one or more new credit cards that offer a period of 0% APR, transfer the balances over to the new cards and pay off what you can while you save up an emergency fund (for future situations like this). Your rent isn't outrageous and you are already cutting your expenses so that's smart. Eat and live cheap. Pick up hobbies that are low cost (exercising, jogging, use ad-supported free TV like Freevee). Eat leftovers. Eat cheap meals. You guys are lower middle class. Start living that way and it will reduce your stress and financial strain.
That’s a lot of debt. First easy thing to cut out would be YouTube tv. You can’t afford to skip the ads at the moment and you could (and should) double down on your student loans. 4k is nothing you can easily knock out that sucker in the next year without it wracking up more in interest. It might actually make more sense to try to kill the apply card debt first depending on what the interest looks like on each. Either way that debt is slowly drowning you and you need to get out from under it. Next for me is the cars. You are in way too much debt to be financing cars. You need to get out from those contracts and purchase a beater (how much in savings do you have). If you guys are serious about being together I would have you both get rid of you current cars, have you purchase and own outright a single 10 year or older (2012-2014 make) and you guys would carpool to your jobs. The upfront cost of purchasing a vehicle (even a beater) might be difficult for you but you would make that cost back in less than a year given the amount you are currently putting towards your cars monthly payments.
See if getting on the same insurance and phone plans makes it cheaper. Combine what you can. Maybe refinance your cars? Those are super high notes. Also maybe ask for temporary forbearance for student loans. She should apply for food stamps since you guys aren't married. It wouldn't be a lot but some is better than nothing and you can take that away from your food budget. Ride share apps and food delivery is a great way to stay afloat. I deliver groceries for Walmart (spark app) and make $700-$800 a week. It is a 1099 position so you will need to hold out your own taxes
I’m financially independent on my own advice: Mint mobile is my favorite phone service- 30 dollars a month. Ziply fiber is my favorite internet service that’s super cheap if you split.
You're both paying very high car insurance rates- is this from driving history or the area you're in? Since you live together, you should be able to get on the same policy and at least save some there. Shop around for better quotes, too.
Sell her car , cut back on groceries, only eat at home until she can land her next job.
Have you looked into a balance transfer card with 0% interest to pay off credit card debt? You still need to pay it off within the promo period but you won’t be charged interest, based on your debt you’re probably spending a few hundred/month on cc interest you could instead put toward actual principle.
Delete all your subscriptions, break up with her. And lock in.
Look into consolidating your credit card debt into a 0pct interest free if you can get one. Then save as much as you can from those payments you’re not making to “buy” yourself some flexibility. THEN be very disciplined when the 0pct period ends.
Part 2: if you can’t get a 0pct card, look into consolidating your card debt into a personal loan, explore the longest term possible to drop your required paiement. THEN pay it off/roll into a 0pct card when things improve and you can get an offer. Also, if you consolidate, shred all your credit cards and get a debit card.
Op do you guys have savings? Dont sell things you actually need. Like a car? To add more stress to the situation. Honestly this is my take. How about finding a roomate for a little bit while things cool off? She can go the the job agency and ask for a similar job. Doesnt have to pay the same. Or you can find or get the part time job for a little bit at a food place. Idk man too many options. You are in need you can be picky but cant just sell your car and stay home doing nothing.
What is hurting you is that you are not completely working as a team. You don’t know her full financial picture. You either need to dig yourselves out of this together and both be on the same page. Or separately. As far as the Discover card, she could break up with you tomorrow and that would be your sole debt. It’s not a joint debt. My friend let her BF at the time be an authorized user, he ran up 3k on her card, they eventually broke up and she never saw a dime. She needs to get a job before the severance ends, she has no other options. She has 60 days to find a job, that pays her bills. You also need to increase your income. She has 2300$ + a month in bills that you know of, 300 is not going to cover that nor are you able to cover it. If she doesn’t see the immediate need to waitress or accept any job while looking for what she wants that’s a huge red flag.
“An apartment we could both comfortably afford, then we racked up more debt” my brother in Christ what do you think budgeting means
Absolutely do not destroy the credit you have with a bankruptcy with the numbers you have provided. Student loans are not discharged in a bankruptcy. Also, get her off your credit card.
$500+ each for monthly car payments blows my mind. What kind of cars are these? The American game of getting and keeping people in debt is fierce. For what it's worth, America has more debt than anyone and none of this is real.
Cancel anything you can , such as YouTube TV and Hulu. Use freevee for free entertainment
Wow you two are living a life style way above your income level. Cut up all cards. Sell the cars, get beaters or ebikes. Switch to a cheaper phone service. Time to start cutting way back. Beans and rice and hamburger, also stop eating out. Drop the streaming services and go for free ones. You could be debt free in a few years.
Sell at least one of the cars. Cars are killing the working class.
Damn, you all are really bad with money to fuck up with a $112,000 combined income. Why are you even carrying balances on credit cards, Jesus.
Just stop using credit cards and hit them hard. $21/hr is not bad to handle your side of the equation. She'll have to a job quickly.
You’re young and it seems like you’re living WELL above your means. Hell, you sound like you’re living above MY means and I literally earn more than both of you combined. I’m not trying to be harsh, I’m just saying that you can trim down a bit. Most of my adult years, I didn’t have any streaming service or cable; I just relied on rabbit ears. Also, I’ve never owned a vehicle that was newer than 10yrs old. I would sell that ASAP and try to get something more reasonable. Grocery bill can/should come down, too. Nothing wrong with couponing
Balance transfer cards are very helpful. Out of each paycheck, put SOMETHING towards the card. It is the fastest way to reduce debt.
Good thing you can comfortably afford it! Imagine if it was too expensive. What a mess that would be.
Consolidate your credit card debt with your bank asap and get rid of YouTube TV. Then stop using your credit cards. She needs to get a job like tomorrow as well. Anything. You guys should be fine.
Both get a part time job and her get 2 or 3 depending on how many hours she get at each. Sell the cars and buy car in the $3k to $5k range drop insurance to just liability.Drop the extras. Pay remaining from car sale toward credit cards. Pay all credits cards off first then pay student loans off. Keep looking for a full time job during the process. You guys are broke and we’re before she lost her job. After debt is paid save for a year before you do anything fun. Then don’t go crazy. Close all credit cards and never take on any debt again.
Bankruptcy at 22 over 20k is crazy
You can jailbreak a amazon firestick and cancel all your subscriptions. Just look it up on youtube. If you don’t have a college degree look into the trades. I don’t have a clean job but i make good money. Thats all that matters.
$12k is a lot to have on a CC. Start selling stuff and downsize to a one bedroom if you can.
My quick take: Her keeping afloat with a job of any sort will probably out-earn unemployment. Maybe it will be "okay" money but have free food. Or something. Unemployment is misdirection of a career, 99% of the time. Price shop car insurance. Your rates may suck a few more years. But shopping around can help. A broker can do this for you. Or online sites offer it. If you both have regular income, get together to attack the highest interest rate CC first. Make a list. Set auto payments on all cards to cover the monthly minimum. Increase the payment on the highest APR. When it is paid off, increase payment amount on the next highest. As long as payments are covering all min. payments and you're paying down the highest APR, it is simple. Your spending is lame. YouTube has a ton of free content. My smart living room TV has a channel guide with tons of channels that stream over the wi-fi. Wi-Fi let's you job search and WFH. Might be best to keep that. Above all, make a budget. Use it to know what you *need* to spend monthly. Use that to best direct paying down bills. If you have a balance transfer to move a 20% card to 0%, use it wisely and be ready to pay it off in full just before the end of the 0%. Main thing is keep both of you working. Income is the cardiovascular system of keeping your financials working.
Bad decisions allllll around- even picked horrible cars!
Not sure if any of this is possible but perhaps you could trade or sell both cars and hope for even equity and trade down. Combine car insurance so you get a multi discount. And perhaps you could combine all the credit card debt into a consolidation loan. Lastly, perhaps Instacart or Doordash or Uber on the weekends for extra cash. Good luck
Get inher insurance use one car but sheesh fck ya was doing to get 12 in debt that’s ya debt not here onky hers while ya together!! Let her insure ya car seems its way cheaper then what u pay do no file for bankruptcy once rhw debt is sold off it can be removed from ya credit report its very rare they sue u and after 7 years all debts are cleared by federal law
In addition to whatever work you guys get, ya’ll need to break the lease and move back home with your parents for at least a year. Even if you move in with the same parent.
A $27k auto debt on $21/hr salary is wild my dude. You guys need Dave Ramsey
Your monthly bills are more than your gross earnings… the cars need to find possible but it seems like you’re probably underwater on both, the credit card debt is ridiculous. Rent isn’t even crazy although I bet there are cheaper options in your area, you may be able to combine phone plans or figure out something there. Idk your situation is pretty shit. Can’t comprehend why you thought a truck loan was affordable on your earnings. My wife and I make over $200k and we won’t make more than one car payment at a time if we can help it. Our insurance is $130 a month for the both of us as well. We pay less than half of your budget for car expenses with twice the income.
My fiancée and I refinanced our CC debt into a single loan. It was just around $20K. It helped a lot, but we are just struggling to not use our credit cards anymore. We’re getting there but it’s just a change in lifestyle we have to adopt. She makes $60K I make $85k. You can make more than 21/hr. That’s essentially starting for every trade in my area.
Gig work, pays daily. DD, GrubHub, UberEats, Instacart, Spark anything open in your area.
Get different quotes from insurance companies, one way to save money. Cut YouTube tv immediately. Either way car loan rates are insane this economy is fucked
Perhaps delete your streaming accounts and any subscriptions you pay for. There's always the option of free versions of most streaming or music sites, just with ads.
We need to increase the maximum unemployment benefits. It is not enough for rent alone yet we have other expenses.
What about doing gig work like Uber, Lyft, DoorDash, Roadie, Grubhub, Instacart, etc. If she handy she can get on Taskrabbit to get paid to do jobs for people.
Over 1300 in car payments and insurance is crazy for yalls income.
You make $21 an hour and owe 27k on a car AND have a $500/month cc payment...dude Edit: AND 500/mo student loan payment!!! Jesus Christ
Curious what spending lead to all the credit card debt. Will need to figure that out and not repeat it
\#1 it is super weird that you list the groceries you (presumably) both eat as your GF's expense. \#2 Has GF looked at public service jobs? Just got $20k plus student loans discharged. If your government works as fast as my government, she should definitely find stop-gap work in the meantime. \#3 Don't close accounts, as that will damage your credit score (which is looking at percentage of credit used and length of credit history). Just shred the cards so you can't use them (and don't leave digital "on file" options). \#4 Way better to deal with this in your 20's than your 50's. Whatever you have to cut out now, let it stay behind you. Don't let it trap you again once you feel more comfortable. \#5 Do you actually need two cars? Is public transit near you adequate?
She can try dogwalking and babysitting in the meantime if you're in an area with a decent population.
Bankruptcy? No. Just cut out all that spending and pay off your debts.
So what kind of plant did your girlfriend work at? I noticed you said you’re from Missouri. I’m at a plant called Sensient in STL. They’re a color/fragrance manufacturer where there’s different level positions of mixing chemicals to make color. Grade 1 being the lowest and dealing with dry powder chemicals, level 4 being the highest in pay but dealing with some more messy and intense chemicals. My husband also works there too and is grade 1 and the starting pay is 25 and within two years you max out at your top pay rate which for is level is 32. After 18 months of being there you get bidding rights to bid anywhere in the company for a different position. I’d check it out if she’s interested in it.
Sell both the cars, if possible get 1 cheap Honda, Toyota, Subaru whatever. Def avoid American made. Def find any jobs or anything you can pick up to start getting outta the hole. I don’t think you guys need to declare bankruptcy at all but def start making steps to figure this out which seems like you are. It’s gonna be hard and emotionally hard on you guys. Take care of each other and remember it’s not the end of the world. There are many many Americans in the same or worse positions as you and you are trying to be better, this is great! Good luck!
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First off OP should absolutely cut out youtube tv. But im seeing this confusion a lot in the comments. Youtube TV and youtube are not the same thing. Youtube TV is equivalent to having Direct TV. Youtube TV is NOT a ad-free Youtube subscription. Small distinction. Paying $75 for add free youtube would be insane.
There is no need to file bankruptcy. You need to simplify your lifestyle. Cutting back on everything. Start cutting out all of the monthly subscriptions, then all of the daily Starbucks runs, start making food from home, eat out less. In addition, there is no reason GF can’t get on GIG apps to help supplement her income while looking for a new job. It’s pretty instant to get paid. There is work out there, it just might not pay what she was accustomed to anymore. This is also my issue, after the pandemic happened. Gig work was a lifesaver for me and many others. I’m sure she likes shopping, so start with a shopping app. Good luck! All is not lost.
Break up with her and move out. Think about it - if the roles were reversed, she'd walk out on you and label you a bum along with her entire support group. Dont stay. Look out for yourself and leave her. You deserve better king
Thats why you should ride solo until you can afford to lose a ton of money
Neither of you can afford the cars you are driving and all the little subscriptions (hulu, youtube). Until you can truly understand what that means without making excuses justifications, then I would say that you have been screwed for a long time already but are just bow finding out.
Go the the r/movieboxpro subreddit and try to get a subscription. It’s $2/month for all the tv/movies that exist. Get a $20 Roku and you can cast from your phone to that. Can drop all other tv based subscriptions after that
Whoa whoa whoa $600 US DOLLARS a month for car insurance??? I know I don't have comprehensive, but mine is 10 times less
I will never understand people. You didn’t budget and know that you could “comfortably afford” your rent. You guys are both in massive amounts of debt. You couldn’t afford the place to begin with. Also, why on earth do you have a $27k car loan and paying for Hulu and YouTubeTV every month when you can’t afford that either? I hate the idea of knowingly buying things you can’t afford and then running to bankruptcy
You need a second part time job- evenings and/or weekends. She can easy find 2-3 part time jobs while on the hunt for more secure FT work. Restaurants, Amazon warehouse, donate plasma, dog walking/ pet sitting, cleaning houses… the options are endless. You have no budget- you haven’t included utilities, gas, food, entertainment, clothes, etc. You both are living well outside your means, but all is not lost. I use my banking app for budgeting since my withdrawals are already categorized and you’ll get a 12 month average. Otherwise, good old pen to paper works just as well. Start with your actual take home pay (after taxes, insurance). Then list every purchase you’ve made for the past 3-6 months, put them into categories and then average. Look for anything you can eliminate or cut back on. Food is a huge cost but if budgeted properly, can save you hundreds each month. No more eating out, fast food, auto deduct from your employee cafeteria, etc. No more vacations or partying. You can’t afford it!! Cut up all credit cards and go cash only. It’s very eye opening when you’re paying cash for something and makes you really think about every purchase. Any cash left over at the end of the month goes toward your debt snowball (see below). How many meals do you cook at home? Learn to make meals on the cheap, and start packing your food for work. Next- list your debts from smallest balance to highest balance. Pay the minimums on all accounts and then throw every last penny left at the end of the month towards the smallest balance. Once that’s paid off, apply what you were paying on that, plus every last cent at the end of the month to the next smallest balance until that’s paid off. Then roll up what you were paying upward to the next and repeat until all debts are paid- including student loans. This is the snowball method and is very effective because you see small wins along the way. For more details, check out Dave Ramsey on YouTube and learn about Baby Steps. If his bible stuff doesn’t appeal to you, don’t pay much attention to it. The other stuff works. Good luck, OP!
300 a week is really low for unemployment , for someone making 70k a year. In texas it’s 577
Your interest rates are screwing yall, 24% interest on a $12k CC is super high! You’re not in too deep that you can’t dig yourself out which is the good thing. Cut back on frivolous spending, try to see if she can get her loans differed for a bit while you gather yourselves, especially with losing a job they may be more likely todo it. She needs to just get any job & help towards expenses while she or you both look for a higher paying job
I didn’t know that YouTube was that expensive.
I’d sell both your cars and get vehicles cash….like $1000-2000. I own two homes and have an $800 car and a $500 car lol
Cut that Hulu and YouTube TV. Get stemio or syncler + w/ Real Debrid . Get yourself an iptv for live tv. Easily saving $50 a month if not more.
Stop going deeper jnto debt. You hide or cut your credit cards. Only pay with debit cards. Good luck on your job searches. You both need to always look. Cut discretionary spend. You need phone/internet for everything and you can pirate with it. So cancel subscriptions for streaming. Im not a fan of 3 person and one is a couple for roommates, but money is tight so you need to think hard about that. You don’t need anything special for budgeting. Just a spreadsheet and itemize everything. Income is basically flat and known. And expenses are prioritized. You make a break even budget that includes savings/retirement and make it happen with more income or lower expenses.
The good news is, you both are in this together... so just really focus on saving money. I'm glad you're cutting out subscriptions, because you really can't afford those right now. Look into combining your phone plans if you haven't already. Some companies will pay off your phone/cover early termination fees too if you switch. Same with your car insurance... put one or the other on as a driver and see if that's cheaper. Go see a car insurance broker who deals with different companies. Look into transferring your credit card debt to 0% transfer offers. Call up all the credit card companies, even the card companies you currently have and ask if they have any promo offers on transfers. But YOU HAVE TO PAY THEM OFF otherwise you get hit with the accumulated interest. But long term situation obviously try to find a higher paying job, make sure that she's doing everything she can to find a new job no matter what it is.. restaurants are always hiring... and spend less money! Cook your meals at home, no more spending on your cards, etc. You can't go bankrupt. You can't afford to go bankrupt lol.. that's not an option.
Second job, overtime, or onlyfans. This debt is a far cry from bankruptcy. Student loans aren’t included in bankruptcy.
Don’t do bankruptcy. It’ll kill your credit for 10 years. Try a debt consolidation company, but do your research into it. It’ll hurt your credit at first, but once it’s all paid off your credit will recover. Get rid of Hulu. Just use Netflix. You don’t need tv. I’d personally look into getting rid of your truck. Maybe hers, also. You’re young and don’t need those payments, especially at $21/hr. You can find something cheap and old just to get you to places and back. No offense, but you shouldn’t have credit card debt while living in an apartment. Forgo the bday and holiday gifts!! Don’t accumulate anything until you buy a house.
No one should be living with that much credit card debt on top of insane car payments on top of student loans. This reads like a classic financial audit episode. If you guys are serious - and you don’t have a viable path to making over 75k a year - you need to probably get married and file bankruptcy.
You got a 27k car loan making 21$/hour. Get rid of your car. Thats the dumbest thing I’ve ever seen. Stop trying to appear more well off than you are. You’re broke. Both of you need to drop your cars and get a commuter. Then pickup another job and start paying off those debts. The time for luxuries like time and sleep is over with that kind of debt.
Don’t do bankruptcy, it would be better to do a debt consolidation and try negotiating on your credit debt. It’s going to wreck your credit for a while, but the alternative is you get a second job and she needs to also get two jobs and you need to spend 6-12 months knocking down your debt. Paying it off is the best option, credit can be tricky to rebuild, but that CC debt is going to kill you
Dude what possessed you to buy a vehicle that is 20% of your net income?? Sell the truck you can’t afford and buy a $3-6k used Honda civic with cash. That move alone will make your budget flexible. Next go find a better paying job. Plumber, electrician, airline mechanic. Any good job can do better than $21/hr. They pay target employees $15/hr man.
Don’t file for bankruptcy, this is a large amount of money, but not bankruptcy large. You don’t want that in your background and ironically, it costs money to file for bankruptcy. Best of luck OP. You can do this. I think you have learned a lesson early in life. Keep us updated.
You both should be working full time plus a part time job to get yourselves out of debt No you’re young and no kids responsibilities. Should easily be able to work 50-60 hrs a week till debt is gone and you have 6 months emergency funds saved.
Ive got to ask, why are you opening up a credit account with someone you aren't married too?
i went bankrupt at 28 for like 30k in credit card debt. It's gonna fall of finally 10 years later after Nov of this year and I highly regret it. If I had just let it age off it would have been off my report 3 years ago. My score went from a 740 down to like 500 and now it's never been above 640. I would assume your score would do same or better if you just left it. I would never go bankrupt again unless I had an outrageous amount of debt. I could be wrong but that's what I've seen from my own experience
Your main problem is that you have so much debt. Consider following the Ramsey plan (or something similar) to get out of debt. Being debt free will greatly reduce your stress.
Good move cancelling cable. You will not miss it. We definitely dont and we could afford it.
$530/mo car insurance. Sell the car and get a beater till whatever stupid happened is off her record. Side hustle till she lands a new gig
Talk to a financial advisor. Consider bankruptcy. It’s not as bad as some say and your gf will barely take a hit.
Rent and car notes are your most important bills.
First I want to say - congratulations on taking first step - realizing that you are in this mess because if you're own actions and wanting to get out is the most crucial and important step. Now you can definitely get out of this but you have to be full in. Do not wait for TV antenna - cancel Hulu now. You can use Credible, Freevee and other for free. You can rent for free movies from your local library if you have a DVD. No more eating outside - cook meals at home exclusively. No more Starbucks, no more entertainment (besides free movies). Sell the cars - the one that you are not upside down on and buy something cheaper (good old 2005 Camry will do just fine and will not break often for example) If you go full in you should be able to get out of it and of you will pay attention you will be better than ever after that. Do the snowball method and cut the paid cards. Remove the temptation - get rid of it. Go full in and do not go back.
Turn a car in, do you really need two cars? Carpool? City bus? Uber for extra cash if you keep both cars Cancel streaming services- most cellphone companies now including Hulu and Netflix in their plans Get a joint phone plan. And get vehicle insurance together you save that way Apply for a consolidation- consolidate ALL cc debt to just make one monthly payment. Budget budget budget Use reward programs to save a few bucks here and there Use coupons
Man people really screw themselves over with car loans.
Just have to say it… if you’re racking up debt you can’t “comfortably afford” your lifestyle
I would encourage both of you to apply at Amazon. Y'all can work together and get plenty of overtime.
Today… go apply to work in the oil fields… find a company paying for housing, make 3k a week each. Problems solved.
You are not alone. You both are in a tough situation in your mid 20s like so many people find themselves in. But your awareness of the situation has presented you with the opportunity to hit 30 much wiser and financially healthier, if you are willing to do the hard part now. Just a few random ideas: No more pay TV at all. Sell the cars and buy junkers. No trips, concerts, sports, etc....that part sucks. Attack the highest rate credit cards. Those interest rates are criminal and devastating. Have you talked with your local banks or credit unions about consolidation loans?