My Situation involving the debts that I owe
Date: Wed, 02/21/2007 - 07:03
I have $6500 in credit card debt. But I also have a debt to the navy for about $4000 and I'm going to owe about $2000 on my taxes this year. Not to mention that I have fallen behind on most of my bills and have approximately $1700 in bills for past months.
My bring home pay is about $2320 a month. My bills for the month total $3375(this includes Rent, credit cards, TV, Internet, Gas, Electric, Water, Phone, Insurance, Vehicle, gas in vehicle---doesn't even include groceries!!!). It's not hard to see that every month I'm digging myself into a bigger whole, $1000+ at a time.
Just to try to keep my credit from plummeting to an all time low, I have been rotating my money. Example: I pay $100 on one of my credit cards, then I turn around and pay $100 on my gas bill with the credit card I just paid. So, you see, I'm not really paying anything. Just doing my best to stay level. And actually, not even doing a very good job at that because the interest on the credit cards is adding up and I'm at my credit limit on all three cards.
See, over the last two years, I have made some bad decisions. On top of those bad decisions, I have had life throw a few curveballs at me. First, I got pregnant totally unexpected (first child), then I got sick from the pregnancy and had to be hospitalized. The baby was taken out early and was hospitalized. Then, I got into a car accident and wrecked my truck and was forced to buy a new vehicle with my not so great credit score, i.e. high interest rate. Now, the father of my child and I have split up. So, I've had a little bit of a rough time over the last few months or so. Add that to the bad decisions I made before all of this happened and I'm in a world of hurt. But, I know I can fix it and I have a plan.
I've already cut off the TV and lowered the cost of my phone plan. My sister, who lives with me, pays for the internet. That leaves me with just having to pay the essentials..Rent, credit cards, car note, insurance, water, electric, gas, gas in vehicle, vehicle maintenance, and groceries. Unfortunately, I can't even afford to do that and I make too much money to qualify for any state help.
The area I live is a high cost of living area and I only 50K a year. My rent is $1675. When I first moved into this place, I had a different job-making significantly more money and I had a roommate. After I took a lower paying position and lost the roommate, that's when things got rough. I've tried repeatedly to get out of the lease to no avail. They said if I leave, I am still responsible for the months rent that are left on my lease.
I have a plan. First, I have to say that I moved here after leaving the Navy because I took a job here. I don't have any friends or family here and I most definitely can not afford to add child care to my list of monthly bills. So, I've decided to move back to Detroit, MI. This is where I am originally from and where my entire family is. This solves a lot of issues. My son will have family around him, I will have family around to watch him while I work and I won't have to pay for child care. And, most importantly, I have already made arrangements to live with my aunt for a couple years. She has a 3 bedroom house and only her and her son live there. We have already agreed that I could pay her $300 a month rent. I have already been looking for a job in the greater Detroit area and there are many opportunities for someone in my field (Electronics technician) with my amount of experience. So, lining up a job is already in the works. It's just a matter of choosing the right one.
OK, so, I've done all the numbers and I think a loan of $20000.00 would get me out of this whole. If I get a loan for this amount, a 36 or 48 month loan, then my payments should be around $650 a month. I checked the salaries for the jobs I am applying for and the average salary for my field and experience is around $55,000/year. This would definitely allow me to pay off the loan and pay the $300 a month rent to my Aunt and I would be able to comfortably pay for gas in my vehicle, the payment on the vehicle, and insurance on the vehicle. As well as groceries and other life expenses--such as storage for my things while I live with my Aunt. With a $20000.00 loan, I could pay all my rent until the lease is up, pay off all my credit cards, pay my bills that have built up over the last couple months, pay my insurance bill for this 6 month period, and pay for relocation expenses. This would also give me the flexibility to take an offer for a position at any time. This makes my probability of me getting a good paying position more likely. I won't have to tell the company they have to wait until June before they can hire me. If they need me now, I can go now. But I definitely won't be going before I have a position lined up. Unless, I don't get one lined up before June. As of June, I will be going to my Michigan no matter what. The cost of living where my family lives is about a third of what it is here and it might be easier to look for a job in Detroit while I'm living there....But, that's just worse case scenario. I feel fairly confident that I will have a position long before then.
All that being said, if you look at my credit report, you will see that I am reliable. I pay all my bills on time, assuming I can afford to at the time. Even when things are rough, I still manage to pay the major bills first. Like my car payment and rent (and in the past, my mortgage). I would consider a loan payment for a $20000.00 a major bill with priority. Like my car payment or my rent. Just in case you don't notice for yourself, the reason my score has dropped so low is primarily due to the debt I owe the Navy. Other than that, you can see clearly I am responsible and that giving me a loan like this would be profitable for the lender (interest, interest, interest) as well as myself. I'm a comfortable risk.
Well, that's my story. How I broke my financial situation and how I plan to fix it. Do you think you can help?
Thank you.
Respectfully,
Jennifer
My bring home pay is about $2320 a month. My bills for the month total $3375(this includes Rent, credit cards, TV, Internet, Gas, Electric, Water, Phone, Insurance, Vehicle, gas in vehicle---doesn't even include groceries!!!). It's not hard to see that every month I'm digging myself into a bigger whole, $1000+ at a time.
Just to try to keep my credit from plummeting to an all time low, I have been rotating my money. Example: I pay $100 on one of my credit cards, then I turn around and pay $100 on my gas bill with the credit card I just paid. So, you see, I'm not really paying anything. Just doing my best to stay level. And actually, not even doing a very good job at that because the interest on the credit cards is adding up and I'm at my credit limit on all three cards.
See, over the last two years, I have made some bad decisions. On top of those bad decisions, I have had life throw a few curveballs at me. First, I got pregnant totally unexpected (first child), then I got sick from the pregnancy and had to be hospitalized. The baby was taken out early and was hospitalized. Then, I got into a car accident and wrecked my truck and was forced to buy a new vehicle with my not so great credit score, i.e. high interest rate. Now, the father of my child and I have split up. So, I've had a little bit of a rough time over the last few months or so. Add that to the bad decisions I made before all of this happened and I'm in a world of hurt. But, I know I can fix it and I have a plan.
I've already cut off the TV and lowered the cost of my phone plan. My sister, who lives with me, pays for the internet. That leaves me with just having to pay the essentials..Rent, credit cards, car note, insurance, water, electric, gas, gas in vehicle, vehicle maintenance, and groceries. Unfortunately, I can't even afford to do that and I make too much money to qualify for any state help.
The area I live is a high cost of living area and I only 50K a year. My rent is $1675. When I first moved into this place, I had a different job-making significantly more money and I had a roommate. After I took a lower paying position and lost the roommate, that's when things got rough. I've tried repeatedly to get out of the lease to no avail. They said if I leave, I am still responsible for the months rent that are left on my lease.
I have a plan. First, I have to say that I moved here after leaving the Navy because I took a job here. I don't have any friends or family here and I most definitely can not afford to add child care to my list of monthly bills. So, I've decided to move back to Detroit, MI. This is where I am originally from and where my entire family is. This solves a lot of issues. My son will have family around him, I will have family around to watch him while I work and I won't have to pay for child care. And, most importantly, I have already made arrangements to live with my aunt for a couple years. She has a 3 bedroom house and only her and her son live there. We have already agreed that I could pay her $300 a month rent. I have already been looking for a job in the greater Detroit area and there are many opportunities for someone in my field (Electronics technician) with my amount of experience. So, lining up a job is already in the works. It's just a matter of choosing the right one.
OK, so, I've done all the numbers and I think a loan of $20000.00 would get me out of this whole. If I get a loan for this amount, a 36 or 48 month loan, then my payments should be around $650 a month. I checked the salaries for the jobs I am applying for and the average salary for my field and experience is around $55,000/year. This would definitely allow me to pay off the loan and pay the $300 a month rent to my Aunt and I would be able to comfortably pay for gas in my vehicle, the payment on the vehicle, and insurance on the vehicle. As well as groceries and other life expenses--such as storage for my things while I live with my Aunt. With a $20000.00 loan, I could pay all my rent until the lease is up, pay off all my credit cards, pay my bills that have built up over the last couple months, pay my insurance bill for this 6 month period, and pay for relocation expenses. This would also give me the flexibility to take an offer for a position at any time. This makes my probability of me getting a good paying position more likely. I won't have to tell the company they have to wait until June before they can hire me. If they need me now, I can go now. But I definitely won't be going before I have a position lined up. Unless, I don't get one lined up before June. As of June, I will be going to my Michigan no matter what. The cost of living where my family lives is about a third of what it is here and it might be easier to look for a job in Detroit while I'm living there....But, that's just worse case scenario. I feel fairly confident that I will have a position long before then.
All that being said, if you look at my credit report, you will see that I am reliable. I pay all my bills on time, assuming I can afford to at the time. Even when things are rough, I still manage to pay the major bills first. Like my car payment and rent (and in the past, my mortgage). I would consider a loan payment for a $20000.00 a major bill with priority. Like my car payment or my rent. Just in case you don't notice for yourself, the reason my score has dropped so low is primarily due to the debt I owe the Navy. Other than that, you can see clearly I am responsible and that giving me a loan like this would be profitable for the lender (interest, interest, interest) as well as myself. I'm a comfortable risk.
Well, that's my story. How I broke my financial situation and how I plan to fix it. Do you think you can help?
Thank you.
Respectfully,
Jennifer
Hi Jennifer. It sounds like you've been through a lot. You h
Hi Jennifer.
It sounds like you've been through a lot. You have a plan, though, and that's great. Since you have registered, a debt counselor from your area will be contacting you shortly to go over your various treatment options with you. Good luck, and let us know how you're doing.
I am sorry. You are going through a rough time. It looks like yo
I am sorry. You are going through a rough time. It looks like you are doing everything to put yourself back in control. I can only add that you have to put more on the payments in order to minimize the expenses that are adding on interests alone. Look for any part time job because you have to generate more income and this will only help you in getting out of debts. Remember, these problems are not going to stay forever. You just have to stress more presently and this will do good for you in the long terms. Any added source of income will help.
