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Hello everyone,

My name is Hannah and I'm 23-years-old.

5 years ago I started using credit cards and unfortunately was not taught the correct way to use them. Now I'm struggling with around 8,000 dollars of credit card debt and not sure what to do. I've been trying over the last year to start to pay off my cards one by one, but with the money I make my payments end up just getting eaten up by interest.

I'm at a loss of what I should do. I went to my bank and they gave me no options -- they just told me to pay off my cards like it was an easy thing to do. On top of that I also have around $30,000 dollars of student loans to worry about. I only make around 160-200 dollars a week on average with my job, so I'm anxious and nervous all the time. I've thought about bankruptcy but I've had people say how that will ruin my credit and I'll never be able to buy a house or a new car. (Some things I don't even thing I need right now -- I plan on getting an apartment and well I'd only buy a used car)

Honestly, at this point I just want to actually have money so that I can save for an apartment and other needs I have. My credit cards have made me so broke I can't even go see any doctors and saving money for a new used car is impossible.

I came on here hoping I might find some people who are more knowledgeable about these things to give me advice and maybe point me in the right direction. I don't want to be scammed and when I search online for debt relief I don't know who to trust.

What would be the best course of action for me?

Thank you for your time,
-- Hannah

You are not earning enough to even qualify to rent an apartment! At least a half decent one. You need to find a full time a second job if you have to.

Sub: #1 posted on Tue, 02/12/2013 - 18:04

Moderators Cum Industry Expert
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Well, I'm not looking to get an apartment yet. My brother and I are starting a business so getting a second job is out of the question. I really just want to get out of debt so I can save money. I make some extra money on the side with Ebay and my art, but my credit cards are out of control. I want to know what would be the best course of action to get out of debt for me. Should I go through a consolidation program or file for bankruptcy or something else?

Sub: #2 posted on Wed, 02/13/2013 - 16:26

Drowning_Helena Drowning_Helena

(Posts: 2 | Credits: )

If you hear nothing else, take note of the following: Operate from this: "If I dont have the cash, I cant afford it". Living on what you earn is the first step toward being independent and financially successful. Dont look for the easy way out, you took the debt, it your responsibility to pay it, not anyone else.

Now, the tough stuff, why are you only making less than $10K a year? That's rhetorical. Is that all you are worth? Sounds like you dont pay rent and prob dont pay for food either? You dont make enough money to pay for those things. Somebody (or government assistance) is sugaring your existence because sounds like you are educated, so i doubt you live in the slums.

We have the same portfolio, same amount of student loans (mine are only 3%) and I have about $10K in credit cards. I make over $40K a year, no car payment, $500 month rent and i am making dents in by debt, just paid off 4 creditors, have 3 left. However, at 30K a year, it would be difficult to make that headway. What's different between our portfolios, aside from my earning power, is that I am independent, nobody pays my way on anything.

Filing bankrupcy will not pay off your credit cards, you will still owe them, google the bankrupcy laws and get educated on the matter. You took the loans, it is your responsibility to pay them off by working. Don't be that person who only thinks of the easy way out, there is no easy way out. The only way out is to work more or make more.

Regarding your cards, first thing is to call your card company and close off new transactions.You can attempt to negotiate lower interest rates too, but don't expect much. Next, figure out what your interest is each month, this will tell you what you have to pay each month just to keep them from not going up, interest is no different than making a credit card purchase, bet if you had known that what the interest is each month, you would have thought twice about racking it up. Once you have gotten down to the "real" numbers, you can see the kind of problem you really have. Your interest is probably about $100 a month, so unless you are paying more than $100 a month on the debt, you are paying interest on that interest too, called compounding, not ot mention that you're not paying the debt down. WIth your income, you wont qualify for other cards that offer 0% introductory so dont bother. So unfortunately, you don't have a lot of options....... Sounds like your priority is to start a business and go further into debt rather than work more hours to ease the financial burden and stress? Typical artist mentality....that may sound harsh, but you took out loans to have a lifestyle you wanted and now you want an easy way out. Unless that business is immediately lucrative enough to pay your debt, you will be stuck in debt and likely make no dent in it..........the financially and ethically responsible thing to do is find a job and make more money to pay the debt you legally owe. Then apply yourself to a business venture. Sounds like you want your cake and eat it to though, typical financially irresponsible debtor.......

Do the right to get your debt down to half of what it is, at least then you will have better options.........but if you are only going to work part time and put your time into a business that will likely take years to turn a profit, you aren't going to improve your situation and you will continue to pursue the easy options.

Sub: #3 posted on Sat, 02/16/2013 - 06:10


Filing bankrupcy will not pay off your credit cards, you will still owe them, google the bankrupcy laws and get educated on the matter

You need to research the bankrutpcy laws Randy....Chapter 7 which she would qualify for WILL discharge her debt. A chapter 13 or wage earner plan would probably result in the a partial payment of the debt. A bankrutpcy however is just plan stupid for $8000 in debt.

I agree that Helen wants it all...and needs to grow up. Get a job that pays a half decent income, become financially independant and then work on the business.

Sub: #4 posted on Sat, 02/16/2013 - 06:30

Moderators Cum Industry Expert
(Posts: 17319 | Credits: )

Thanks for the information on chapter 7, just provide the info though, I am not considering filing, so "I" dont "need" to research anything........she does.

Our bankruptcy laws need to change if a person can take out credit card debt and then escape from do a lot of things in this credit based welfare society, culture and economy. It is the reason our country is in debt, like father (government spending) like son and daughters (credit card unhappy). No more hand outs and get out of jail free cards.

Sub: #5 posted on Sat, 02/16/2013 - 06:44


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