I’m currently $50K in debt, which includes a 401(k) loan, credit card debt, a personal loan, and a car loan. Here are my monthly utility expenses for a household of four:
- Mortgage: $700
- Electricity: $200
- Water & Trash: $150
- Internet: $150
- Phone: $200
- Car Payment: $500
- Credit Card Payment: $500
- Wife’s overseas expenses: $300
My debt breakdown is as follows:
- 401(k) Loan: $8K (for a wedding in 2022)
- Personal Loan: $30K (consolidated part of my credit card debt, but not all)
- Credit Card Debt: $4K
- Car Loan: $500 (1 year and 8 months remaining)
I’m trying to supplement my income by selling on eBay and cooking meals for coworkers once a week. Any assistance would be greatly appreciated.
For context, I take home $1,600 every two weeks. I have a mortgage with Rocket Mortgage, and my house is valued at $200K with $60K in equity.
The $30K loan through Lending Club has an interest rate of 9.24% and an APR of 12.06% for 36 months. My monthly payment is $1,021, but I’m paying $1,106. The 401(k) loan is automatically deducted from my paycheck every two weeks.
You should work two jobs, buddy. You’re not eating and your budget doesn’t allow for it. Take a job in a restaurant to receive a free lunch during your shift and an additional $700 a month to help pay off your debt.
You must either
A. Find a paying job
B. Take a second job.
C. File for bankruptcy
Your phone and Internet bills are excessive, yet cutting that would not solve your issues.
Mint Mobile offers five GB plans for $15 per month, or about $200 a year (taxes and fees included).
You obviously have room to go down, as 150 is double what I pay for a one gig connection.
You should consider getting a second job. Instead of gig work that could wear out your car, try looking for a position at a grocery store. They might offer you a discount, which could help with your daily meals and provide supplies for cooking for your coworkers.
The grocery store is just one option, but the key is to find a way to earn a few hundred extra dollars each month to give yourself some breathing room. Paying off your smaller loans first will help you make more progress on the larger ones.
Additionally, address your phone and internet costs. Opt for a more affordable internet plan and switch to a budget phone provider. I use Visible at $25/month or used Mint at $15/month. Adding another part-time weekend job could make a significant difference.
Shut down Chapter 7 and end the day. If not, you’ll be desperately poor for the rest of your life. Simply carry it out. Believe me. I remain here, having completed the task twice. Avoid being like me. Once filed, never to be seen again.
Do you have payed for your phones? If not, consider Mint or Visible if there is no contract. These days, good plans start at about $25 per line per month. (or smaller).
Are you paying for gigabit speeds on the internet? Examine the price of less expensive plans. In nearly all cases, 300 MB is adequate, even for a reasonably tech-heavy household; at the very least, there’s room to reduce costs there and free up additional funds for debt repayment sooner.
If you qualify for public assistance, many ISPs offer “internet assist” plans that are at or about 50 Mbps for $15–20 per month. You failed to specify what you do for a living, how much money you bring home every two weeks, etc.
I settled roughly $10,000 worth of debt. While it was really effective, it destroyed my credit for about a year and a half. It appears that you likely have a high utilisation rate and a low credit score already. To get your debt paid as soon as possible, tank it a little bit more for a while, settle it through an approved debt settlement business (I believe Forbes provides a list), and focus on boosting your income. As you are already aware, never again utilise credit to cover expenses.