I know my debt isn’t as bad as some people’s, but it’s still a lot for me. I have $18k left on my car loan and about $6k on my credit card. I work part-time at $25.50 an hour and used to have a second job, but they let me go when the season ended. I’ve applied to 10-15 other places, but my schedule with my current job isn’t flexible enough for most employers.
I also owe taxes because I didn’t realize my jobs weren’t withholding enough. Almost all my money goes to my car, insurance, gas, groceries, rent ($300), and basic necessities. I use my credit card for things I want but also for car insurance, my phone bill, and eating out occasionally.
I spend about $200-$300 a month on groceries. I thought I was managing okay, but losing my second job threw everything off. I moved to the US with debt and was getting close to paying it off, but I needed that extra income to do it.
So… should I file for bankruptcy, or do I just keep trying to find another job?
You might want to do a free consultation with a bankruptcy attorney. If your car has a lot of equity or you owe more than it’s worth, that could affect whether you get to keep it. Finding another job isn’t guaranteed, especially since you’ve already been rejected because of your schedule.
Check out ACCC. They’re a nonprofit that helps with debt management. My friend got two of their credit cards down to 0% interest and now just pays a fixed amount each month. Their credit score actually went up too, since they didn’t have to default.
Honestly, I gave up. Stopped paying my credit cards and let them go to collections. No more 30% interest eating away at my money. I already paid way more than I actually borrowed, so I don’t feel too bad about it. They’ve sent me some offers to settle, but I don’t have the money. The only thing I keep paying is my car because I actually need it. My credit is wrecked, but I’m young enough to rebuild before I need it for anything big.
Kelly said: @Ainsley
You know those defaults and collections stay on your record for seven years, right? Might have been better to just file for bankruptcy.
Bankruptcy stays for ten years though… isn’t that worse?
@Hart
The difference is, with bankruptcy, you get a clean slate and can start rebuilding your credit right away. With unpaid debts in collections, they can still come after you, sue you, and even garnish wages in some cases.
Kelly said: @Ainsley
You know those defaults and collections stay on your record for seven years, right? Might have been better to just file for bankruptcy.
Yeah, but I don’t care. I don’t need credit right now, not planning to buy a house anytime soon, and I’ll never finance another car.
Kai said:
Filing for bankruptcy over less than $30k isn’t worth it. Get another job.
Why is bankruptcy not worth it for debt under $30k? I’m asking for my own situation.
It really depends. I was making $30k-$35k a year and filed for bankruptcy over $20k in debt. Whether it’s ‘worth it’ depends on your income and situation.
@Kelly
Bankruptcy stays on your credit for seven years. If your debt can be paid off in four years or less, it’s better to just grind it out. I had $36k in debt on a $60k salary and paid it off in two and a half years by making some sacrifices.
@Kai
Thanks for the advice… my problem is that I don’t make anywhere near that much. I usually budget well, but I grew up not having much, so I sometimes buy things just because I can now.
Kai said:
Filing for bankruptcy over less than $30k isn’t worth it. Get another job.
Why is bankruptcy not worth it for debt under $30k? I’m asking for my own situation.
Bankruptcy ruins your credit for years. If you live in the U.S., paying off $30k is doable if you adjust your lifestyle. Get a second job, apply for more than 10-15 places, and be willing to make sacrifices.
@Vesper
I get what you’re saying, but there’s no need to assume I’m unwilling to change or make sacrifices. I have morals and values that keep me from working just anywhere, and I’m not going to put up with a toxic workplace just for the money. I’d rather find something that fits me better than burn myself out for a job I hate.