I made a huge mistake taking out loans from Rise and NetCredit, and now I can’t afford the $600 monthly payments. My wife doesn’t know about any of this, which makes it even worse. On top of that, I’ve been borrowing from MoneyLion, Earnin, and Dave just to pay each other back, which has turned into a complete mess.
I’m looking at a few options:
Debt consolidation programs: I started the process and got calls from JG Wentworth and National Debt Relief, but after reading about them here, they seem just as bad as the loans I took out. Not sure if they’re really a good idea.
FamilyMeans.org: I submitted my info to see if they can help, but I don’t know what to expect.
Revoking ACH authorizations: Thinking about stopping automatic withdrawals and hoping I can settle with a debt collector later without getting sued.
I have a full-time job, but after bills, I’m left with only about $175 per paycheck. I started doing DoorDash, but I don’t have much time for it. I’m desperate for a way out of this. Any advice would mean a lot.
I used National Debt Relief when my wife lost her job during cancer treatment. It wasn’t a bad experience, and we actually paid everything off faster than expected. One of the benefits is that the insane interest stops piling up. We used it for credit card debt, though, so I can’t say how it works for loans. People seem to have mixed feelings about it.
You really need to talk to your wife.
Unless you live in a major city, DoorDash might not be worth it. Gas and maintenance costs add up fast.
Go over your budget.
Either snowball or tackle the highest-interest debts first. Some will go to collections, but at your income level, you might not have a choice unless you can cut costs or pick up another job.
My wife and I started a small cleaning business on the side. It cost next to nothing to start and brought in about $1,300 a month after a few months. Might be something to think about.
@Jory
I live just outside Miami, so DoorDash is always busy. My car gets great gas mileage, and I just did a full tune-up, but yeah, that was another expense that added to my debt.
The loans have the highest interest rates. I also have a maxed-out secured credit card that I’m making minimum payments on.
How did you get your cleaning business started? How did you find clients?
The reality is that the only real solution is paying back what you owe.
It sucks, but you need to face this head-on. Pick up an evening job, cut expenses, and start paying things down. Every option that isn’t just paying it back will have serious long-term consequences.
Jordy said: @Finley
I hear you. I guess I just feel like no matter what I do, I’m stuck. A lot of these ‘solutions’ seem just as shady as the loans.
They usually are.
Where you’re at now is rough, but taking the ‘easy’ way out just drags it out longer. Having bad credit will mess up your life way more than you think. There’s no quick fix for it.
Call your lenders, see what they can offer, and start paying it down.
Jordy said: @Finley
I hear you. I guess I just feel like no matter what I do, I’m stuck. A lot of these ‘solutions’ seem just as shady as the loans.
If you let this go to collections, it’s going to tank your credit for seven years. That means no personal loans, no credit cards, no mortgage approvals—nothing.
Try working with your lenders first. They might be able to set up a payment plan or refinance. A lot of them would rather work with you than write off the debt.
For the cleaning business, we started by talking to small businesses in strip malls. A lot of them hire cleaners through management companies, so we went straight to them.
We charged a flat monthly rate instead of per square foot. We knew how long each job would take, so we based pricing on what we wanted to make per hour.
After a few months, we were doing 4 jobs per evening, making around $600 a month for about 9 hours of work per week. Title offices were the easiest—low traffic, easy cleanup. Quick vacuum, empty trash, clean a bathroom, and you’re out in 20 minutes.
I don’t have financial advice, but you really need to tell your wife. It’s going to be tough, but tackling this together will make it easier in the long run. If she finds out on her own, it’s going to be a much bigger issue.
It’s understandable that you want to protect her from the stress, but keeping this from her won’t help your marriage. You have to be upfront.
Family Credit Management is a nonprofit credit counseling service, not a debt settlement company. They were able to set up a payment plan for me with Rise and NetCredit that dropped my payments from $495 to $159 a month. They also negotiated my balance down from $5,400 to $1,500, so I’ll have it paid off in 10 months.
If you go this route, your credit will take a hit because the accounts need to be past due for about 60 days before lenders will work with them. But for me, it was worth it to finally be free of the debt.
Also, look up how to revoke Earnin debts—it works, but you need to change your spending habits and be honest with your wife.
You need to tell your wife. If she finds out on her own, it’s going to be way worse than if you just come clean.
Yes, she’ll probably be upset, and it might put some strain on things, but honesty gives you a chance to rebuild trust. Keeping it from her isn’t an option.
Follow the advice here about handling your finances, but the first step is being upfront with her.