I messed up pretty badly and now I’m drowning in debt. I’ve got a motorcycle, a car, and a bunch of credit cards adding up to a lot more than I can manage on my current income. My wife and I have a small child, and she’s staying home to take care of them. We’ve got rent at $550, but everything else adds up fast. I’m considering selling the motorcycle and maybe even the car to try and get ahead, but I’m upside down on both loans. Bankruptcy has crossed my mind, but I don’t know if that’s the best move. Has anyone been in a similar situation? How did you handle it?
Can you sell the motorcycle? That would free up some money and cut down your insurance.
Toni said:
Can you sell the motorcycle? That would free up some money and cut down your insurance.
I thought about it, but I’m still underwater on the loan. Would it still be worth it?
@Kasey
If you’re underwater, you could take a loan for the difference. It’s better to owe less overall. Or you could call the lender and ask for an extension while focusing on paying off smaller debts first.
@Darwin
You could also sell the car first and use the money to deal with the motorcycle loan. A cheaper car might help save on insurance and gas too. Your RAV4 loan is huge—it’s eating up a lot of your budget.
@Quinn
You’re right. Selling the motorcycle might still help even if it doesn’t fully cover the loan. Look into side gigs like donating plasma, rideshare driving, or even getting a part-time job at a hospital. They’re always hiring for things like environmental services, and the pay can be decent. You can get through this.
@Darwin
What exactly are environmental services?
Blaine said:
@Darwin
What exactly are environmental services?
It’s basically the cleaning crew in hospitals. You could also look into patient care technician roles or transport jobs. Some of these don’t need certifications, and hospitals usually offer flexible hours.
@Darwin
Thanks, I’ll check that out. I need all the options I can get.
@Kasey
Do you realize that by not addressing this, you’re risking it snowballing? Owing $20k later is worse than dealing with $6k now.
Ray said:
@Kasey
Do you realize that by not addressing this, you’re risking it snowballing? Owing $20k later is worse than dealing with $6k now.
I hear you. I’m not sure I’d qualify for another loan, though. It’s something I’ll definitely look into.
@Asher
But you qualified for a $50k loan on vehicles? Seems like you might have more options than you think.
Ray said:
@Asher
But you qualified for a $50k loan on vehicles? Seems like you might have more options than you think.
It’s easier to get a loan for a vehicle since it’s collateral. Unsecured loans are a whole different ballgame.
@Asher
Could you ask family for help covering the $6k?
@Kasey
The bike is a sunk cost. Sometimes it’s better to cut your losses and focus on paying off the higher-interest debts.
Where do you live that your rent is only $550? That’s really low, but it sounds like even a small change could wreck your budget.
Ellis said:
Where do you live that your rent is only $550? That’s really low, but it sounds like even a small change could wreck your budget.
We’re renting from a relative who’s giving us a break. Without that, we’d be in an even worse spot.
Ellis said:
Where do you live that your rent is only $550? That’s really low, but it sounds like even a small change could wreck your budget.
If I were your relative, I’d be pretty annoyed seeing a brand-new motorcycle while giving you cheap rent.
Your phone bill at $200 and auto insurance at $270 seem really high compared to your rent. Can you cut those down? Also, check your tax withholding. You might be overpaying. And call your lenders to negotiate lower interest rates. If all else fails, bankruptcy could be an option.
@Fox
Yeah, I’ve always felt like my insurance was too high, probably due to my credit score. Our phone bill is high because of phone payments, but we’ll have them paid off soon.