I recently lost my warehouse job and have been struggling to find another one. I’ve applied to everything from warehouse roles to fast food but I’m not having any luck. It seems like a lot of people in my area are facing the same problem.
I currently have $19,000 in credit card debt, most of which built up while trying to cover bills and expenses after my savings ran out while my fiancée was finishing her schooling. She’s now working and covering everything my credit card payments, rent, car payment, etc.
With money being so tight, we’re considering not paying the credit cards anymore. I’m not sure what my best options are at this point. Should I look into bankruptcy, stop making payments, try to settle my debts, or consider consolidation? Any advice would be appreciated.
In your situation, as you are just getting started, filing for bankruptcy seems like a wise choice. $19,000 is a significant debt, and you don’t have a job at the moment. Immediately file for bankruptcy to have your debts dismissed, seek employment, and start again. Your fiancee shouldn’t have to foot the tab for you. She won’t put up with that for long, and it might damage your bond. Then start listening to Dave Ramsey and quit using CC to get by.
In a circumstance such as yours, you should prioritize taking care of your four walls, transportation, and food. Go listen to some Dave Ramsey. If you folks are really that tight, those credit card bills can wait.
How about considering a non-profit debt management company?
Non-profit debt management organizations can negotiate with credit card companies to lower your interest rates for a small monthly fee and a one-time setup fee. The monthly fee is typically $5-$10 per account, and the setup fee is around $50. These companies are helpful if you need third-party assistance to manage your finances. However, keep in mind that your credit accounts will likely be closed, which can lower your credit score.
You can reach out to one of the two federally vetted non-profit debt management companies: the National Foundation for Credit Counseling (NFCC) and the Financial Counseling Association of America (FCAA). Both organizations also offer bankruptcy consultations if you decide to go that route. The Justice Department has a list of vetted agencies, but not all of them are non-profits.
The Consumer Financial Protection Bureau provides a clear explanation of the differences between debt management/credit counseling services and debt relief/settlement companies. Be cautious with the latter, as debt settlement/relief companies can expose you to lawsuits, and any forgiven debt may count as taxable income.
Here’s some information on the options:
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NFCC: Offers debt management plans (no loans) and budget analysis. While they do charge fees, most cases are low-cost or even free, but this isn’t guaranteed. Check their FAQs for more details.
- FCAA: Offers free counseling sessions, although some services may come with a fee. You’re not obligated to enroll in any debt management plans.
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Justice Department: Has a list of approved credit counseling agencies. Look for the non-profit ones.
Be sure to research any company before committing, even if they’ve been vetted by the Justice Department, NFCC, or FCAA. Some organizations may become less reputable over time. Check with your state attorney general’s office and consumer protection agency to ensure the company is legitimate.
Additionally, under the Credit Repair Organizations Act, you have the right to cancel within three days without penalty for any reason.
I don’t mean to be impolite, but there must be some important context that you’re overlooking here. I fail to see how you’ve been jobless for about six months. Amazon, Walmart, or Home Depot? Where will you never get hired? What are you excluding from this since the math doesn’t add up?
I applied to all those places but never heard back. I eventually found a low-paying job at a small retail business in a rural area, but I’m still applying everywhere without any luck. I have a car, no criminal record, and none of my social media accounts are linked to my real name. I only post on here anyway. I follow up in person and via email, doing everything I’ve been told to do.
I moved to this state in 2017 when I was a teenager and have no intention of going back home, but sometimes I feel like moving across the country might be hurting my chances of finding a good job, even though it was my choice to be here. I just need a job that can help me get through welding school so I can finally be set. But right now, no one is calling back.
With unemployment down, jobs are filling up fast, and it feels like everyone is replaceable unless they have an in-demand skill. I just need to get these welding certifications so I never have to worry about this again.
You should not file for bankruptcy just yet. I take it you drive a car? Enroll in every driving service that comes to mind in your area. Uber Eats. DoorDash. InstantCart. Task Rabbit: Are you capable of doing any cleaning, creating furniture, or even just delivering people to run errands? The ability to customize your hourly rate is the best feature of Task Rabbit. Give pizzerias and cannabis shops a call to see if they need any drivers or have any openings. You’re capable of this. Love, never give up.
Launch a contracting company using your abilities, such as construction or dog walking. Create an LLC. Get paid and keep a record of all your deductions. Seek out any available help if you’ve lost your work or have little money. Pay off high-interest loans and credit cards first. or file for bankruptcy if that isn’t an option. God bless.
I would think about filing for bankruptcy if I was unable to secure a consolidation loan or move my balances to another credit card. I wish I had filed sooner. I filed in 2017 for almost the same amount of credit card debt as you. We could hardly afford to pay the minimum, much less anything toward the principle. When I filed, I was going to pay off my automobile, so I was able to keep it. A few years later, I opened up a few cards to build up my credit. After that, I really didn’t have any trouble renting apartments, and last year, I acquired a house with a score in the 700s.