Income: $82k
Credit Card Debt: $30k (I stopped making payments about a year ago because of child expenses. The minimum payments for the 3 cards were around $200-$300 each per month.)
Rent: $1800 per month
Car Lease: $650 (Can’t end the lease until June 2026)
Car Insurance: $300 per month
Looking for advice on whether filing for bankruptcy is a good idea or if there are better alternatives. I feel stuck and unsure of the best way to move forward.
Are you planning on making any big purchases in the next few years? If you file, it could impact your ability to get approved for something like a car loan when your lease ends. I’d recommend meeting with an attorney for advice—it’s usually free to consult.
@Perry
I don’t have any big purchases in mind right now, except maybe replacing our old couch. It’s falling apart.
Jaden said:
@Perry
I don’t have any big purchases in mind right now, except maybe replacing our old couch. It’s falling apart.
If you’re considering bankruptcy, buying a new couch shouldn’t even be on the table. Look for something secondhand or just use what you’ve got. You’ll need to change spending habits for this to work long-term.
Jaden said:
@Perry
I don’t have any big purchases in mind right now, except maybe replacing our old couch. It’s falling apart.
At this point, you need to focus on essentials. A couch isn’t a priority right now. Check thrift stores or ask friends and family for hand-me-downs.
Chapter 13 might be an option if you can’t manage payments anymore, but it’s a commitment for about 5 years. After that, you’ll be debt-free before you turn 40, which isn’t a bad outcome. Just make sure you work with a good attorney to crunch the numbers. It’s not ideal, but it’s not the end of the world either.
What’s your monthly take-home pay, and what do your other expenses look like? It’s hard to give solid advice without the full picture.
Greer said:
What’s your monthly take-home pay, and what do your other expenses look like? It’s hard to give solid advice without the full picture.
I bring home about $4,800 a month. Other expenses include:
Other costs vary, like clothes for my growing child, work clothes (now that I’m back in the office full-time), and unexpected doctor or vet visits.
@Jaden
With that income and your fixed expenses, you should have around $900 left over each month. Bankruptcy might not be the best choice yet. Look into debt relief programs. I used one called Greenpath to consolidate my credit card debt into a single monthly payment with low interest. It’s worth checking out.
@Greer
I’ve always thought debt relief programs were scams. How does Greenpath work?
Jaden said:
@Greer
I’ve always thought debt relief programs were scams. How does Greenpath work?
Greenpath negotiates with your creditors to lower interest rates and monthly payments. They combine your debts into one payment, and your accounts get closed as part of the process. It shows as voluntary closures on your credit report. It’s been straightforward for me so far, and I’m about three months in. You should give them a call and see if it’s a fit for you.
@Greer
I end up with closer to $100-$200 per paycheck after everything. My daily Starbucks habit doesn’t help, so I’m cutting back. Also, kid expenses always fluctuate—doctor visits, medicine, or a sitter so I can go out for a meal once or twice a month.
@Jaden
You’re spending on things that add up fast—Starbucks, sitters, and meals out. If you don’t track where every dollar goes, you’ll keep falling short. Take a closer look at your budget and cut back wherever you can.
Paying over $1k a month for your car and insurance is tough. Have you looked into getting out of the lease and finding a cheaper used car? That could save you a lot. Also, do you get any child support to help with expenses?
@Charlie
I’ve tried to end the lease, but no luck until June 2026. For child support, I get $1,200 a month, but daycare is $1,500, so that eats most of it.
Jaden said:
@Charlie
I’ve tried to end the lease, but no luck until June 2026. For child support, I get $1,200 a month, but daycare is $1,500, so that eats most of it.
Have you checked if you qualify for daycare assistance or scholarships? That could help a lot.
@Perry
My son is 1.5 years old, so not school-aged yet. I make too much to qualify for assistance, unfortunately.
Jaden said:
@Charlie
I’ve tried to end the lease, but no luck until June 2026. For child support, I get $1,200 a month, but daycare is $1,500, so that eats most of it.
Based on your expenses and income, it looks like you have about $900 left each month, but you’re not saving much. If you can’t change your fixed costs, you’ll need to cut back on variable ones, like groceries or non-essentials. Also, consider ditching the car after the lease ends—you could save $1k a month right there.
@Charlie
I’m 100% planning to get rid of the car once the lease is up. I’ll look for something more affordable, but I still need a reliable car since I have a little one who rides in a car seat. Emergencies happen, so I can’t go completely without a car.