Single mom in deep debt … what are my options?

I’m a divorced mom trying to keep my head above water, and I’ve just been served court papers for my credit card and school debt. I have $20k in credit card debt and $5k in school debt (not student loans). I’m current on my mortgage (owe $135k on the house) and on my car payments (still owe $20k on one of my two cars, the other is paid off but isn’t worth much).

I work part-time while going back to school, and I can barely manage my basic expenses like mortgage, utilities, car insurance, gas, and food for my kids.

What can they actually do? Can they take my home or cars? Is there any realistic option for me here?

I’m in NY if that makes a difference. Any advice would be appreciated.

Why keep two cars? Selling one would help knock out some of that debt.

Andi said:
Why keep two cars? Selling one would help knock out some of that debt.

Especially the one with the payments

Andi said:
Why keep two cars? Selling one would help knock out some of that debt.

The one that’s paid off is only worth about $5,000, according to the blue book. Doesn’t seem like it’d make much difference.

@Harley
But that $5k would clear the school debt and at least get one collector off your back.

@Harley
Just get rid of the car payment. It wasn’t a great idea to have it in the first place.

Andi said:
@Harley
Just get rid of the car payment. It wasn’t a great idea to have it in the first place.

I bought it when I was married with two incomes and wasn’t in school. Since the divorce a year ago, I’ve had no support, and I decided to go back to school for better opportunities. I don’t think I deserve to be judged here … life doesn’t always go as planned.

@Harley
Have you considered selling the car you owe on and just driving the paid-off one?

Vin said:
@Harley
Have you considered selling the car you owe on and just driving the paid-off one?

The paid-off one needs a lot of work, so I need something more reliable for getting to and from work.

@Harley
Even $5k is still something … selling the other car would free you from that monthly payment, and you could save on insurance, too.

@Harley
I recently got rid of a car that needed a bunch of work. I didn’t make anything off it, but it saved me on gas, insurance, and maintenance. Sometimes it’s better to let go.

@Harley
I agree they were a bit rude. Hang in there, and consider selling the $5k car to reduce your debt.

You’re paying on two cars? Why not sell the one with the payments and use the paid-off car? That seems like a no-brainer.

Vesper said:
You’re paying on two cars? Why not sell the one with the payments and use the paid-off car? That seems like a no-brainer.

I’ve only had the car for 2 years, and I fell into debt more recently. Selling it would only pay off what I owe, so I don’t see how it helps.

@Harley
If you sell it, you’d no longer have that monthly payment. You could use that money for other bills.

Noor said:
@Harley
If you sell it, you’d no longer have that monthly payment. You could use that money for other bills.

But if she owes $20k and it’s only worth $5k, isn’t there still $15k in payments left? Many people got caught in crazy car loans when prices spiked.

@Harley
With that attitude, it’s no wonder you’re in debt.

Onyx said:
@Harley
With that attitude, it’s no wonder you’re in debt.

And probably why she’s divorced.

@Harley
It’d be one less bill to worry about.

Montana said:
@Harley
It’d be one less bill to worry about.

But if she sells it, she’d still be stuck paying off a loan without having a car to drive.