June 26th, 2013
Facebook Question: Lots of Debt, Low Income
4 Comments |
“My credit score is 549. I have $39,000 in debt but only make $145 per week. What should I do?”
Here’s a few of the best responses we got:
Fix that Job!
“Pick up a couple more jobs and occur no new debt. Sacrifice fun until that debt is 0. We all have hard times. Learn from yours and other’s.” (Zo)
“My suggestion is to either get a better paying job, or to pick up another part time job. If you are getting by right now with your $145 a week, then use your second jobs pay to make credit card payments. Don’t use your second job pay to buy frivolous items.” (Moke)
“Get a new job, a 2nd job, or work more hours. Only buy what you NEED and skip the wants until you can start making all of your payments without any issues.” (Logan)
“Get another job and knock the smallest debt you have and work up.” (Sher-Lynn)
“Even paying 100% of your take home pay would result in almost 5.2 years to pay off. Easiest way is to file bankruptcy but that affects your credit for 10 years. Although after filing bankruptcy getting a 700+ score isn’t too hard as long as you don’t mess up too much after. File BK then apply immediately for secured credit cards with good credit unions. But with that being said you should really look for a new job or look at going back to school.” (Dane)
“File a Chapter 7 immediately. Cut all (if you have any) credit cards in pieces. Then seek another job, educate yourself, get a CDL & go drive a truck, etc.” (Timo)
“File Bankruptcy. Your finance charges will exceed your income. You cannot get out otherwise” (Herb)
There’s No One Solution…
“Ok, so putting all pride aside, and ignoring stigmatization, I would consider first income based housing. Then, work with an agency (such as Community Action Agency here in Cincinnati) that helps provide info/resources to get your other basic needs met. You need to establish a percentage of income budget/plan overall so that you will know how much disposable income you are working with. Then face your creditors and make arrangements on your debts. You can also see an immediate boost to your credit score by checking it for inaccuracies and disputing them. There is hope, but you really have to do the grunt work and have faith that the process you are going to go through will prove beneficial to you in the end. Good luck!” (Dorrian)
“Honestly, there isn’t one single solution to this. It is going to take lowering expenses, debt consolidation, better pay (another job likely), etc. etc.” (Jarrod)
All of these responses are great! In the end, there is no clear answer, as we don’t know this particular member’s specific situation. However, if she follows the good advice of our members, takes into heart the great tips in our blog posts and articles, and uses Credit Karma to monitor her accounts, we think she should be able to fix this situation. If you’re in the same position as this member, we hope this was helpful for you. Good luck!
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