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High interest first!!!! Get a 2nd job and when you can attempt to get an asset with some equity then roll what you can.
Secured>unsecuredx1000
Good luck to you.
Wow thanks for all the replies, everyone! It's really great that you guys are thinking about my future. lol. I mean, I never really thought about it that much because I imagine I'll be working at this company for a long, long time. If not, retire there. It's a great reputable company and I don't think I'll be going anywhere anytime soon. The reason why I felt like going back to school is because I wanted another degree. There I go again, WANT! I already graduated a year ago, but apparently it's not good enough to move up in the company. So I need another one to get the one job I really want within the company. My boss said that he will see where this new degree will take me and he'll just go from there [whenever I get it].
I guess what I'm trying to say is, if I stay at this company, i'll be fine to take any route that I need to take. And it's probably going to be BK. The problem is, I don't want to go that route. I'm not one who runs from my problems, but if some of you guys think it's my only option, then maybe I'll start considering it. I don't have any money saved up or anything, but if I need money to file for BK, I can always dip into my 401k, right? I don't know... I don't want to jump ahead of myself. There's gotta be a way to deal with this. And I'm thinking get a second job... and not go back to school.
By the way, the interests on my cards are all less than 11%. That's not so high is it? My car loan is about 5% I think. I was very responsible once upon a time. I just don't know what happened the past year... or two.
I have done the BK thing, and believe me, it was the worst experience of my life. Are you prepared for 10 years of bad credit? If your credit is okay right now, here is what I would do.
1. Deep breath! You didn't get into this overnight and you will not get out of it overnight. But it's not the end of the world! This is just money, not a life-threatening illness or a catastrophe that cannot be undone with work and time. Even if you do go the BK route, time and work will take care of it.
2. Make a spreadsheet of all debt.
3. Make a spreadsheet of all expenses that are ESSENTIAL. There should only be a few things on this sheet. Budget for EVERYTHING--groceries, haircuts, birthday cards.
4. Cut the cable/internet
5. Cut the cell phone-go pre-pay for the duration---only emergencies
6. Sell the care and buy a junker with no payment/small payment
4. Get a second job.
5. Get a roommate. (You won't be there very much with the second job.) One bedroom? Sleep on the couch.
6. Do not use your cards for anything other than a tank of gas on a rotating basis to keep them open. PIF every month.
7. Pay minimums on all cards (except the one you used for gas that you PIF'd) and do as much as you can on the lowest balance card.
Knock off one card after another. IF you can do this, you will clean this up much faster than you can outrun a BK (within a few years). The point of doing it this way is to be responsible and also to keep your credit intact for when you might want to buy a house or go back to school, etc. I think that you can do it! Good luck!
@Anonymous wrote:Here's my story:
I'm a 24-year-old shopaholic. I have always been good with my money until recently. Lets say... the past year. I'm actually not looking for any personal advice since I already know I have a problem. What I want to know is if someone in my position can dig out of the mess I've made.
______________________________________________________________
1. 24-years good
2. Shopaholic bad
3. good with $$$ in the past good
4. Maxed out--very,very,very bad
I know you say you do not want personal advice but that is what you have asked for. So heres my input:
To answer your question I would say yes you can dig out but do you really want to. Workaholism, alcoholism, any "ism" can be daunting. Work on this first. Get your psyche corrected so you do not repeat the bad behavior. Seek counseling for your self admitted "ism". Seek counsel from older and wiser adults who can guide you. I would go to a grandfather or an older relative that I trust to help me. Allow them to take over your finances. Good luck.
@smallfry wrote:
40K in debt and growing at 24 years of age? Best advice I can give financially would be to go BK now. Stop paying on the cards. You will find yourself digging a deeper hole just by trying to maintain a line of credit to put gas in your car. Unless you change your mindset this will happen again. Sorry if this sounds harsh but step back and read what you wrote.
I'm curious to know if the OP purchased a car and trasferred the car loan to the credit card. I can't imagine a 24 year old running up that much debt... unless the OP lives in Vegas.
@DI wrote:
@smallfry wrote:
40K in debt and growing at 24 years of age? Best advice I can give financially would be to go BK now. Stop paying on the cards. You will find yourself digging a deeper hole just by trying to maintain a line of credit to put gas in your car. Unless you change your mindset this will happen again. Sorry if this sounds harsh but step back and read what you wrote.I'm curious to know if the OP purchased a car and trasferred the car loan to the credit card. I can't imagine a 24 year old running up that much debt... unless the OP lives in Vegas.
Message Edited by DI on 08-10-2009 06:34 PM
Nope. I got the car under an auto loan 1.5 years ago. Oh and trust me, I am not alone in this predicament. My friends are in the same boat (some of them), Some have parents who can dig them out. I'm just one of the few who can admit it. Doesn't make me any better. A lot of the early 20's in this day and age are going through BK. I just don't want to be part of that. Looks like I might not have a choice after all.
Thanks for all your help.
@DI wrote:
Do you mind letting us know how you end up with that much debt at your age? Did you take a lot of trips. May finance your education? Paid off medical bills?
Trips, Paid for school for the last year (why I did it, I DON'T KNOW), dentist bills, vet bills... my dog went through surgery. I had to save her. I'm sorry I may be stupid for doing that but I could not let her go. She's all better now.
@Anonymous wrote:
@DI wrote:
Do you mind letting us know how you end up with that much debt at your age? Did you take a lot of trips. May finance your education? Paid off medical bills?Trips, Paid for school for the last year (why I did it, I DON'T KNOW), dentist bills, vet bills... my dog went through surgery. I had to save her. I'm sorry I may be stupid for doing that but I could not let her go. She's all better now.
People's pet is a member of the family. I would have paid whatever to save my pet too.
Now with the dental bills, do you not have dental insurance? If your job doesn't offer it , I would find my own.
It would have been better for you to take out a federal student loan to pay for your education rather than charge it on a CC. But on the other hand, if you file BK , atleast the charges made to pay for school would be included in the BK. It wouldn't be included had it been a student loan.