Is bankruptcy an option at 24?

[puppyandcats]

Cards: 

• $2,500/33,000 NFCU More Rewards
• $6,800/8,000 Discover IT
• $0/3,200 Citibank Costco 
• $0/1,100 Capital One Savor
• $0/1,000 NFCU More Rewards 

Consolidation loans:

• $15,500 NFCU 
• $13,500 Discover

Student loan balance: $20,901.00

Car note: $24,000 (upside down trade in, but paid in advance until 04/2024)

Income: $65,000 before tax.

Credit scores in the low 600s. 

FTX collapsed and I have not recovered. Medical debt popped up and I swiped my credit card, then applied for a personal loan to consolidate. I lost my job and found a new one quickly. I have nothing to sell aside from my car. I truly have nothing to show for the debt, no electronics, purses, watches, ect. Nothing. 

I feel dizzy constantly. My rent is paid on my credit card for now. I hate "giving up" but I don't know why I'm suddenly unable to budget or save properly. I keep messing up contracts and walking away with terrible deals. I wasn't like this before. I don't know where my mind has gone and I don't know how to get out of debt. 

[GZG]

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@puppyandcats wrote:

Income: $65,000 before tax.

 My rent is paid on my credit card for now.

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where is your money going?

figure that out first, this doesn't seem like BK, this seems like get your headspace right so you can start spending within your means and start paying down your debts

[puppyandcats]

I'm honestly not sure. I went around my apartment and added the values for everything.

Living room:
$600 Couch, $100 TV, $100 Rug, $220 Plants.

Kitchen: 

$200 Pot, pans, dishes. $1,600 appliances. $200 table, chairset. 

Bedroom/Office/Bathroom: 

$2,400 Mattress. $975 msc. $2,200 collectors items that have since been broken. 

$1,500 est wardrobe total, including shoes.

$790 bathroom msc.

Pet care:

$700 msc. $80 monthly food, possible additional $400 monthly for vet medic.

[GZG]

not the stuff you bought

between july 1st and july 31st, how much money did you make and where did that money go?

find every dollar you made and compare it to every dollar you spent

[CreditCuriosity]

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Why BK?  As I am reading it about 37k in unsecured debt.  I doubt you would qualify for a bk7 based on salary.  Cut up CC's and get a 2nd job if needed to start paying down some of that debt.  BTW if you burn NFCU you will never be eligible to have a loan with them again just a FYI to also consider unless they are made whole.

[Webspry]

No way I'd be filling For low of amount and your current income. You need a plan! You need to stop spending on anything you don't absolutely need. You need to get some weekend GIG work. Learn to pay yourself first, as in saving money. If you have any specific skills list your service for hire on local boards, facebook marketplace, etc. even $100 a month will cover at least one of your lower card payments and free up cash for another. Don't eat out, etc, cancel all monthly subscriptions. These small amounts add up. Your new game is to see how little you can live on for the next 12-24 months. I did this when I was much younger, and got out of a larger hole than you.it can be done. 7 years is a long time. A few years to dig out is well worth it in my opinion. Keep us posted. 

[SouthJamaica]

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@puppyandcats wrote:

Cards: 

• $2,500/33,000 NFCU More Rewards
• $6,800/8,000 Discover IT
• $0/3,200 Citibank Costco 
• $0/1,100 Capital One Savor
• $0/1,000 NFCU More Rewards 

Consolidation loans:

• $15,500 NFCU 
• $13,500 Discover

Student loan balance: $20,901.00

Car note: $24,000 (upside down trade in, but paid in advance until 04/2024)

Income: $65,000 before tax.

Credit scores in the low 600s. 

FTX collapsed and I have not recovered. Medical debt popped up and I swiped my credit card, then applied for a personal loan to consolidate. I lost my job and found a new one quickly. I have nothing to sell aside from my car. I truly have nothing to show for the debt, no electronics, purses, watches, ect. Nothing. 

I feel dizzy constantly. My rent is paid on my credit card for now. I hate "giving up" but I don't know why I'm suddenly unable to budget or save properly. I keep messing up contracts and walking away with terrible deals. I wasn't like this before. I don't know where my mind has gone and I don't know how to get out of debt. 

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I agree with the others that bankruptcy is unnecessary.

My advice would be:

-stop using the credit cards

-reduce spending

-get a part time gig of some kind to make extra money ( or put in more hours on your job if you can earn more money that way)

-keep paying down credit cards and loans

The expense that leaped out at me was the veterinary care.

[citymunky]

You need to track your speading (apps like Nerdwallet, Empower and Mint are free) and cut out with is unnecessary.  Your monthly 

 vet care hig. As someone who owned dogs, cats, retiles, birds, fish, you name it, 

your monthly vet care high as @SouthJamaica @SouthJamaica pointed out.

$400 per month equals $4800 per year (enough to pay off your both your CCs in two years). 

I would start by:

1) Saving $1k for emergency fund, put in CD or HYS.

2) Pay down the Disco CC, your current credit UTI is very high, than focus on Navy Fed CC. 

3) Than focus on loans.

[Shooting-For-800]

Make a real budget and go through hell for a year.

Then make a decision.

You have good income, can you work more?  Side hustle?

Before BK, try to get all your rates lowered, payments lowered, balanced lowered.

No dining out, no cable, no new clothes, no new anything.

Rarely are student loans discharged BTW.

JMO