I need serious help... I do not even know where to start...

[Anonymous]

Hello everyone!  I am new to the forum, but am looking for some serious advice.  I am 33 years old and have a negative net worth.  I work in education (because I love it, of course), but it doesn't pay much.  I bring home about $2600/month, was working a second job that paid about $350/ twice a month, but that is coming to an end.  Even with the two jobs, I am not making enough money to cover my debts and find myself constantly borrowing from payday lenders to make ends meet.  I am also in a debt management program (OUTSIDE of the three payday loans I have outstanding), and I try really hard everyday not to break down in tears.  I do not have any savings.  I have an auto loan, student loans, payday loans, credit cards, rent, utilities, etc. that must be paid every month.  My current FICO score is 608 (FICO Score 9, whichever that is)...

My Transunion FAKO score is 611, and my Equifax FAKO is 613. 

How can I turn this around??  I am looking for a new main job and another 2nd job right now, but I need more timely solutions.  If I need to break things down further, I can if someone has specific questions.

I would say that I am in about $20,000 worth of debt, including my auto loan (not including student loans).  I can't even begin to think about student loan debt right now. 

Please help...

[Anonymous]

Sorry to hear that OP. Do you have car? If yes, try to do Uber or Lyft. You can make easy min $200 a day as part time job x 6 days = $1200 a week ---> GROSS total $4800 a month as an extra income. Yes, You can make more than that if you willing to work for 7 days a week + with extra hours driving, but it depends on your situation. Good luck and wish the best for you.

PS: plus sometime as new driver, they have extra "bonuses" $$$ if you make certain number of trips, so for the first month, you will be easy making gross $5000 or more. Lets put this way: You will make easy extra income about $4000 a month  

[Anonymous]

Welcome to myFico!  I also had an issue with student loan repayment being too expensive!  You should try and apply for the Income Based Repayment Program.  I earn about the same monthly as you do, any my repayment amount has been $0 for the past 3 years!  

https://studentaid.ed.gov/sa/repay-loans/understand/plans/income-driven

I hope you check this option out and good luck!

[DollyLama]

Is the debt management program have a contractual agreement with creditors to accept X amount a month? Are these the credit cards they are paying, or do you have credit cards outside of the debt management program? 

What percent of your net income is rent as of today?  Have a roommate or just studio apartment without frills of clubhouse, gym, etc?

How much longer do you have on your car loan? 

Do you subscribe to any frills, cable, gym membership, tanning salons?

How much do you spend weekly or monthly on social outings, concerts, restaurants, movies or other activities?

What have you done to scale back any frills you have had? 

I honestly wouldn't worry what your score is now, as you are more concerned about making ends meet and 1st priority would be the payday lenders, so the interest you are paying bi-weekly/monthly can be cash in your pocket. 

Are the student loans in deferment, are they Federal loans?

Would you be open to moving in with family if feasible for a year to pay the debts down/off? Or possible to get a roommate if have a 2 BR? Can you tutor after hours or during summer?

[Anonymous]

Hi!

Thanks for responding and giving me an option.  The money sounds good, but I am so paranoid about being an Uber/Lyft driver.  Plus, my car needs some repairs right now, so I do not even know if that would be feasible.  I have thought about it, though...

*sigh*

[Anonymous]

Thank you!  I am definitely going to give this a try.  They have been in repayment and I have not said a word to them yet.  I need to get ahead of that before it becomes a beast of a problem.

[Anonymous]

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@DollyLama wrote:

Is the debt management program have a contractual agreement with creditors to accept X amount a month? Are these the credit cards they are paying, or do you have credit cards outside of the debt management program?  -- Yes.  The $20k includes the debt they are paying.  I have payday loans and a Target credit card outside of the program. 

What percent of your net income is rent as of today?  Have a roommate or just studio apartment without frills of clubhouse, gym, etc? --My rent each month is $875. I have a 1bedroom.  It does have a clubhouse, gym, gate, etc.  I have been living there for about 5 years now.

How much longer do you have on your car loan?  -- I will actually be done paying for my car in April 2019.  I owe $4035 on it.

Do you subscribe to any frills, cable, gym membership, tanning salons?  --- No.  I do not subscribe to anything extra.  I only have cable/internet--I only pay for local channels because I use my Firestick to watch tv.  There is a service I use that I pay $20, but I am not in a contract so I can stop at any time.

How much do you spend weekly or monthly on social outings, concerts, restaurants, movies or other activities?-- I used to spend A LOT, but have since cut that down extensively. 

What have you done to scale back any frills you have had? -- I eat at home and bring my lunch as much as possible.  I have learned to say NO to my friends when they ask about going out to eat or doing anything extra.  I have cut out all of my beauty rituals (nails, etc).  I really have to THINK before I make decisions now.  It hurts, but I know it is necessary.

I honestly wouldn't worry what your score is now, as you are more concerned about making ends meet and 1st priority would be the payday lenders, so the interest you are paying bi-weekly/monthly can be cash in your pocket. 

Are the student loans in deferment, are they Federal loans?  -- I have private loans that are not in deferment and my federal loans were in deferment, but are not anymore; however, I am going to contact them today to discuss the income plan mentioned above so I can possibly have a $0 payment.

Would you be open to moving in with family if feasible for a year to pay the debts down/off? Or possible to get a roommate if have a 2 BR? Can you tutor after hours or during summer? -- I cannot live with family right now for a lot of different reasons.  My job is about 2 hours away from the closest relative, but that's just one reason.  I have a 1bdrm.  My SO lives in Georgia and I live in Alabama.  I was trying to find a job in GA, but that has been a slow process.

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[Anonymous]

I appreciate everyone's replies and support.