Newbie Question - Unemployed with 18k in debt and 100k student loan

[Anonymous]

Hi I'm not sure what to do here. Very overwhelmed. Looking for work, and not behind YET.

Just getting caught up but score is pretty low and will affect future employment - 620 score.  

Below is what I have.  I can afford about $2,600 a month for credit cards.

ANY recommendatons are really appreciated. I've been current on just about everything for about 3 months.     

Car loan min 221.12   total 8,583.00 

 Rent       525.00             525.00

  Medical Bill    270.00      

Health care insurance - 650.00 behind and $160/month. 

Credit card 1    min, 191.00 total bal    9,513.98  total available 10,500

Credit card 2   min 237.87 total due 6,572.00  total available 7000

Credit Card 3  - min   50.00 total due 815.77 total available 1000

 Store card 1   = min 115.00 total due    1,995.00  total available 2700

Store card 2 - CLOSED by retailer - min due  41.00 total due 625.00

  Store card 3 -  min 39.99 total due    39.99  total available $300

[llecs]

Is that $2600 after health ins., car, and rent? If so, I'd pay all the minimums and throw the rest at the lowest balance first. I'd also rip up the cards if that's an issue. Certainly put them on ice until you can get the balances back down to $0. If the $2600 is before the basics, then pay health, car and rent first and whatever is left over, throw at the smallest balances first. I'd also consider selling the car and look at getting revised health coverage if necessary. I'd also get any job right now to slow the losses. Delivering pizzas part time in the evening will net over $1000/mo w/ tips. I bet you can be debt free inside of a year.

[Anonymous]

Thanks for the advice. I guess I'm conflicted between the unemployment and starting part time work. 

My severance ends in July and I'm kind of freaked out about throwing money on store cards, when, without emergency fund, it might be wiser to throw it at the credit cards(versus retail store cards) in case of emergency. 

What are other approaches to tackling debt? Just focusing on brining balanced to 50% of total owed? If so, I could focus on the larger cards to do that.  

Gas prices are going up, but need a reliable car to get to job interviews,etc, and presently owe more than car is worth.

 I have a rider on the car note, where the car insurance company will take over payments for 6 months if I'm unemployed.

I don't want to initiate that until July when my regular salary ends.    

It's difficult trying to predict the future. I'm looking hard at work and applying to lots of places.  It does take time however.  

[llecs]

Instead of focusing on part-time, focus on full time. I bet if you sent out 100 resumes this week, you'd have an offer by next week, or at least interviewed a few times. Personally, I recommend both. Part-time is the easy part and then in the day pound on some doors to get that full-time. Once you secure a full-time and you feel safe at that job, then ditch the part-time if needed.

IMO, don't focus on utilization. If no income doesn't come in by summer, then util won't matter since they'd be charged off. Paying the lower balances off first helps mitigate the damage because paid off cards won't be CO'd.

Def. need a car. I recommend selling it if you are at risk of losing income. Without income, it'll be repo'd and then you won't be able to finance anything for some time to come. However, if you have 6 months in there with your ins. company, then confirm that and delay any decision for 6 months.