getting out of debt...?

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I'm in deep debt.

Debt due to unavoidable past circumstances. Non-transferrable debt. Debt I can't call bankcrupcy on. With credit obligations galore.

Debt of unpaid credit card bills, phone bills, utility bills, etc, each requiring hundreds of dollars of back payments to reopen. Debt that's going to shut off my (only) phone in three days. Debt that's snowballing as I type this.

Debt that's going to get me evicted, sans security deposit, by the end of next week. Debt that's left me without insurance, health coverage, unable to get the new license I need, debt that's royally screwed up my once-perfect credit.

I've called all the people and companies I owe money to. I've explained to them I want to pay, but can't. I've been told I don't qualify for 'financial hardship' because I'm not mortally ill. I've had the collection agencies start calling my parents, grandparents. I've borrowed all the money I can from family and friends.

And I've got a job. It doesn't pay well, but it's the only happy thing in my life right now. I've been told I'll advance to full-time in January. But there are a lot of nights between now and January.

I'm moving my stuff (all that I haven't sold off) to a storage locker. I'm forwarding my mail to work. I'm trying to find a short-term rent-free home. But...

What do I do?

― Broke Q. Pooreman (x Jeremy), Thursday, 12 October 2006 16:33 (nineteen years ago)

why can't you declare bankruptcy?

― ^@^ (map), Thursday, 12 October 2006 16:43 (nineteen years ago)

second job for a while?

― sunny successor (katharine), Thursday, 12 October 2006 16:49 (nineteen years ago)

what about one of those non-profit credit counseling lines? are they for real? if they are they'll probably have some good ideas.

― sunny successor (katharine), Thursday, 12 October 2006 16:51 (nineteen years ago)

yeah, i have one of those too.

(xpost) my debts are, by and large, not dischargable.

― Broke Q. Pooreman (x Jeremy), Thursday, 12 October 2006 16:51 (nineteen years ago)

what about one of those non-profit credit counseling lines? are they for real? if they are they'll probably have some good ideas.

it's my understanding that they exist to consolidate the debt, not reduce it?

― Broke Q. Pooreman (x Jeremy), Thursday, 12 October 2006 16:55 (nineteen years ago)

Consolidating can help you reduce monthly outlay, since you're paying finance charges to fewer creditors.

― The Bearnaise-Stain Bears (Rock Hardy), Thursday, 12 October 2006 17:00 (nineteen years ago)

i don't understand what makes a debt dischargable or not. or do you owe loan sharks money for gambling debts?

― kyle (akmonday), Thursday, 12 October 2006 17:01 (nineteen years ago)

oh I looked it up; student loans, and unpaid taxes

― kyle (akmonday), Thursday, 12 October 2006 17:02 (nineteen years ago)

Actually, has anyone had any experience with debt consolodators? It would be a huge help to me right now but they all seem so shady. Any reputable ones out there? (In the US.)

I got an offer from my bank to do it but then I read the fine print and they said they may not consolodate debts with the bank itself, but since I have two credit cards with them it would sorta defeat the purpose. I just want one bill to pay a month that will eventually pay down all my debt, instead of just paying the interest every month.

― Not as bad (Eppy), Thursday, 12 October 2006 17:05 (nineteen years ago)

I read this public service announcement on my radio show every week:

http://smartaboutmoney.org/

The Better Business Bureau has some info as well:

http://www.bbb.org/alerts/article.asp?ID=613

― molly d (mollyd), Thursday, 12 October 2006 17:11 (nineteen years ago)

No personal experience, sorry. I did a roll-your-own debt consolidation with a 5% APR credit card and some willpower.

― The Bearnaise-Stain Bears (Rock Hardy), Thursday, 12 October 2006 17:13 (nineteen years ago)

how much debt are we talking about?

― i've dreamt of rubies! (Mandee), Thursday, 12 October 2006 17:20 (nineteen years ago)

middle five figures

― Broke Q. Pooreman (x Jeremy), Thursday, 12 October 2006 17:22 (nineteen years ago)

move back in with your parents for a year.

― i've dreamt of rubies! (Mandee), Thursday, 12 October 2006 17:29 (nineteen years ago)

If nothing else, can you (start) pay(ing) everyone else and go into default on your student loans (if they're the biggest albatross)? It sucks, but it's better than being homeless.

― milo z (mlp), Thursday, 12 October 2006 17:31 (nineteen years ago)

I just looked it up and even when it gets to the point of garnishing wages, student loans can only take 10% of your check. I'd look at defaulting on them and letting them garnish your wages until you're on your feet again, and then declaring bankruptcy on your unsecured debt (or paying them off if possible).

It will wreck your credit, but by the sounds of it that's not an issue at this point.

― milo z (mlp), Thursday, 12 October 2006 17:36 (nineteen years ago)

You have to be careful with defaulting on student loans because they can sue you, and you're liable for collection fees. Can you get a forbearance based on your current income? That can buy you a year of no payments (interest rolls into capital, but that's the least of your worries).

― patita (patita), Thursday, 12 October 2006 18:40 (nineteen years ago)

Take your debt and divide it by 36. Earn that much money, then put it on red 22. Easy.

― Sadly, he will be the next Alexis Petridish. (Dom Passantino), Thursday, 12 October 2006 18:41 (nineteen years ago)

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