Monday, May 10th, 2010 at
1:01 am
after a major financial upset me and my husband plummeted head first into the deep dark hole of debt. We now make 30k a year. We had a 4k credit card balance that we took care of through a settlement using our entire tax refund. All of our accounts are now in collections including 8k we owe to Honda after our car was repoed and auctioned for 2k (our loan balance was 10k) Total debt is around 11k. Problem is we have no money to pay back any of these debts. We live paycheck to paycheck. Most of the debt relief programs I’ve come across give you tips on how to cut your spending to make room for credit card payments. We have no room to cut any spending. We don’t buy anything unnecessary. We don’t eat out, go to the movies, buy clothes, etc. All of our income is spent on bills, gas, food, the bare minimum. I am going to school in the evenings now so working more really isn’t an option. I really don’t want to file bankruptcy but its starting to seem like the only choice. Any suggestions.
I will be finished with school (if I stick it out) in 8 months. Im in a sonography program and my expected income when I’m done should be around 65k. My husband is in school as well and will be done in about a year. At the end he will be making about 50k a year. The way I was thinking is if I wait until I finish school to pay it back it would be so much easier and wouldnt take that long. If I quit school and get another dead end job I will probally spend the next few years trying to pay it back. Should I just let the phone ring off the hook for the next 8 months and pay it back when I get done with school. I could pay a month. Or should I quit school and get a second job even if in the end it takes me longer to pay it back?
I cant quit school for a few reasons. Most importantly I have student loans. Not much but if I drop out I will go into repayment. If I stay in school I won’t go into repayment until 6 months after graduation.
so quit now, get a job, go into repayment (which will eat up a big chunk of my extra income)
vs.
finish school. Live at our current stardards for the first 6 months of working in my feild and use the extra income to pay back my debt until I go into repayment.
I guess I have come to the realization that as eager as I am to get this taken care of there just isn’t a logical way to accomplish it right now. I will be calling my creditor tommorow and telling them just that. Im already in collections how much worse can it get. They will just have to wait.
I’m young, I’ll bounce back and hopefully learn from my mistakes.
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