slynne
Well-known member
The advice that you need to change your habits first is sound. Try what I call "extreme austerity" for a bit. Make it a game. I find that makes it easier and even fun at times. How little can I spend? I start looking at EVERYTHING and finding ways to save money. If you have a job where you can pay off this debt in just one year by staying in the job, stay in the job! Try moonlighting and getting a second job which has the advantage of killing your social life and all the opportunities to spend money that comes with an active social life. Learn how to do free stuff with your friends (I plan picnics or go to art openings or stuff like that) The first step is to change your habits about money. Easier said than done, I know. I have done it several times and then reverted back to old habits several times too. I am just not good with money naturally. But I can tell you, it can be done even for those of us who aren’t frugal by nature. It can be learned!
Then, you can start looking at what to do next. Do not look at bankruptcy as a moral failing. It is not. It is business. Your bank would have zero moral issues about defaulting on a loan if it were advantageous for them to do so. Heck, our current president is famous for defaulting on loans! Rich people use morality to get poor people to pay their loans but those rich people somehow seldom seem to apply the same morals to themselves. Get out of that trap and make a business decision. The only question you should ask yourself is if it is financially advantageous to declare bankruptcy or if you would be better served negotiating with your debtors for reduced payments (but yes, this is counted as income at tax time so consider that when making a decision) or if it is better to pay the loan in full somehow if you can. A lot of communities have free debt counseling. If yours does, take advantage of it!
Also don’t worry. If you don’t need a loan or to rent an apt, it doesn’t matter what your credit score is. Yeah some employers check for that but do you want to work for someone like that? The bad credit score is just a number and one only meaningful in certain situations. Also, even with bankruptcy, you can be back with a good score within 10 years or so.
As for me? I am pretty bad with debt. I have a pattern of digging a hole and then climbing out of it. I am climbing out of it now again and have my credit card debt down to $5k which I expect to have paid off by the end of 2017 while also simultaneously saving for a van to live in. That savings is going slowly because I have an aging German car and just had to pay $3k in repairs. That has at least got me thinking about NOT getting one of those Sprinter vans and maybe I need to find a Ford or something. Which is another thing. No matter what you do, as long as you learn from it, you will be ok. You will be ok.
Then, you can start looking at what to do next. Do not look at bankruptcy as a moral failing. It is not. It is business. Your bank would have zero moral issues about defaulting on a loan if it were advantageous for them to do so. Heck, our current president is famous for defaulting on loans! Rich people use morality to get poor people to pay their loans but those rich people somehow seldom seem to apply the same morals to themselves. Get out of that trap and make a business decision. The only question you should ask yourself is if it is financially advantageous to declare bankruptcy or if you would be better served negotiating with your debtors for reduced payments (but yes, this is counted as income at tax time so consider that when making a decision) or if it is better to pay the loan in full somehow if you can. A lot of communities have free debt counseling. If yours does, take advantage of it!
Also don’t worry. If you don’t need a loan or to rent an apt, it doesn’t matter what your credit score is. Yeah some employers check for that but do you want to work for someone like that? The bad credit score is just a number and one only meaningful in certain situations. Also, even with bankruptcy, you can be back with a good score within 10 years or so.
As for me? I am pretty bad with debt. I have a pattern of digging a hole and then climbing out of it. I am climbing out of it now again and have my credit card debt down to $5k which I expect to have paid off by the end of 2017 while also simultaneously saving for a van to live in. That savings is going slowly because I have an aging German car and just had to pay $3k in repairs. That has at least got me thinking about NOT getting one of those Sprinter vans and maybe I need to find a Ford or something. Which is another thing. No matter what you do, as long as you learn from it, you will be ok. You will be ok.
