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Stuck and need some advice

9K views 35 replies 23 participants last post by  frugalwarrior2 
#1 ·
Hello, this is my first post on the forum so bear with me as I will try to introduce myself and explain my situation without being to lengthy. I am a 28 year old single male living back with my parents to help after my father had an unexpected surgery (about a year ago) causing him to get fired resulting in loss of all income. I have my A.A. degree (which is pretty much useless) and working for $12 an hour which is about $1500/month after taxes. My current monthly expenses are...Credit card min payment: $300, Student loan min payment: $315 Car insurance: $55, Food: $250, Rent: $500, Gas: $200. I have a simple excel spreadsheet which I have followed for one year with comparing/tracking my expenses and income and it seems there is no way out of this. After a year paying the minimum is getting me no where and I'm already negative $120 each month. I don't spend extra money on wasteful things as all my entertainment and hobbies are free activities. I have not spent any money on Christmas's or Birthdays or bought anything extra for the past 2 years (impossible when your -$120 each month to start). I have health and dental insurance (I need cavities filled) and can't afford to go so lets hope I dont get sick lol. Do I live in my car for a while to save on rent? I am open minded to all suggestions and help to get me out of this hole. Where do I even start??
 
#2 ·
Are you paying the $500 rent to your parents? Maybe they will negotiate a slightly lower amount - maybe $450?
You're spending $250 a month on food - you can probably cut back on that - it seems a little high for one person. Or are you buying some of the food for your parents since your father isn't working?
Call the credit card company or companies and ask if they can lower your interest rate or work out a payment schedule that is less per month. They might say no, but it couldn't hurt to ask.
Could you pick up a second, part time job?
Is the $200 gas just for work? Or is some of it going towards "free" entertainment and activities? If so, you should be able to reduce that amount.
 
#3 ·
what city are you in? 500 a month to parents seems excessive. what are rents there where you live?

in houston texas, i charge my housemate 300 (utilities paid).
 
#6 ·
Thanks for the suggestions! I think it would be possible to find a cheaper living situation. I live in a rural area in north Florida where I currently travel around 60 miles round trip to work ($200 just for work in gas). I work in a college town and the cheapest rentals you can get are around $450/month. The downfall to cheap rentals in the town where I work is that I would roommate with 3 other college students and live in a community with partying college kids. I really don’t want to go to much cheaper on food because then I would be forced to eat poorly and I don’t function properly without a healthy diet lol. I can justify paying a little more toward eating healthy and fewer trips to the Doctors office.

So if I were to live closer to work I would save about $50/month on rent and about $150 on gas. I could try to get down to $200 a month on food but it’s hard to eat right for under $50 a week. I also forgot to mention my cell phone expense which is $25/month.

With these changes my expenses go down to $1395/month if I calculated that correctly. This leaves me with $105 left over. I would have an extra $1260/year but it seems like nothing when every year I max out my $3000 in student loan interest deductions (I pay at least $5000/yr in interest alone). I have called all student loan and credit card companies and everything is set at the lowest rates possible. I recently did a balanced transfer a large sum to a 0% interest account but still at a high monthly payment. My credit is good, never been late on a payment on any account but it’s not helping at all.

I have been looking for a second income but is very hard to coordinate another pt job while working 9-5:30 Mon-Fri. I was lucky enough to get the ft job I have now only because my friend got me a job. I applied for 6 months for ANY job and couldn’t get a single interview. I would love to work weekends as I look every morning for that 2nd job that coordinates with my main job.
If I were to land a 2nd part time job I think the max I could make would be around $500 extra a month. I would be working 56/hours a week 7 days a week. This gives me at an extra $605/month. It would still take me around 15-20 years to pay off my debt and living a pretty sad existence lol (and have nothing to show for it). I would be debt free when I’m close to 50 years old and this is going off a budget with the bare minimums not including any extra spending, car trouble (been without ac for 2 years), or getting sick and all the other unexpected expenses in life…

Sorry to rant and have such a long message but it’s just hard to see any light at the end of the tunnel.
 
#7 ·
It might seem like an odd time to ask yourself this, but I think it's the best time to ask it. What do you want to do? Working 55 hours a week won't seem so bad if you know it's temporary and there's something at the end of it. What did you study and why? Seems like you have a lot of loans for a two-year associate degree (I'm still dumbfounded at the cost of education here in the States). Any chance you could go back to school and get a Bachelors? It's probably bad etiquette to suggest more debt to someone in your situation, but you're still young enough to invest in a life-change.

Without being too intrusive, what is the situation with your father. Is he likely to recover and be able to return to work? If not, what are his options for staying independent, or do you think you'll have to care for him now for many years? I'm asking because I'm wondering what your options are for moving somewhere with better prospects and job opportunities, or returning to school.
 
#8 ·
Does your father have any income or are you sole provider? Is he looking for work?

What mileage does your car get? Can you sell what you've got and get a more efficient car? Or cheaper insurance?

You certainly can eat healthy on less than $50 a week. You may not always get to eat what you want but you can make nutritious meals for less.
 
#9 ·
My father can’t return to work because he has no short term memory (brain surgery) but should be getting enough money temporarily to get by with disability and I am able to be completely independent. I have a $2500 Saturn which gets around 30-35mpg. For school I have my A.A. in business admin and went broke trying to finish my bachelors in marketing. This is not at all what I wanted to do but everyone said you had to go and get that 4 year degree even if it required going in serious debt with student loans. Hard lesson learned and I will never take out another loan because it has ruined my life. I was young and ignorant and actually shouldn’t have listened to what I was told about college lol. Can’t go back in time though…

I don’t mind working 55 hours a week but this wouldn’t be temporary because I would have to do so for around 20 years just to put me back at zero balance.

Delivery pizza is too risky because auto insurance does not cover while delivering if I get in an accident. The only asset I have is my car and my clothes so I can’t really sell anything I have…

Going back to school is not an option it costs way too much even at a State University. I don’t have an extra dime to spend much less tuition and books…not to mention it would be tough to work 55 hours and do decent in school. Again, loans are not an option!

If you have any suggestions on how to eat healthy for under $50 a week I would love some ideas.

Thanks again for all the quick replies!
 
#10 ·
I don’t mind working 55 hours a week but this wouldn’t be temporary because I would have to do so for around 20 years just to put me back at zero balance.
At this point, you just need to get started. In my experience in working toward long term goals you can always be sure of one thing: things change. Things may change for the better: you could find a better paying job or get a raise or decrease your costs or inherit a pile if money. Or the could change for the worse: costs could go up, you could have to replace your car, etc. There is absolutely no way you can accurately predict what will happen in the future so just get started.

My journey to reach several financial goals began three years ago. There was no possible way the numbers would add up at that point for me to accomplish what I needed by the time my husband would reach retirement age. But I started anyway. Over that time, raises have happened, tiny windfalls have come along, a cancer treatment has been paid for...you get the idea. The end result is that all the little pieces have come together for us to meet our goals.

You are young. You have a lot of ups and downs to go. Just get started with something small so you can see that you do have the power to get started accomplishing your goals. You really can do this. Forget about it taking xxx years. That isn't helping you right now.

Kind of off topic: how close are you to getting your bachelor's degree?

Respectfully,

Sally
 
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#11 ·
Thanks for the encouragement…I guess my only option is to not think about the future, try my best to get ahead, and hope for the best!

I have about three semesters left to get my Bachelor’s degree if I were to go full time. I would have a Bachelor’s in Information Technology which is a field I have realized I do not want to be in. Also in the IT field, having a Degree isn’t as valuable as knowledge/experience.
 
#12 ·
You just need to get the ball rolling. Set a goal. Meet that and then make another.

Say...first goal...emergency fund....have any money incase you car breaks? Save up 500 for emergencies. Count every penny. Focus only on this goal. D not look at your debt only pay minimums until goal is met.

Next. Lowest debt. If it's too big break it down to 1000. Once you get that, send it to debt. Start again.

You need money. Birthday coming up? Ask for cash. No time to be anything but straight forward with people. Cash is king. Put word out you're up for odd jobs for cash on weekends. Know how to paint (or can you learn?)...mow yards...walk dogs. You're the guy!

Once you give you ideas momentum they become reality and they start to surpass your expectations.

Don't go back to school for a degree you won't like. Instead work hard. Things will change. Nothing ever stays the same. If you put effort in you will be rewarded eventually.

How much debt do you have? Or did I miss that.

Check out Dave Ramsey. Check out other posts on here on saving money and being self sufficient. We have lots of members who are very successful with a smaller income.
 
#13 ·
If you want to finish you degree, look into WGU. It is all online.

Look at Craigslist for one day/short-term/few hour long jobs. There are tons of people needing help and are willing to pay for that help. I know of a mom who has found three or four jobs through craisglist that are a few hours a week helping out other families with stuff like laundry or kitchen prep. One job is for an elderly lady who just needs someone to come in and do her laundry and pick up a little. For one job, she comes in for an hour in the mornings to help with kitchen prep and getting the family out the door to school and work. There are jobs where someone needs help moving something or help with a yard project.
 
#14 ·
I am fairly handy in many areas and I'm sure I could find a few odd jobs to help. I think that's why I've had trouble finding out what I really want in life because I'm good (and love) to many things and can't commit to specific career.

I owe total around 12k in credit cards and 24k fed student loans and 33k in private student loans.
 
#17 ·
So, after reading all this, in what way do you live with your parents? What kind of help do you offer them? How many hours are you spending caring for your dad?
I agree, get a part time job if you don't have other commitments. And you really can eat well for less than $50.00 per person per month. Again, if you do live with your parents, do you eat totally separate from them?
 
#18 ·
So, after reading all this, in what way do you live with your parents? What kind of help do you offer them? How many hours are you spending caring for your dad?
I agree, get a part time job if you don't have other commitments. And you really can eat well for less than $50.00 per person per week. Again, if you do live with your parents, do you eat totally separate from them?
 
#19 ·
I am in my 40s and have had many careers because like you I like to try lots of things and I couldn't commit to just one. This made studying hard as I would be halfway through a course and decide I didn't want to do it anymore. What I have learnt is that I don't want to earn a low income and suffer in poverty either. Wouldn't it be better earning big bucks in a job that required the use of your degree (was it IT?)? Once you have your degree you will have more freedom. You can head towards teaching, marketing, business, non-profit organisations, whatever. If you have most of your experience in a $12 per hour job you won't have much room to negotiate towards other careers. Even if you have to work around the clock, continue studying (even part-time). You have to invest in yourself and you don't have far to go before you will have more freedom. Good luck!
 
#20 ·
Have you tried calling student loan to lower that amount? Student loan for almost $60K will take many years to pay off, even if you made more a month. Give them a call, see what they suggest.

If you were to move closer to work and save on gas, and lower rent, maybe you can split food costs with roommates? Cooking for more people and splitting cost can be less than cooking for one. Is there any ride share from anyone at work you can utilize?

If you work 9-530, and drive time( i assume from 60 miles) , part time job during week might not work, but weekends would be somewhere to start. My boyfriend just got a job 2 days a week at local car dealership to deliver parts. He makes $100 a week extra working about 12 hours. Its not much, but its extra. Bartending Fri and Sat might be something to look into, or being waiter at local busy restaurant. Store need stockers, and maybe look into grocery store, so maybe you can get discount!

Also I just called my credit card company after I just realized my interest rate was 25%! They said I qualify for lower rates, but to call back tomorrow to talk to someone. Maybe do that, or open a new credit card that has 0% transfer rate for a year to pay off card?
 
#21 ·
I'm a college professor in Daytona Beach and I pay my students $15 an hour to do odd jobs (weeding my yard, doing deep cleaning in my condo, etc.) Are you sure you are on the income contingent student loan payback? Your payment sounds high for your income. Check that out. Have you looked into grants and scholarships or work-study nighttime jobs to pay for the rest of your degree? Have you talked with your employer about advancement opportunities/overtime/etc. Have you networked with others in your field of work?
 
#22 ·
Moving to a college town... typing, proof reading and editing student papers? If you work M-F what about lawn care on the weekends or house cleaning? Three to four hours on Saturdays each week would add up quickly.
 
#23 ·
Thanks again for all the replies/suggestions…I don’t eat completely separate but we try to share since we are all in a financial pit. I still don’t see how someone can eat healthy for $50/week, I can’t get it to add up.

I would love to continue studying but again I am at a loss monetarily each month already so it will not be feasible to get back into school.

I have called all credit card and student loan companies for the past year to try and get payment lower but they are set to as low as possible. Federal student loans are income based so I don’t pay anything but interest is steady racking up. Private student loans won’t budge (I’ve called a good 5x in the past year) on lowering my monthly payment. Credit cards won’t lower my interest rates even though on my credit report I’ve never made a late payment EVER! I have a chase card that is 29.99% and they won’t lower it saying that it is a competitive market rate lol ( I don’t know of anyone getting a 30% return on investments). I had to take out what I had in my 401k to pay off another card.

My only other option is to find a pt job but again I’ve applied to everything you can imagine and still having trouble finding pt work that will fit with my ft job. I will continue to look and I thank everyone for the suggestions for extra income.

Being realistic I am looking at the best situation of finding part time work in addition to my full time job in order to pay everything to be back at a 0 balance at the age of around 50. (This is on a budget working 60hrs a week hoping that I don’t get sick, my car doesn’t break down and nothing else extra). Basically going this route I will never own a home or be able to afford anything on credit so what is the point of living a poor life just to keep up a fake number (FICO score) in which I can’t use?

Sorry if I sound like a negative Nancy but I have run through every possible solution and in the end it still doesn’t add up for me to get ahead in life.
 
#24 ·
Just a few extra things…I was talking with my parents and they will risk losing everything if I am not helping out. In the next couple months all savings will be gone. (They went from over $100k/yr to zero income after my father got fired while in the hospital)

I was looking at my credit report and while there is not a single negative mark in my 10 year credit history, my balance actually went up on my private student loans after paying about $4500 in a year. Very frustrating to pay everything you have to have for the balance go up.
 
#25 ·
This might be a crazy idea but have you considered posting a situation wanted ad in the paper stating that you are a such and such aged male blah blah non such and such looking to share expenses of lodging in a non partying atmosphere?

There may be another male or 2 out there looking for and being in the same boat you are? It might mean moving in with someone or starting from scratch and hunting for lodging. You could try and and get closer to work to save on fuel and car and tire wear and tear.

I hope your situation improves.
 
#26 ·
If you get another student loan and go back to school all your loans go into forbearance while you are enrolled. Sounds backwards, but it could lighten the payments load for a year and give you the chance to get your degree.

Chase won't lower your rate, but you can find a card with a lower rate and transfer your balance. You may even be able to get one that offers 6mo or a year with no interest.
 
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#27 ·
Unfortunately only my federal loans allow me to go into forbearance but I am already on the income based repayment plan with them. The private loans will only let you go into forbearance up to 4 years after you start repayment (this time period has expired). I have been paying the private loans the past couple years because they don't offer anything else but to pay. I was able to get several other high interest rates over to a new CC with 0% interest until next year but I still have a CC at 30% interest.
 
#28 ·
Do you have one credit card or several? What is the balance owed on credit cards? You might benefit from bankruptcy depending on what you owe. That would free up $300 to go towards your living expenses and student loans.

Since you are a decent handyman, maybe you could find somewhere to live rent free in exchange for handyman or lawn/garden work on weekends. Or a live in situation where you help an elderly or handicapped individual up in the morning and to bed at night. A lot of times elderly can manage just fine but feel more secure having someone in the house overnight.

I would suggest you make a written list of specific problems you need to solve and then brain storm pro/con solutions. Is your primary goal (a) increasing income? (b) Going back to school? (c) Paying down debt? (d) Continuing to help support your father? Do you need to do (a) and (c) before doing (b)? Does (d) require you to not do any of the above?
 
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