I Don't Know How to Manage My Credit Card Debt?

Question

I recently asked my roommate to move out, she did not pay rent for one year, and now I am worried I won't be able to pay my bills. I am leaning playing with the idea of letting my credit cards go, not paying them. I bring home enough money to have about $180 left to live on for two weeks, but it does not seem to be enough money with gas prices etc. I know I did it for one year but now that I am alone it is frightening. Any suggestions. How do other women do it after a divorce?

Answer 1

If you don't pay your credit cards, you will ruin your credit and it's not worth it at all. You can find a new roommate, get a part time job for a bit extra income, cancel your credit cards so you aren't incurring anymore debt.

Answer 2

Maybe it is possible for you to get another room mate. That's what I would do. Put ads up in public places (Noticeboards at universities are a good place to start) and make sure you ask them to have at least 3 references that you can check. Explain that they are required to pay half the rent and half the bills.

Do not use your credit cards. That is a dangerous road to go down, because your income is so low you might not be able to pay them back again. If that happens, your assets might be seized (car etc) and then you are really in trouble.

Get a part time job if possible. Get a crap one that nobody else wants. I used to clean filthy nightclub toilets. The money is pretty good, the hours are 'after hours' and fit in with other jobs, and you're usually only there 2 or 3 hours.

Use your car as little as possible. Buy generic brands of everything. Buy things in bulk, (washing powder, toilet paper) and try to find a cheap green grocer (sometimes they are cheaper than a supermarket, but shop around) and get vegetables there. Processed foods are much more expensive than fresh.

Cut meat out of your diet. Stick to eggs. This will save you some money.

Make a budget and stick to it. No luxuries. If things are as dire as you say, you can't afford luxuries, not even the internet. No magazines, dvds, new clothes etc.

Go to the library and borrow some books on money management. There are heaps of them, and many are written specifically for women. It is very empowering to take control of your finances.

Finally, go through your house, and find stuff that you don't need, and either have a garage sale, or sell it in the newspaper or on ebay. Some newspapers have cheap ads if the item is valued at under $100. People will buy all sorts of things -- old records, shoes, school uniforms, furniture, electronics.

If you need some emotional support and some more advice, just email me. I have lived on bugger all for years, and now I expect to have my first house paid off in 5 years. You can do it.

Answer 3

You had a roommate who did not pay rent. So now you have space for another roommate who, presumably, would pay rent. This should improve your finances. Unless you miswrote your question and the former roommate did pay rent. Either way you need a new roommate to help with the bills.

$90/week is very little but you've been doing it. Maybe you could moonlight or get a smaller more affordable pace to live. Whatever you do you cannot bury your head in the sand and pretend you don't have debts. I'd advise you to stop using the cards and pay as much as you possibly can, whenever you can. Good luck.

Answer 4

I wish there was a way you could look at this question ten years from now.

I know you need IMMEDIATE help, and you don't want to know about ten years into the future.

The reason I'm telling you this is because you need to devise a plan, and stick to it.

It may not be worth your while to get rid of your credit cards.

I have a dozen, and some with high balances, but none maxed out, and every bill I manage to pay more than they ask for.

What you need to do is either get another roomate who will pay, or find some other means to either earn more or receive additional income.

I invest along with paying bills. I have used credit cards to purchase stocks, and then pay off the cards slowly from the money I made investing.

What I am getting at is that you need to do many things financially to give yourself a long range plan that gets you excellent credit (by proving you pay more than your minimum, some of the time), and gets you securities to use for buying property or for other large future expenses.

By destroying your credit cards and retreating, you will only ruin your future.

By going to a professional, you will pay large fees for nothing.

By devising your own plan of paying down debt, investing with your employer's plan along with your own broker...you will eventually become financially fit.

It will take a while, but running away from obligations is not the answer.

There are ways...you just need to find them.

Just beware of those with easy ways out.

They will rip you off.

Credit cards are here to stay, you just need to find ways to manage them.

I have and you can too.

Answer 5

First, learn to live frugally. Use only florescent lights, and don't use even them if you don't have to. Night lights are an inexpensive way to light a room, such as a bathroom or kitchen, enough to see what you're doing. I even read by a night light. I cut my electric bill almost in half just by changing my lighting habits! Don't eat out, or order in, or buy takeout food: prepare all of your meals yourself. Try to buy necessities (and everything else) when they're on sale. Don't put anything on your credit cards unless it's absolutely necessary: if you can't afford to pay for something, you can't afford to have it.

See if your credit card companies will lower your interest rate. Let them know that you'll transfer your balances to cards with lower rates if they don't (this actually works). You can even request that they remove penalties for paying late, as long as you don't make a habit of it.

Make paying off your debt your number one priority because, until it's done, your money isn't really yours. Think about how nice it will be when you don't have debt, and work towards making it a reality.

Oh, and don't get anymore roommates that don't pay their own way.
.

Answer 6

You need to contact your credit card companies now -- before you are late and wreck your credit. A lot of people face the same issue, and the credit people have plans to help you. You can also go to one of those credit counseling places. However, DO NOT go to one that charges. They will offer support and ideas. Look in the phone book. But, don't wait to get yourself together. A bad credit history lasts a long, long time.

Answer 7

Step 1: You need a WRITTEN budget for EVERY dollar you make and where it will go. Until you actually know where you stand, NOTHING will help.
Step 2: You probably need to cut expenses somewhere.
Step 3: You may need to get an extra job until the credit cards are paid off.

Answer 8

Give you credits cards to someone!
Be grounded and do with what you have.
Ride the bus, use a bike(i hold 2 jobs and ride a bike)
You are suppossed to ride your financials not the other way around.
Divorce? nah! dont ground yourself with things like that!
You just gotta move it!!!

have fun! and welcome to the singles club! Is always fun here!