Don't let it get you down.
We are in that same boat right due to some unforeseen medical expenses and vet bills.

I totally understand the tight job market.
After I got back from AFG I put in tons of apps and could not even get a call back.

I have heard all the same stories about the job market being hot and they cannot get enough people but it really depends on where you live. I could not buy a job in the Richmond, VA area or even get a call back.

Hang tough and try not to let it get you down.

Unless you've got some seriously high interest rates on those credit cards, $13k is not difficult to maintain by paying minimums. Sound financial decision? No, but sounder than not paying.

Sounds like it's time to start spamming resumes, including to positions you never thought you'd apply to. Career management is out the window at this point, and so is pride. If the best you can get is as an Uber driver, that's income you don't have right now.

Ain't gonna be easy but it's doable and way less miserable than stepping in front of a bus.

It sounds like you have a cash flow problem, not a debt problem. If that isn’t the case and you really do have a debt problem along with having all your cash tied up in a house, then there may be another thing to consider. I’m not a lawyer and not familiar with the laws in your state, but personal bankruptcy may be a useful option. Honestly, 13k doesn’t sound like enough to justify it, but if things are a worse than just that and you really don’t have any cash or assets aside from the house, it may be something to consider.

Look at it this way: if you just sell the house, you immediately pay out some portion of the proceeds on debt or bills. If the house is really all you have, it may be possible to declare bankruptcy and still keep the house. In that situation you could STILL end up selling the house after bankruptcy to generate cash, but you could dispose of the debts first so you keep more of the cash.

There are obviously consequences to doing this, like being extremely difficult to qualify for loans or credit for several years, as well as the stigma associated with it. I won’t pretend there is no shame in going bankrupt, but sometimes it is still the right choice. The only reason I bring it up is, if you are selling the house to generate cash, you don’t want to immediately spend so much of it on debt that you still don’t have enough money to stay above water till things turn around. There is no sense in paying off your creditors and leaving yourself in a position where you are just going to go right back into debt.

Again, 13k doesn’t sound like a big debt problem. It sounds like all your money is tied up in a place where you can’t spend it: the house. If that is the case, then everyone else is correct. The solution to that problem is selling the house. If your debt is worse than just 13k, then maybe consider getting rid of the debt before you sell the house. Either way though, it looks like you should probably sell the house.

- Bret

quote:

Originally posted by sadlerbw:
Either way though, it looks like you should probably sell the house.

I wonder if many of you aren't missing a very important aspect of this situation: The house is paid for. That means his fixed expenses for housing are property taxes, homeowner's insurance and utilities.

I don't know about his home's situation, but in my wife's and my case that would amount to less than $400/month. Can you even rent an apartment for $400/month anywhere these days? I mean that's not in a slum?

Or am I missing something?

quote:

Originally posted by ensigmatic:

quote:

Originally posted by sadlerbw:
Either way though, it looks like you should probably sell the house.

I wonder if many of you aren't missing a very important aspect of this situation: The house is paid for. That means his fixed expenses for housing are property taxes, homeowner's insurance and utilities.

I don't know about his home's situation, but in my wife's and my case that would amount to less than $400/month. Can you even rent an apartment for $400/month anywhere these days? I mean that's not in a slum?

Or am I missing something?

This could allow him to move where there more jobs in his field. Also he could downsize saving on monthly taxes, maintenance, and utilities. Then take proceeds and pay off debt. Still have a paid for place, but lower ongoing expenses and no debt.

I'm sure no one was suggesting selling the family homestead to blow on hookers and blow. Maybe take $25,000 pay off debt, cover moving expenses and slush fund for job search. Take rest and buy slightly smaller.

Sorry to hear you are struggling ClubLeaf.

The very first step to getting out of debt, is to come up with a strategy to stop adding to it. It's hard to empty out the bucket, if you keep adding water to it, so to speak.

Dave Ramsey has a good strategy that has supposedly helped a ton of people get out of debt. This is the quick version.

The first step is to generate $1000 as fast as possible. Let me repeat: As. Fast. As. Possible. This may mean picking up side jobs, second jobs, third jobs, selling things you don't need, or even things you do need. Drive an Uber, deliver packages for Amazon, look through Craigslist for random gigs, stand outside a Home Depot, get a roommate, whatever. $1000. ASAP. Get to it.

Once you hit $1000, "cut up" your credit cards. (But don't cancel them, keep them open to build credit history). I put mine at the bottom of a large tuperware, filled it with water, and put it in the freezer. Literally froze my credit. You shouldn't need to use your credit cards from this point forward--everything you need to buy will come out of your pocket. If your wallet is empty, then you simply don't buy it. If a true emergency comes up (few things are true emergencies), then you have that $1000 buffer to keep you out of your credit cards.

Then you create a budget to allocate the income you do have. Cut out everything you don't need (no TV, no Cable, no coffee, no Internet, basic pre-paid cell phone, etc). If your income is 0, you are going to see a lot of 0's in your budgeting. Your food budget might very well be 0. Your utility budget might very well be 0. Your gas budget might be 0. Stick to your budget. If you have nothing in your budget for food, then you might have to talk to a church about getting some food assistance. If your utility budget is zero, you might have to call the electric and water companies to put you on assistance. Facing the realities of your budget forces you to come up with solutions--and the solution isn't going to be more credit card debt.

The next step is to shore up your income. Finding a job is the obvious solution. Side income, second job, third job, etc, are also going to things you have to look at. But you might also look into assistance from the welfare network that you've already paid into, the church you attend, and the friends you have out there.

After you've got your income back up to the level that it meets your basic needs, you shift the excess income towards building a larger emergency fund (remember, the goal is to never go back to credit card debt), then paying off the debt you have. Start with the smallest debt first (not the highest interest). Knock out the small debt. Roll its payment into the next biggest debt. Keep snowballing the payments into the next set of debt.

Once you are debt free, adjust your budgeting to make sure you are saving money for a backup fund, saving for retirement, and carefully budget things in like vacations, entertainment, and toys.

I recommend Dave Ramsey's Total Money Makeover, and Suze Orman's The Money Class. Both those books helped me get my spending under control, and attack my debt.

How aggressive are you going to have to get? Pretty aggressive. I was at a point where my meal prepping could get my food costs down to less than a dollar a meal, and working two jobs and driving 1.5 hours in the middle of rush hour to get from my first job to my second job. But I'm glad I made those sacrifices early on, because being poor sucked.

Thanks for that, Aeteocles.

Aside from advice, what can we do to help? Fourteen years in this forum counts for something. A dedication to bring weekly to this forum- week in, week out, year in, year out- a moment of zen, counts for something.

We can help. We've done it before. clubleaf is not asking and he would never ask, so I am asking. A fundraiser is called for.

We have people in this forum who take the bull by the horns. Now's the time.

I'm in for a cash donation if someone (or even Clubleaf) can put together a Paypal, Zelle, GoFundMe, VenMo, for it. I'm not versed on the best way to collect money with minimal fees, but I've gotten my fair share of smiles from Clubleaf's weekly Moment of Zen.

We can't do this every time a member gets in a bind but my feeling is that a few dollars sent club's way would be not only a financial relief, but a mental relief as well.

I'm good for $20.

Thank you. Again, to be perfectly clear- clubleaf is not soliciting you for donations. He has not and he will not. I am asking on his behalf.

Thank you, Parabellum. Where do I send the moolah?

Clubleaf,

When you are logged back in, you should set yourself with a Paypal or VenMo account, or confirm if your bank work with Zelle. Then let us know =)

As far as I'm concerned, donations could be sent directly to clubleaf, unless some trusted, longtime member wants to step up as proxy.

quote:

Originally posted by Aeteocles:
Clubleaf,

When you are logged back in, you should set yourself with a Paypal or VenMo account, or confirm if your bank work with Zelle. Then let us know =)

Yes, that would work.

quote:

Originally posted by Aeteocles:
Clubleaf,

When you are logged back in, you should set yourself with a Paypal or VenMo account, or confirm if your bank work with Zelle. Then let us know =)

Also thank you for bringing Dave Ramsey into this. Mrs DF and I began listening to him years ago and our financial peace is due mostly to heeding his advice with few variations.

post up the details. I'm in.

i can contribute via paypal. i will wait for the info.
Hopefully you can use this as a kick start to a better situation going forward club.

Say when

Thanks for the opportunity to do more than talk.

PayPal F+F ready upon confirmation.

I'll help.