#DebtFree #FinancialFreedom #GetOutOfDebt #PersonalFinance
Are you feeling overwhelmed by the weight of consumer debt, like owing over 50k++ and struggling to make ends meet? It can be a challenging and stressful situation to be in, but there is hope and a way out of this financial burden. Let’s take a closer look at how you can start taking control of your debt and work towards a debt-free future.
## Assess Your Financial Situation
Before you can begin to tackle your debt, it’s essential to have a clear understanding of your current financial situation. Take the time to gather all your debts, expenses, and income to create a comprehensive overview.
### Total Debt:
– Consumer debt – $50k++
– Credit card debt – $10,500 each on 5 cards
### Income:
– Net income – $3.7k/month
### Expenses:
– Credit cards – $2,625
– Rent – $1,200
– Groceries – $500
– Insurance – $300
– PTPTN – $170
– Petrol and toll – $200
– Personal – $150
– Postpaid w device – $300
## Develop a Debt Repayment Plan
Once you have a clear picture of your financial situation, it’s time to create a debt repayment plan. Here are some strategies you can consider:
### 1. Prioritize High-Interest Debt
– Focus on paying off debts with the highest interest rates first to minimize the amount of interest you’ll pay over time.
### 2. Increase Income
– Look for ways to increase your income, such as taking on a part-time job or freelancing gigs, to accelerate your debt repayment efforts.
### 3. Cut Expenses
– Identify areas where you can cut back on expenses to free up more money towards debt repayment. This could include reducing discretionary spending on non-essential items.
### 4. Seek Professional Help
– Consider seeking advice from a financial advisor or debt counselor who can provide guidance on managing your debt effectively.
## Break the Cycle of Gambling
It’s crucial to address the root cause of your debt, which in this case is excessive gambling. Breaking this cycle is essential to prevent further financial damage and regain control of your finances.
### Steps to Overcome Gambling Addiction:
– Seek help from a therapist or support group specializing in gambling addiction.
– Limit access to gambling venues or websites.
– Replace gambling activities with healthier alternatives, such as exercise or hobbies.
## Communicate with Your Family
While it may be challenging, consider opening up to your family about your financial situation and seeking their support. They may provide emotional support and assistance in finding solutions to your debt problems.
## Building a Financial Safety Net
To prevent falling back into debt in the future, it’s essential to build a financial safety net. Consider establishing an emergency fund to cover unexpected expenses and start investing in your financial future.
As you embark on your journey towards financial freedom, remember that it’s a process that requires patience, dedication, and perseverance. By taking proactive steps to address your debt and make positive financial decisions, you can pave the way for a brighter financial future.
If you’re struggling with debt, know that you’re not alone, and there are resources and support available to help you overcome this challenge. Take the first step towards a debt-free future today. 💪🏼💰 #DebtFreeLiving #PersonalFinanceTips #FinancialWellness
You don’t get by if you have to spend more. It’s a simple math equation where money in has to be greater than money out. It’s not currently, and will only get worse until it is. Earn more or spend less. Not what you wanted to hear, but there’s no magic.
$50k is definitely in the bankruptcy territory, especially with your income. That would be my advice. Your credit score will drop but as long as the bankruptcy is clean and there is no negative activity afterward your score should begin to recover in 2-3 years.
The stress relief alone would make it worth to me.
Sorry to hear the situation you’re in man.
If I were you I would seriously consider personal bankruptcy. It’s hard to see someone with your income climbing out of this. I also think at 33, you need to think about your life longterm and realize that, if this goes on for much longer, you are seriously jeopardizing any future retirement plans. 33 is not too late to start from zero.
I don’t want to make assumptions, but my guess is that this is weighing you down in ways that you don’t even realize anymore. Please take some time to think about this because it’s a big decision, but you need to act fast.
Cut up your credit cards, they’re enabling your poor habits. Parents should be working since you can’t afford to cover them.
You’ll need to go through a difficult period of cutting spending to an absolute minimum so you can pay back some of the debt and get out from under the monthly payments. Then keep going until you clear them all. That gets you back $2600 per month which is enough to live normally.
It’s the only way, other than bankruptcy which is awful.
Why aren’t your parents working? If they are able – that needs to change. You can’t dig yourself out of this hole while trying to hold them up to.
You can’t collect up a couple of dollars from friends or something and try to win it back?
I mean are you going to deal with the root of the problem or just stay on the hamster wheel?
Others have given good financial advice; one thing I would add: you need counseling for your gambling addiction or this will happen all over again.
You need to treat your gambling like a recovering alcoholic treats booze: don’t touch it again ever for any reason.
You’re young enough where you can recover from this. That won’t be the case 10, 15, 20 years from now.
>Maxed the remaining cards and/or borrow people here pay people there, borrow people there pay people here.
Both of those are HORRIBLE options. Don’t even consider them.
The best option is to earn more and spend less. On the income side, you should look for better jobs, or a second job, or overtime, or gig work, or selling things you own, or selling blood plasma. On the spending… the $150 personal spending will probably have to go.
But if you can’t increase your income in a meaningful way, bankruptcy may be your best option. Bankruptcy sounds scary, but it’s MUCH better than borrowing even more money.
>My family does not know this and I managed to keep my financial situation hidden
This will have to change. You need to rip off the bandage and admit to your friends and family that you’re a gambling addict. Then they’ll be able to help you. If you try to keep it a secret, the guilt and secrecy will eat you alive.
You’re fucked. The interest is probably higher than the min monthly payment. You’ll never climb out unless you put in more than the minimum, and you can’t do that. Make your parents go to work. They got you in this situation it sounds like.
Why are you doing trying to provide for your parents when you can’t even provide for yourself? Boomers deserve to be broke if they couldn’t make it in a time when you could buy a house and raise a family on a single income from a non skilled job.
1 – why are you supporting your parents if you can’t even support yourself? That needs to change.
2 – I don’t know where you live but in Canada we have something called a Consumer Proposal which is slightly better than bankruptcy but can still help you get out of the mess. If that’s an option where you live, check into it. Get some credit/debt counseling while you’re at it (there are non-profits that can help with that).
3 – it all comes down to spending less than you make. Right now you’re doing the opposite. You need to get out of the debt cycle so you can make more than you spend… either make more money or spend less. Dealing with your overwhelming debt is the most important thing right now.
Good luck!
“Massive gambling is the foundation of my 5 cards debts and I have nobody to blame but myself. My family does not know this and I managed to keep my financial situation hidden”
They will find out. You need to be honest with yourself.
Your parent need to work unless they are incapacitated.
Ask for help. If you don’t come forward at least with your parents with your gambling situation, you will likely be worse off. Perhaps they can help you pay it off right away if they’re able?? You said they have no income but do they have savings?
Join a group for gambling addiction. Otherwise you will find yourself in this situation again.
Paying minimum balance, your interest must be higher. Have you read detail on your statements? See if you are able to get help from debt consolidation company to combine your debt and minimize the interest rate. BUT DO NOT GET ANOTHER CREDIT CARD. You need to go back to baby steps – only spend within means.
All in all, please get help. Open up to those you trust about this “situation” they can help.
I don’t think the OP is American or based in America. PTPTN is a student loan from the Malaysian government to study in Malaysia, and EPF is some kind of Malaysian social security.
OP would get better advice if they included this very basic information as there are massive cultural differences (this is the reason they are supporting their parents) and also legal differences (everyone saying bankruptcy is basing that off of American laws).
You need to talk to your parents about them contributing.
You need a 2nd job.
You don’t say if you are still gambling, but you need to get help if you are.
If you can’t find more money, just stop paying on everything except your important lifestyle bills and 0% int cards/loans. You need a reset and it’s better to live and survive than try and maintain your bad credit. After about 6 months they will offer 50% reduction of balance. If you can afford it, pay it off, otherwise stay gangsta and keep your money for yourself.
Debt negotiators and other credit building programs are for suckers who don’t know they should just give up and let their credit reset. I’ll probably get downvoted by them because they are indoctrinated by the economy to pay their bills. I’m sorry but people need to live and shits hard right now. Goodbye credit! See ya in 7 years.
And no, you don’t need to declare bankruptcy unless you have a massive debt with the government. Creditors and collectors will hound you day and night but you don’t need to explain anything to them – they can talk to your voicemail. Just wait them all out until 7 years pass.
DMP— Debt Management Plan. Close all those cards through a program like Green Path. Paid off within 5 years with fixed payments and near zero interest.
Keep making minimum payments until you’ve confirmed the plan has taken over payments. It won’t ding your credit score directly, there’s just the impact of all of those closed cards, which is like nothing when compared with your utilization percentage now.
You need to find another job or a side hustle to make more money. You need to let your parents know about the gambling and debt so they realize how dire the situation is, and so that they can work and help contribute too. If they’re too old to work, then all 3 of you are screwed.
Seek treatment for your gambling habit. Stay the course and don’t relapse. Come clean to your family and show you have been working to get it together and then rebuild.
Good luck OP.
Stop gambling.
[http://www.gamblersanonymous.org/ga/locations](http://www.gamblersanonymous.org/ga/locations)
​
Good luck
I was all, oh no, this guy is helping his family and running up debt to cover the expenses. Nope. Degenerate gambler.
I went once years ago to the Seminole casino over by Tampa. I took $100 with me to gamble. Out of this I spent $21 on alcoholic drinks. The rest I spent trying to figure out how slot machines work. I came home with a voucher worth 1 cent.
The couple we went with, the husband visited the ATM multiple times during our outing, the wife looked very upset. Turns out he cleared out their bank account during the visit. He was playing at the poker tables and I guess he wasn’t very good at it.
They ended up getting divorced, they had two kids together. The wife specifically cited his gambling problem as the reason for divorce. He was a nice guy, worked hard and loved his wife and kids.
I don’t know if there is a help group for gambling such as AA where you are, but others have posted that there might be. Please research this, as there is no shame in seeking help.
Best of luck to you.
I’ve been in a similar situation, had 70k in cc debt, interest ballooned and became unpayable. lost work so was no even able to make the minimum payments. i ended up filing for chapter 7. all debts were discharged. it’s going to be a pain to rebuild, and I’m pretty sure borrowing money isn’t an option anymore for the forseeable future. I have one cc for the sake of repairing credit that’s all.
if you can consolidate into a loan and make smaller monthly payments on your debt that would be the ideal option (and never borrow another dollar until you’ve paid off the consolidated debt)… there’s also debt settlements, but its costly and will impact your credit a lot.
bankruptcy should be last resort, because it’ll impact any financial decision you make for a very long time, your rates will always be higher than anyone else and you’ll be denied a lot of options…
I know where you are, it’s painful and seems hopeless, but its not. there’s always a way out even if it’s ch7 (last resort)
It’s a big burden what you’re dealing with and you need all the support you can get. Keeping it from your family means that burden is bigger. Shrink the burden, we all make mistakes.
Then, you have to make more money and/or spend less. Maybe driver Uber after work or get a grocery job. Refinance a credit card if you can on interest free transfer ect to bring the rate down or get the credit cards bundled into a personal loan.
This is a bad choice, but…settle or default on the cards. Build a cash transaction life for the next 7 years.
Get help from a professional counselor
Woof this is a bad spot to be in. There’s been some solid advice already posted and my suggestion may also have been given I just didn’t get all the way down. You should consolidate this debt into one payment be it through a credit union or bank. I imagine your interest rates are going to be lower and you can adjust your payments to be more in line with those terms -say 50k over 24 months which would save you around ~600 per month from what you’re currently paying
Then keep the credit lines, cut up 4 of them, and get a credit line decrease on your daily use card. Good luck op.
Balance transfer to some 0% cards and pay less than that per month. Look at this as something to take care of in a span of five years.
>How do I get by if I have to spend more?
You increase your income, usually with a second job.
Counseling for gambling.
Cards should be cut up, if you can’t afford to pay in cash you can’t afford to put on the cards.
Are you saying you have a 1745 phone!?! Get rid of that and buy a 4-5 year old phone. Use a cheap batterbano and usb cable if battery is dying.
Look what roommate situations where you rent a room. Cut that rent in half, you can’t afford to live on your own. Or better, see if parents accept to have you back home for 2-3 years. If you put 109% of rent and utilities towards debt would go faster.
Talk to credit counseler or bankruptcy trustee. If you can negotiate a consumer proposal at a better rate you could get your head above water especially if you take the above measures.
But #1, #2, #3 get into counseling for your gambling and tell your family friends to have them help keep you accountable.
Hi OP, if you’re Malaysian, please reach out to AKPK (Credit Management and Counseling Agency), they’ll advise you on consolidating and restructuring your credit card outstanding balances for a more manageable interest and payment term. You won’t be making a significant dent by just making minimum payments, all five outstanding balances can potentially snowball to huge amounts within a few years. Please ask if they can redirect you to any help on the gambling addiction too.