#400CreditScore #FixCreditScore #Poverty #CreditCardDebt #LowIncome
Hey there! If you’re struggling with a 400 credit score and a mountain of debt while living on a low income, you’re not alone. It can feel overwhelming, but there are steps you can take to start improving your financial situation.
Here’s a comprehensive guide to help you navigate through this tough situation and find a way to fix your credit score while dealing with poverty.
### Assess Your Financial Situation
First things first, it’s essential to have a clear understanding of your current financial situation. Take a close look at your income, expenses, and debts to get a clear picture of where you stand. Here’s how to start:
– List out all your sources of income, including your full-time job and any additional sources like DoorDash.
– Make a comprehensive list of all your monthly expenses, including rent, groceries, car expenses, and insurance.
– Compile a list of all your debts, including credit cards and personal loans.
### Explore Options for Debt Relief
With your low income and high debt load, it’s important to explore options for debt relief. Here are a few potential avenues to consider:
1. Negotiate with Creditors: Reach out to your creditors and explain your financial situation. Sometimes, they may be willing to work out a new payment plan or settle for a lower amount.
2. Seek Financial Assistance Programs: Look into government or non-profit organizations that offer financial assistance programs for individuals in poverty.
3. Consider Bankruptcy as a Last Resort: While it should be a last resort, bankruptcy may be an option for relieving your debts. Consult with a bankruptcy attorney to understand the implications and determine if it’s the right choice for you.
### Focus on Building Income
Considering your low income, finding ways to increase your earnings should be a top priority. Here are some strategies to consider:
– Job Hunting: Keep aggressively searching for higher-paying job opportunities. Consider reaching out to staffing agencies or exploring job training programs.
– Side Hustles: Look for side hustles or part-time work that can bring in extra income. This can include gig economy jobs like DoorDash or freelance work.
### Develop a Debt Repayment Plan
While it may feel daunting, developing a plan to tackle your debts is crucial. Here’s how to approach it:
– Prioritize Debts: Start by prioritizing your debts based on interest rates and minimum payments. Focus on paying off high-interest debts first.
– Start Making Payments: If you haven’t made any payments in a while, it’s time to start making at least the minimum payments. This will help prevent further damage to your credit score.
– Look for Debt Consolidation Options: Explore options for consolidating your debts into a single, more manageable payment. This could involve a balance transfer to a lower-interest credit card or a debt consolidation loan.
### Focus on Credit Repair
Improving your credit score is a gradual process, but there are steps you can take to start repairing it. Consider these strategies:
– Use Secured Credit Cards: If your credit history has taken a hit, consider opening a secured credit card to rebuild your credit.
– Dispute Errors: Check your credit report for any errors and dispute them with the credit bureaus. Even a small error can make a big difference in your score.
– Stay Current on Payments: Making consistent, on-time payments is essential for improving your credit score over time.
### Seek Financial Counseling
Don’t hesitate to seek help from a financial counselor or advisor who can provide personalized guidance for your specific situation. They can provide valuable insights and help you create a long-term financial plan.
Remember, improving your credit score and managing debt while living in poverty is a challenging journey. It’s ok to seek assistance and take it one step at a time. Keep pushing forward and focus on building a stronger financial foundation for the future.
We hope this guide helps you navigate through this tough situation. Hang in there, and know that there are resources and options available to support you on your journey to financial stability. Good luck! 🌟
You can’t fix that credit score in any reasonable way. There’s no real argument to pay anything, even, unless and until they take you to court. Which they might. You can tell them not to call you.
People do declare bankruptcy over that to eliminate the lawsuit possibility. People here will tell you that you could pay that back, but it’s hard to argue that you should do that. At this point the lenders are not thinking you are going to repay them anyway.
until you fix the low-income problem, there isn’t anything you can do.
even if you wanted to look into bankruptcy, that’s not free, and will have an upfront cost that I’m assuming you don’t have on hand.
get to a living wage first
then deal with the debt and credit score.
Start with your budget. What does your budget look like now? We can talk about bankruptcy, but if your budget is out of balance even without the debt…..what will bankruptcy even accomplish? You can’t make your payments now. If your debt magically disappeared, could you make all your payments? Or would you still be spending more than you make, and you’d just reaccumulate the debt? If you can’t fix that problem, all of the rest won’t really matter much. And you would fix that by getting a higher paying job, or picking up a 2nd job.
If you go the bankruptcy route, on the lowest end for having someone competent hand your BK, it will cost you minimum $1,000-$1,500. Fees alone are in the $300 ballpark.
Look into open construction work positions if you’re physically capable , or even if you’re not doing it will get you there.
I have friends that run concrete and construction businesses that will hire anyone that can show up on time. You can get all the hours you want and it generally pays pretty well. It’s exhausting work physically, but you’ll get in great shape and be too tired to spend any money outside of work hours.
Save to the point you have enough to file and start the march back.
Or you can attempt to set up payment plans with the companies. Let them know you can’t pay it and if you can’t work something out with them you’ll have to go into BK. You’ll get some sort of response, they’d all rather get something instead of nothing.
Expect 7-10 years to get your credit back on track.
How does one manage to do this?
You can make 16 hourly at Walmart. Not shaming at all but I mean damn
$9/hr just isn’t enough. You gotta make more money.
You fix problems like this by taking baby steps. There is no way to leapfrog the baby step of finding a better job. Worry about all the rest after that.
If you are legit being paid 9/hr you are being taken advantage of. There is no where in the US that you can’t make at least 13-15/hr starting at a retail job.
target, walmart and whole foods all pay 17$+ no experience needed , 9 an hour is literally inhumane😭
How old are ya? Still fit? I always take the opportunity to push blue collar on folks who are down and out. Muuvie is the name, aircraft maintenance is the game. There are expensive ways to go about getting the ratings, and cheaper ways. Cheapest is apprenticing! Super easy to get into. Worst part of it is you have to spend 3 year making pennies. Apprentices get around $18/hr these days, but after your three, you’re shooting up to $28/hr starting. You can go airlines, charter Part 91 GA…it’s up to you. Airlines, with time and experience…you’re pulling in around $60/hr with full benefits and union protection.
I elected to remain in charter, lower up front wages…think $38-$40/hr, but it got my foot in the door for a cushy remote position pulling in a little over $200K a year. The money is there, the demand is **omg please work for us** there. You just gotta get moving.
Cause to answer your OP, you aint paying anything off on $9/hr. You’re going to have to file for bankruptcy.
Rarely do I recommend bankruptcy but you sound like a good case. You need to increase earnings drastically and immediately.
Your problem is not a debt problem it’s an income problem. Whatever little money you can save I would suggest you invest in yourself by taking some courses or going back to school. I wish you nothing but the best 😁
How is you have lawyer money but not credit card money? Is a 2nd job a possibility?
pls look at how you got there with the debt and be open and harsh about it with yourself. Are you living where there isnt a Target or Walmart or Home Depot? All pay almost dbl your 9 dollars. Then, helping your dad is key, but after that and bills can you live with rent, food and heat. after that bail on internet, cable etc just for a year and you will be in better shape and a year goes by FAST. just my 2 cents (no pun)
This is going to be a 5+ year plan. You need to implement a strategy to bring your income up as others have suggested. There are numerous studies about how a college degree can more than triple your lifetime earnings and that a college degree could bring your odds of social mobility by up to 90% and that no other investment in yourself comes anywhere near.
​
I think you know where I am getting at. You need to enroll in college you can start small community college and then a 4 year degree. You need to no matter what make progress towards your degree and not stop.
​
Warning: THis is pivotal you will absolutely have to study a major which has alot of earning potential… the stems…accounting…engineering…computer science…ect no psychology or sociology or anything. If you are decent at basic math but lack the skills to be successful in engineering accounting. Nursing too.
​
Now once enrolled in school you will need to shift away from your $9 a job into a job that gives you experience in the given field. AKA if studying accounting I would look for an accounting clerk… accounts payable/recieveable… something starting. A temp agency is a great place to start if you are just starting your career with no experience but you are studying in school. Maybe something like accounting coordinator…ect (this is what I did).
fast forward 8 or so years later I have now been a senior accountant for the past 4 or 5 years and I am currently working on your CPA.
​
YOU NEED A CAREER YOU HAVE A JOB
​
i will get hate for this… do not be shy to take out student loans as long as your major is good
​
Best of Luck
I would file bankruptcy (ch7) or just wait the 7 years and let the defaulted debt fall off my report. I’ve been in that situation twice and have done both. Bankruptcy actually was the better choice by far. My score actually increased significantly as once it got discharged. I got a secured credit card, which I paid off before the statement even printed and was around 700 after just 3 years. Bankruptcy will cost about $1500 or so though. (And no you can’t add that to the bankruptcy)
I would not worry about your credit score right now. It takes years to build a good score. Focus on increasing income. Do you have anything to sell? Do you have any type of service to offer in exchange for payment? Do you have food pantries that can help you with food cost?
I was unaware that we don’t have messaging capabilities so just Google PCs For People. Create yourself and account and upload your qualifying documents and the site will guide you from there. If you need help Just ask for Jessica. I’m the only Jessica that works there. I will be honored to assist. Till then you stay encouraged and keep pushing. All will be well soon💯
join the military if you’re eligible.
apply SCRA benefits to all of your debt (caps interest at <6%), move in to on base housing, if you’re married, you’ll get BAH (Basic Housing Allowance), BAS(Food Money), and so many more benefits on top of a steady paycheck. assuming you’re eligible, stop wasting your time with retail jobs and start studying for your ASVAB. choose whatever MOS you’re offered that has transferrable skills for when you get back into civilian life.
You sir are credit dependent and are not self reliant.
Do bk and read up on personal finance. Discipline yourself before you become permanently in poverty
Absolutely, you should file for bankruptcy under the circumstances you described.
Genuine question, why do you care about your credit? It’s not for people in poverty. Credit isn’t really useful unless you can afford it. Better to put focus elsewhere.
Can you please provide a couple more details – how old are you & what education level do you have & do you have a significant other or kids? These answers dictate a lot in terms of how to properly address your issue.
I normally don’t knock someone for their income. Mine isn’t the highest, but you really need to fix your income. Sometimes work isn’t fun, but there’s so many slightly better paying work out there that $9/hr isn’t good enough.
I’d do both the bankruptcy route and find a new job.
For reference I made $20ish bucks (factoring cc tips) an hour as a barista in Cleveland, with a 5% fully vested 401k match, sick time, vacation time, and health insurance offered after 90 days (roughly $30 per pay period). The hours weren’t the best (some weeks 40, some weeks 25), but I could have always supplemented it by getting a second job. I got this job after I quit a $14/hr factory job with no vacation, no sick time, they basically had a point system that worked against you.
What’s your job? Is there a path to promotion?
It’s impressive that you could find a job only paying $9 in 2024
Take care of the income problem first then deal with the other problems as they come. Hope things improve op and don’t overspend next time some lessons are quite expensive.
Consult with a bankruptcy attorney.
The good ones, that is to say the non-predatory ones, will give you a free initial consult, and help steer to toward which type of bankruptcy makes sense, or if working your way out might be a better path. They will also be understanding of your situation and help devise a reasonable plan to pay their fees.
You didn’t mention wife, kids or health problems of your own.
If you have a clean driving record and can pass a drug test, I suggest you contact a truck driving company that will give you the training and cdl license, you would have to sign a contract with them to stay with them at least a year. Go OTR, you live in your truck rent free.
You need to pay your credit cards and loans. Make an agreement to lower what you owe and make small payments. You will get on track. It will take a while, but you can do it.
Prime, CR England, CRST, stay away from Swift and knight transportation.
Good luck
Military. Work a trade. Apply for tech support. Anything.
Homie $9 an hour ain’t it. 40hrs a week at $9/hr is $300 short of covering the basic necessities. I calculated that with a cheap ass car payment and insurance, renting a single bedroom, cheap internet, a modest phone bill, a low ball on electricity, and skipping health insurance. To put it bluntly, nothing will solve this problem short of making more money. Bankruptcy would be pointless because $9 an hour simply does not even cover monthly expenses if you lived like a monk, much less let you prepare for emergencies.
Honestly I recommend HVAC or military. HVAC often will pay your certification and pay you $15-20 during training, then bump you up to $30-$40 as a starting wage after you certify plus a company vehicle.
Or you could walk into an Army recruiters office and say these exact words. “Hey, I’m an easy get. Reserve me 68K, or any 17 or 25 series with QuickShip for a 6 year contract and I’ll go to MEPS tomorrow.” If you could score 68K and pass the school, you’d get the fuck out of Mississippi, a 40k bonus, most of an associates degree, a very desirable professional license, a steady paycheck, rent and food and insurance, free legal assistance with your debts, and *any* credit account you had prior to joining would be capped at 6% interest.
Ask me how I know what the military can do for you when you ain’t got shit.
If you’re well rounded with social media or have the determination to figure it out. Tik Tok Creativity Program.
Just get yourself on unemployment for 26 weeks !! You won’t get much but if you you claim bankruptcy! Yes 5/7 years ! But everyone will still send you credit card to rebuke your credit !! Crazee. Trust me did it myslef !!! Where your young still , YOU can get out of all these bills by claiming bankruptcy 1500 prob look around. Not hard for them to do so ! But main thing here is once on your unemployment, & if that person who said get you job in construction 🦺 or anything under table ! 🤔👀AGINE I did that myself was in restaurant business so yes they paid under the table then ! & you will be fine prob make even little more !! ? My MAIN POINT is UNEMPLOYMENT will let you go to TRADE. School o& ask them urself to find JOB you like 👍 they pay in full like believe up to 7000$ they did that for my & I got my most consistent 1 was CDL class 1 license if you like driving that HUGE & work anywhere in the 🌎 world with that !!! If not apply for cooking or what is you like && that have all these courses set up for you & how long ! Usually 2-6 weeks courses ALL payed & NEW. Career!!!!!!! My opinion CDL never be without job & so much in demand!!!!!! Name your price because they play well ! Class 1 you can. Do class 2/3 also class 1 just means you can drive anything anywhere!🤔🤔🤔👀💰😆💰😆😆🕑🕑🕑!!!!!
Change your job
Get skill , trade or anything
Minimum job won’t be sufficient
If you are young , take the risk and get apprenticeship
Construction , hvac , electrician … even mechanic will pay top dollar
Leave Mississippi. Drive as far as away as you can until you reach somewhere where you can live in your car and start rebuilding. Somewhere where the minimum wage isnt federal minimum. Or ignored
Uber isnt going to fix the fact that your living in a poverty area. Second/Third/Fourth jobs won’t either.
I wouldn’t worry about the credit score. Those are for borrowing money and you shouldn’t be doing any of that for a long time until you clean this debt up. 30k isn’t enough for bankruptcy imo. Smallest to largest debt (snowball) and try to pull in more income via a raise or another job. Check out Dave Ramsey. You can do it. Best of luck
If you’re just making every minimum payment on time and paying all utilities and other bills on time, and not making any enquiries into debt, your credit score will improve rapidly.
But your financial situation won’t improve.
Can you reach out to family to ask for financial help? You’d have to pay off credit cards first and then reduce the limit significantly or ideally throw them out.
Otherwise the solution is a strict budget whilst looking for higher paying work.