Hey everyone! 💬
I’m reaching out because I’ve hit a bit of a wall with my and my spouse’s finances. We’re currently juggling substantial credit debt and a car loan, all while living on a fixed income from SSI. I’d love to hear your thoughts on whether consolidating our debt or potentially letting it go to collections is the way to go.
Here’s a quick look at our situation:
- **Current Debt**:
- 💳 $7,500 in credit card debt (Capital One & PayPal)
- 🚗 $6,200 on a car loan (2017 model with issues)
- 📅 Plus $751 on Affirm (paying off over 17 months)
- **Monthly Income**:
- 💰 About $1,900 (split between us from SSI and survivors benefits)
- **Minimum Payments**:
- $174 (big card), $50 (small card), $43 (PayPal), $105 (spouse’s PayPal), $151.78 (car)
**Expenses**:
- 🏠 Rent: $480
- 🚗 Car Insurance: $102
- 🌐 Internet: $86
- 💊 Prescriptions: $30
- 📱 Cell Service: $38
It feels like we’re stuck in a cycle of trying to manage the debt but moving backwards. With rising interest rates (my credit cards are at **27.99%** and **30.15%**), it feels like an uphill battle. I previously contacted Capital One to discuss lower rates, but no luck yet. 😞
**Pain Points**:
- Constant stress over financial stability 😟
- Limited options for consolidating due to our credit situation 📉
- Juggling bills with looming debt feels overwhelming 😩
So, here’s my question: Should we consider debt consolidation as a way out, or is going to collections a more feasible option for us? Have any of you faced a similar situation? How did you handle it? 🤔
**Possible Solutions I’m Considering**:
- 🎯 **Debt Consolidation**: Looking into if we can combine debts into one lower-interest loan.
- 🛑 **Debt Settlement**: Negotiating with creditors to reduce the total debt owed.
- 📣 **Consumer Credit Counseling**: Seeking advice to better manage our debt.
I’d really appreciate any tips or experiences you can share. Let’s help each other navigate this tricky terrain! 🌟
Relevant Resources:
Thanks for taking the time to read! Looking forward to your responses! 😊
**Hashtags**: #DebtConsolidation #FinancialStruggles #SSI #CreditCardDebt #DebtHelp
“She has around 3300 CC debt and is the co-signer on the car.”
You’re Married. That’s Our credit card debt. What’s a co-signer when it’s Our car.
“the main reason I got the PayPal was to use it to pay down the smaller card”
You took on mire debt, to hide debt with different debt. Let’s fix all the wrong words, to get proper perspective.
“There’s also $751 on affirm” Geez, when are you going to be ready to stop lying to yourselves through your lifestyle? What did you buy through Affirm that you couldn’t afford?
“I’ve contacted CO before” and you still didn’t stop the spending. Are you really going to stop now?
That car isn’t going to be paid off, because you’ll get fed up and make another bad deal, right?
You’re both able to shop like crazy. That means you can find some paying gig to address the debt. What you really need to do is make a budget which has you spending nearly nothing beyond food, shelter, utilities, some basics. Then start living like the broke people you are, or you’ll never turn this around. Yes, it might take years; it’s not nearly as much fun to dig out, as it was to live that high life.