There is good news and bad news. The good news: You can get out of this mess. The bad news: It will take you about 3 years of EXTREME sacrifice and self-control. 1)Cut up the credit cards now, and vow to never, ever have one ever again! 2)Cut your expenses down to the bone. I saw what you said about not being able to cut your expenses, but is that really the case? Get rid of the cable tv. Do you really need a cellphone? Buy clothes at Goodwill instead of Walmart. Get your groceries at Aldi's instead of Schnucks. Turn off the A/C (yea, I know it's summer. 100 years ago, nobody had A/C, and everyone did just fine). The point is that saving money can be hard, but turn it into a game. That way, it becomes fun, creative, and becomes a lifestyle. Become a lunatic at saving money. 3)Sell the truck. If you are upside down on your loan (the truck is worth less than what you owe), then sell it anyway, and get a personal loan for the difference. Then, buy a $1,000-$2,000 vehicle with cash. Style, color, and make/model do not matter here. The more dents the better! Even with the increased maintence of an older car, it will be much cheaper than a new truck payment, not to mention the savings in insurance rates. Instead of $200-$300 a month for insurance, you will be paying around $20-$30 a month! 4)Try to get a part-time job on the side. Deliver pizzas a couple of nights a week. UPS is always hiring around the holidays for temp labor, and pay very well. See about getting some overtime with your current job. Maybe you can start a home-based business. If you are computer-savy, than take an Ad out in the newspaper, and do some repair work on the side. There are many ways for an able-bodied person to make money, and don't have to spend alot of time doing it.
Now, as to what to do with all of this new-found wealth? 1)get on a written budget. No money gets spent that doesn't get on paper at the beginning of the month. 2)Take all of your debts, and sort through them from smallest to largest. Make minimum payments on all of your debt, and attack the smallest one with a vengeance. After it is paid off, then go after the next smallest one, and so forth. Dave Ramsey call this a debt snowball. As you pay off the smaller debts, your ability to pay becomes greater and greater , and the end result is no debt, and no bankruptcy. I strongly suggest you get his book, The Total Money Makeover, available at the bookstore or library. I really wish you well.
· 1 decade ago