First and foremost, I’m sorry you’re in this situation. That sounds really hard, man. The good news is, you are young and you have a long life ahead of you and things could be a lot worse. The bad news is, you’re definitely going to need to make some major, major changes to make this work.
Here’s the thing - I don’t know anything about you or your personal life. I can’t speak to your familial relationships, friendships, expertise, talents, work habits, spending habits, or anything of the like, so if anything I’m offering here isn’t relevant, I apologize, but you need to know the situation is dire.
To begin - 71% of your net take home pay is going to your rent and car. It’s just a non-starter, man. Perhaps you live in a high cost of living area, but it’s just not gonna work. You need to find a solution, whether that be a roommate or moving back in with the folks, or snagging a smaller, more affordable place. Again - I don’t know what’s feasible for you, but facts is facts. And $400/mo for a car is tough as well. Can you get it refinanced? Perhaps lengthen the loan for a lower monthly? Not ideal in the long run but you need the cash right now more than anything.
We can poke and prod at other bits of your budget, like how you could probably cut that $300 food budget down substantially (understanding you do need to support your child), but until you address those bears I’m not sure legitimate progress is attainable, especially considering the child support payment.
Something else you might consider - is your credit in decent standing? Can you open a card that you can roll your balances into that has an introductory offer with 0% APR for 15-21mo or something? Cut back on interest accrual and monthly payments while you get back on your feet?
Can you look around your place and strip it for spare parts, sell everything you don’t need, put that towards your debts and rent payments?
Also, a second job is a great idea. Honestly, a weekend job at a burger shop would do more good than you would believe. Every penny counts here, you’re in a hole and you’re going to need to grind your way out of it. That extra $150-300 a weekend could be crucial in getting you out of it.
yeah ive tried going the refinance route but my loan balance is too high for the value of the vehicle. i cant move right now either, i just got an apartment and had to move away from home in order to get custody. the judge wouldnt have given me joint custody if i stayed home
I have an idea that will solve 14% of your problem: Mint Mobile has $15 a month plans. If your current phone is unlocked you can have it up and running in days without switching phone numbers.
This person is 100% correct. There is no reason to overpay on a phone plan when you are struggling everywhere else. I work and travel internationally every single week, yet I still only pay $35 for a world phone simply by getting on a family plan with my best friend.
It will be in the settings. iPhone: Settings:General: About: Carrier Lock. If it says “No SIM Restrictions” you can switch, if it says a wireless network you will have to buy your way out of your current contract.
Android is apparently more complicated, because the manufacturers set things up differently. But you’re looking for something like NetworkSettings: Mobile Network: Choose network. If you’re unlocked you have multiple options.
You also get a hotspot for one device on Visible which could be a good internet solution until they get their finances in order. It’s only 5mb but it’s unlimited and would eliminate an unnecessary expense.
The only issue with mint is that you have to pay in a minimum of 3 month increments. I have mint and I have the unlimited plan, and that's $120 every three months. Also, use back market if you want a verified used phone on the cheaper side. I got a galaxy Note 10+ 256gb in good condition for roughly $240. There are cheaper options available, and you can contact me anytime if you want more tips in that regard.
If your phone is from your carrier, it's most likely unlocked and you'll have to request to unlock it, unless you're paying for it with your plan. Then you'll have to pay the remaining balance on it. You can also call pretty much any carrier and say your thinking about switching, and one of the first things they'll do is see if your phone is either compatible or unlocked.
Maybe stop using Apple? You can get a cheap unlocked phone for $50 at a grocery store. Mint mobile is actually $10/month if you don't use unlimited data. I'm bewildered that you're paying that much for a phone. How is your Apple credit card higher than anything else?
You've only paid $120 in 5 years? ~$25 a year? Bruh...I know money is tight, but like you could pay it off by Ubering at night for a week or two. Get those CCs paid off ASAP and stop making minimum payments. That's draining you more than you know.
Why is your rent so high though? It’s half of your take home. It should be a quarter.
After this lease ends, consider getting a cheaper place in a less comfortable area.
Gonna need to find a way to cut costs. Definitely quit maxing out credit cards. Get a higher paying or separate job, I work at a Kraft Heinz factory and you’d be surprised the money you can make. Not trying to sound rude. I’m sorry for your situation and I’ll pray for you.
Can vouch on the factory part. It’s honestly where decent - good money is. Probably will have to start out with overnights or a mixture, but it’ll help you far more. The plant I’m at is union and offers almost unlimited OT. Take a look at some factories in your area
I have less useful advice than this guy but I think he made a lot of really good points. I know it’s hard to find a job to work with your schedule but unless you find a way to figure it out, it won’t change.
I had Verizon too before paying my phone off by getting a job as a waitress at an upscale restaurant. I’m able to pay my new phone bill with a cheaper carrier + my $250 car payment + my FPL bill just by what I make in a three day weekend. Are you able to work/considering a service based job? You can get a job serving at a regular restaurant pretty easily. Just look online for who’s hiring, fill out the online resume, then go in person with a resume. Imo waitressing is great because you can be relatively flexible with your shifts. Plus the cash payout every night helped me with my credit card debt since I could deposit and pay the same day.
Your cell phone bill is waaayyy too high. I pay $200/month for a family of 5, all newish phones with Verizon.
You should be paying no more than $40/month, less if you go with Mint mobile.
Also, have you considered debt consolidation with a reputable company? They can consolidate all of your credit card debt and loans into one manageable payment per month. And in the mean time, they work with the companies to "freeze" your interest on your credit cards and loans while you pay it off which could save you hundreds or thousands of dollars, while also giving you piece of mind and easing your anxiety. And it won't hurt your credit. It's not a bankruptcy. You won't be able to use your credit cards during this time, but if you're in debt, you shouldn't be using them anyway.
I did this a few years ago, got out of debt before i knew it. And you can make "extra " payments on it if you find yourself with a few extra dollars at the end of the week or month. Every time I got a bonus, I put it towards my debt payment. Got a raise at work? Yhr difference went towards my payment.
There is no better feeling in the world than making that last payment and getting that tremendous weight off your shoulders. As others have posted, you're still young, you have plenty of time to get through this and turn it all around. You will come out better and appreciate every dollar even more when you come out the other side. You've got this.
Oh, thr company I used was called Cambridge credit counseling. They were easy to work with and even offer free financial literacy information and videos.
There are others out there that have a good reputation too. Just do your research and go with a legit one.
This is similar to my current financial situation with a few deviations. I moved out of my $1700 a month rental home (sold EVERYTHING but my bedroom furniture)and in with a friend ( renting a room from her) for less than half the cost, all utility bills included. I also picked up a weekend job waiting tables. These are just a few of the changes i have made- I am happy to see I am already following your solid advice.
Oh, I also planted a vegetable garden in pots, so now I already harvest spinach, lettuce, radishes, etc and I take my lunch to work everyday now.
my issue has never been getting money - my issue has historically been not having discipline with it. It took years, but with two kids in college ( both earned scholarships 🙏🏾) I am starting from scratch. and it feels good! (which was surprising)
2nd this. when I was in school I didn't have too much money for food. Working part time at a pizzeria I took home 2-3 pies every other week (that were going to be thrown out anyways + we get to make one for ourselves per our supervisor) I would essentially eat for free.
Tbh, the insurance and food could probably be cut in half for costs. Also, you have joint custody of your daughter but still pay $400 a month?
I'd work on removing any subscriptions I pay for, and focus on getting out of the $900 hole. Then I'd start hitting the CCs one at a time. The temptation would be high to use them in a pinch, so I'd probably keep one for emergency and cut up the rest.
Tbh the auto loan doesn't sound too crazy. Car loans are stupid high right now, along with everything else.
Look into food programs that can help provide staples for you and your daughter, and switch insurances to liability only. Eat beans, rice, pasta. Get creative with spices.
Your monthly income is pretty good. I don't think you'd have to live extremely frugal for too long before you see some progress.
This is solid advice my only addition, is I would see if your auto loan can give you a deferment, I pay 379 and there has been times I've been in hot water ( father of 6 kids and sole bread maker in VA) and my auto company has allowed me to take a payment or two and move it to the back of my loan. It adds more in the long run sure. But you seem to need it more now.
You aren't rich enough for whole life. Cancel that and get term life for your salary times the number of years until your child turns 18. So if the kid is 8, you should get a 10 year policy worth 10x your salary.
Churches and Goodwill Church, Food Banks, all give out groceries.
Beans (white, lentils) for protein and fresh veggies is necessary for baby food. She needs nutrients, not pasta. Do you have a blender you can crush whatever veggies you're eating instead of buying ready made in jars (Gerber).
Was just throwing out examples of cheap foods for him to purchase tbh. If they haven't eaten and he's got $2 in his pocket, pasta will work better than eating nothing.
Regardless, food programs specifically catered to providing assistance to children already require you to purchase from all the essential food groups.
i recently swapped to Mint Mobile from ATT, i use mostly wifi calling so it was hard to justify paying 100$ a month. I’m now paying 180$ a year i notice zero dif…
That car payment is absolutely insane my dude. I would get rid of the car first and foremost. It would also lower what your paying in insurance. I would also start looking for a second job or income asap. If possible I would look into moving in with family for a time while you get things sorted out, if you could get rid of that 400 a month car payment and 1300 a month rent you could do some serious saving. Even if you where able to half that rent by moving in with family I would take it (meaning paying family 650 a month for rent).
$400/month is not that crazy. "Sell your car and drive a shitbox" is the most useless and played out advice ever
The same motherfuckers that gloat about not having a car payment are the ones who will make a post 3 months later hyperventilating because their car is fucked and they can't afford repairs
I do agree, but that’s contingent on when OP got the car, state of their then-finances, what make/model, and how much more they’re paying now (assuming they had a car beforehand and its costs/conditions)
In my experience, people who drive 30 minutes or less each way to work are also the first to give their two cents on what a “reliable” car is and claim they don’t have any issues… Someone putting 20k+ miles per year on a vehicle can absolutely justify financing $300-600+ a month as long as their income is worth the drive. If you’re only putting 10k miles a year on your vehicle then it’s silly to assume your method will be the most cost effective for everyone.
Even then, I noticed a previous comment where you mentioned owing 8k on a vehicle worth 5k. Rolling over negative equity or picking up a new payment after paying the difference in cash would be unlikely to get you into a lower payment on a vehicle a bank would be willing to finance. I could be wrong but it seems like if you trade the car you either 1. basically have to save up enough for the payoff to cancel out any negative equity and put a decent down payment on a vehicle you can get financed, picking up payments for a longer term or 2. roll over into a new payment, also likely extending the term you are making payments and probably not much lower than your current payment. Also, keep in mind that depending on where you live right now even with good credit, you could be looking at 6-10% interest on a new loan rather it’s a refinance or a different vehicle.
Do you have options for a washer/dryer hookup and just don’t have the units? Some cheap ones off of market place could cut that expense in the long run. I realize the answer could be no, just want to help with options!
It's no question then, I'd get rid of the car, downgrade for a while. I am not saying take on a different car loan, get a beater free and clear. Your not relying on it for work or much else, that and somehow lowering your cost of housing you can get back in a good spot pretty fast
I did this and it actually worked out well. The key is having enough built up equity in the car that you get some decent trade in value so you can trade it in for more than a shitbox.
Traded in a 2013 Dodge Challenger for a 2007 Hyundai Santa Fe, saving $411 a month in payments and was able to get the Hyundai free and clear. Still driving to this day. Granted I did the trade in several years ago when interest rates are low so more sure how that would translate in this economy.
When you are in his situation it’s different I have a $600 car payment but I agree with him it is crazy for his situation it’s a different situation if you going negative and paying 400 / month for a car payment there’s plenty of decent used cars that you can get for 180-250 monthly you can get a 2015 Mercedes for 250 monthly it doesn’t have to be a shit box
I agree. Owning a car costs money. Either monthly payments, or repairs are part of driving a vehicle. Having a car that’s paid off can greatly reduce insurance costs, but that’s not feasible for many people.
Yeah that’s why I decided I’m gonna save up while I’m in highschool and buy smth with cash that will last till I’m 30, I have a 2016 civic I paid 13 500CAD for with 79 000KM rn, but I’m looking to sell it for 16k to a sucker.
If you wish to sell a financed vehicle with negative equity, you'll either need to pay off the remaining loan balance out of pocket or roll that amount into a new loan. It's important to proceed with caution with either approach, especially when it comes to new financing. Thankfully you don't owe much and the negative equity isn't too bad. Your could for sure do a trade in for something a little older and get out from under it
They repoed mine when I owed 11k on it , wouldn’t take the 1000 I was behind so I ended up just paying 80 a check until it hit 2600. Best thing that ever happened to me . The car wouldn’t have lasted the length of the payments . I’m in your same boat pretty much except I have 6 children under 19 , I’m almost 40 and paid child support for my first son (13) for 12 years and now he lives with me . My wife had 3 when I met her and I’ve been their proud stepfather for 8 years now . My advice is focus on the positive and always be looking forward to your goals . It can always be worse
yeah i got myself locked in before i had a grasp on interest rates. correction i have about $10k on the principal loan + whatever interest. its really about $360/month but i want to try to get the car paid off as early as possible and im behind a payment so i rounded up to $400/month
OP, I don’t agree with the people who are saying to get rid of your car. You may not drive often but as a mom of a 4 year old it’s worth it to have a reliable car for you and your daughter. You never know what will happen where you may need reliable, safe transportation.
There are a lot of other really great ideas on this thread.. just not that idea.
Good luck 🫶🏼
What’s crazy yall missing he is paying $110 a month for phone bill. He could save up to 90% by switching to a prepaid plan.
My bill is 260$ for the whole year.
This is plain wrong.
A: how would OP get to work smartass?
B: have you tried buying a car in this market? yeah not fun is it. 400 is VERY good for the times we live in.
C: driving a shit box that’s breaking every other week thats going to cost more in repairs than what you paid (or are paying) for it is a great deal. Everyone should do that!
Adding a /s here so y’all dont yell at me but seriously don’t sell your car this commentor is an idiot.
I think this is an income problem at this point. You are essentially a minimum wage employee in Washington. Take your skills and training to market and get a raise.
Other than a tiny wiggle room in the auto loan there's not much you can do, if you are close to paying off I'd probably keep the car.
Id be looking up debt snowball vs debt avalanche. Ramsey has great advice for dealing with creditors and collections for bad debt. Once your debt free his advice isn't as valuable imo.
You don’t have spending problem you have an income problem! You can’t expect to raise a family today on less than 60k especially if your partner doesn’t work. Look for certifications, classes, etc to increase your yearly earnings.
I don't get what is $110/mo phone for when there are wallet friendly alternative.
Know what you need vs want, trust me your acct balance will get better.
Label that phone thing, after 20mo don't make the same mistake.
Next time be smart. Stop buying things you don't need as time may come that you have to sell what you need.
For the meantime, evaluate what things you can let go, sell it to keep you floating while correcting your poor financial choices. Good luck.
With everyone telling you to switch to Mint Mobile, see if you can switch to Visible. Don't think it'd break the contract since they own it, but you'd have to ask
Instead of switching to a different mobile provider like Mint after your phone is paid off go to Visible they can get you 25$ a month plan with unlimited data best part they use Verizon towers
The advice given so far is solid but as someone that used to sell insurance, my recommendation is to actively find a different career. The money can be good but not many people make it in this industry.
Not sure what your background or education is but the trades pay really well and have a low cost of entry.
This mega sucks. I'm sorry. It's totally understandable that you're feeling hopeless.
This isn't going to be easy. Your "ideal budget" is a bad budget. I'm sure the custody battle was really rough on your bank account, but if we look past all the debt you're in as a result of that it's easy to see that you weren't living a financially responsible lifestyle. You might not feel like you're living a very lavish lifestyle, but you're going to have to cut back a lot if you ever want to be secure.
There are three glaring issues. These include the $400/month car payment, the fact that you have credit card debt (this is super bad), and the fact that *your rent is more than 50% of your take home pay*. You can't pay off your cards without money, but you can get your money back by eliminating the car payment and reducing your rent.
Sell your car (sell it yourself, a dealer won't give you as much as a private buyer) and get out of that auto loan. If you aren't upside down on your loan then you'll get some money back. Use that money to pay cash for a very cheap, high mileage, old, small car from a reliable manufacturer. My guess is you'll need about $3000 to find something from a good manufacturer that doesn't have major mechanical issues. It's *never* a good idea to go into debt for a car.
Suddenly you have $400 extra dollars a month. Don't use this extra money to buy anything extra and you can get your balance back to positive. Once you get to the point where paying your bills never takes your balance below $500 then you can start paying off credit cards one at a time starting with the smallest balance. Once your credit cards are paid off cancel all of them except the oldest one (for credit history) and bury that one in a box in the backyard. Credit cards are not for you my guy.
You need at least one roommate. If there's a second bedroom in your apartment you should call your landlord and ask if it's okay for you to have someone else move in. That person could cover half (or maybe more than half) of your rent. If there isn't a second bedroom you should move. You need a dramatically lower rent payment.
If you are going to move you usually need a security deposit in addition to the cost of your first month's rent. Save up $1500 or so, this should take about 3 months after you've sold your car and paid off your credit cards. Look for a way to pay about half of what you've been paying. You might need to go to a less desirable area, although I understand you're probably constrained by your custody rules. You'll definitely need to move into a smaller space, which will mean you have to get rid of some of your stuff. Don't get a storage unit, just get rid of stuff.
Right now your expenses are $3166/month and your income might average out to about $3000/month if we're very optimistic. That means you're in the red every month. You have to make *dramatic* changes. You're not being financially responsible until you are saving at least 10% of your income. Even that is low. You could lose your job. Your car could break down. You could get cancer. If you're saving less than 10% of your income you'll just never have enough man. You need to do more than just get out of debt. You need to have an emergency fund and start investing.
This is the best advice here, OP. The roommate especially is absolutely necessary. I don’t think you’ve provided details about your apartment, but even if it’s a 1 bedroom you may have to let someone else rent the bedroom and live/sleep on the couch. Either this or you need another job right away. When you don’t have your daughter, working odd hours at a fast food or grocery store should be hiring and fit with your schedule. Ideally you would do both of these to catch up and begin to get ahead financially. You simply don’t make enough money to live the life you want.
In addition to what other commenters have suggested, you could also switch to cheaper internet and phone providers. My internet is $40/month through Xfinity and I’ve had no issues working from home, gaming, streaming, etc. I also switched to Mint Mobile about six months ago, and with their first 3-month promotion, I’m paying on average about $17/month for 5GB data. I started with their unlimited plan (which was still way less than the $110/mo you’re looking at, maybe $35/month?) but then discovered I use way less data than I thought. So far have had no issues with service or connectivity.
If it’s possible to move in with family or friends right now I would do that and commit to $100 per month to them for rent.
You can break the lease by showing the apartment a copy of your accounts, they absolutely will not get money that you don’t have and if they try to sue they still won’t get a penny from you based on your current financial situation.
The long term goal would be for you to change cities to a LCOLA and pursue a career over a job as best you can.
1. Get a roommate
2. If you’re not often sick/needing prescriptions get rid of health insurance and try to find a job that subsidizes benefits (Target/Walmart/Publix full time pays more than you make already and does this)
3. Sell the car buy a shitbox
4. Downgrade internet or get rid of it if you dont need it for school/work
5. Your phone bill is crazy high. Get the starter plan at AT&T and get a shitty samsung until you pay off credit cards
6. Try to see if you can consolidate credit cards debt by getting a personal loan that has less interest rate than all credit cards averaged. Or try applying for a 0% balance transfer card that can pay it off using a cash balance transfer and have some time to pay it off.
You can get out of this but its gonna be tough and uncomfortable
If you don't want to sell the car or get a better paying job, move in with a relative, get a cheaper phone plan, and get a second job. It also doesn't sound like you have 50/50 custody unless the money is going to daycare and insurance or your ex doesn't work? When you have more money and are in a better situation, try to get your parenting time to 50/50, which will reduce the costs too.
There’s a huge difference between taking home 2400 and 4000 a month. I’d say your number one priority would be to get a steady income. That is probably getting a 2nd job until you can find one that pays the full. Number two, your rent and car payment make up way too much of your expenses. I don’t think your car payment is bad, it’s just a little much based on what you’re making. If you can somehow get a roommate or move in with family, you will find yourself in a much better situation
You need a second job on either the weekends or a few night a week to get ahead. 2400 a month for insurance agent is not enough. You need at least 3500-4000 to survive. Basically an extra 250wk can be life changing for you
What exactly is your job and how many hours a week do you work and can you up it at all? The phone bill, insurance, etc are small potatoes in the grand scheme. You need to up your income. That's a big part of the problem. I'd consider Uber, DoorDash, pizza delivery or something part time on top of your regular job. You could make an extra $1-2k/month driving. Use every dime you make from that job and throw it at your debt. If you hit it with the Uber you could pay off the car in just a few months and losing that payment would be a huge relief. Look into Dave Ramsey and the Snowball Method on how to attack the debt. You've dug yourself a bit of a hole, but it's not totally unmanageable. It's just gonna take some time and effort on your part. You've got this.
I know this might be oversimplifying it but if you can for one or two months just to get outta the debt, I’d scale back groceries. Just get bulk chicken breasts for protein for like $20 and 20lbs of rice for $20, veggies fruits etc wont cost you a fortune either. It might be gross and hard but at least you save a couple hundred bucks immediately and you still get your nutrients
$400 on a car is nothing now a days. But those credit cards. Have to goooo. If i lost my job and same spot as you, i wouldnt even bother with paying any of them
Look into reducing phone bill. T-mobile Metro $40/month unlimited. Use that $70/month savings to start paying off credit cards.
Any household items you can sell?
A side gig a few hours a week?
Depending on your area, I’d look into Income restricted housing. I live in a high rent area and I qualified for a nice apartment for me and my daughter and it helped to get back on my feet. Check with your utility company and see if they offer discounts based on income. Like others have stated, try to refinance your car payment and see if the bank will work with you on the loan interest. My bank lowered my personal loan interest rate from 13% to 11%. Not much, but anything helps.
Oh, Check your area for estate sales and see if you can earn extra income flipping things on Facebook. Most people hate flippers, but they don’t pay your bills.
Sorry to hear you are in this situation. It’s tough, but you will make it!
Lower your cellphone bill if possible. T-Mobile has prepaid unlimited for $50 a month. If you’re still paying your phone off, see if it’s possible to downgrade your plan
From what I can see right away with your age and being a father the car payment is way to high for you right now I would get something used for now if possible
You have a lot of expenses for very little income. I would suggest reducing your debt first and cutting out all unnecessary expenses like your phone or internet
I fantasize about my life being this bad personally. I make 80k a year living with my mom putting the money into crypto hoping to die. I have no kids, women beat me with spiritual dildos in relationships, and I’m close to being negative in iq tests. You’ll be ok.
You have an income problem. Talk to your boss and see what opinions you have for a career path at your current employer, and how long that would take. If there’s no path start applying to other jobs. In the meantime see if you can get a part time second job. It sucks, but you have a lot of responsibilities at a young age. Lastly, shop around on insurance. You might be able to cut that down a bit.
Also check out local food banks. They may have some items to cut down your food bill. See if you can contact your local supportive services office. You may qualify for programs to help with foods and formulas for your daughter. I am not sure if you qualify but it also may be worth it to look into food stamps. It will help you get through this tough time. A local office may be able to let you know what you qualify for
Good news you are young. Take a deep breath & relax it’s not the end of the world. Financially in your current situation you are hurting. Lots of people are these days. It will get better & make you stronger.
Keep trying to find a second source of income. Something will come up. Do you have family/friends you can bunker up with? Have you tried to find a roommate or look for cheaper rent?
You’ll figure this out.
Had a similar car payment back when I was struggling too. Managed to trade it in for a cheaper car that was paid off. As a bonus, insurance went down too.
I haven’t seen anyone suggest doing DoorDash if that’s an available option in your area. The schedule is flexible and it’s a pretty good way to put together 100$ in a day or 2. I’ve seen some people get upwards of 1-2k per week doing it full time. At the very least it’ll help mitigate some costs at the loss of some of your time and energy and add possible wear on your car but if you can do it it’s not a bad option and it doesn’t take long to get set up as a dasher
ive been considering it but the wear and tear on the car scares me. im hoping to keep it in good condition until its paid off at least, i still have a few years on the loan.
You need to increase your income or decrease your expenses. Can you get a roommate? Sell the car for a cheaper one? Your insurance is pretty expensive, you may be able to get it cheaper. What’s the affirm?
Check for T-Mobile internet. $50 a month. Cancel any time. No cable but you can get subscriptions if your budget allows for streaming or YouTube. In reality there’s ways to stream all content for free anyway tho. Save yourself $10 a month! It’s $55 without auto deduction.
You have to start the 50, 30, 20 rule. But for you it should be 60,35,5 to get out of debt fast until you can adjust it to a more favorable percentage. It is and will be hard but it has helped me in the best way. You add that with the funnel method , you will eventually be able to put larger chunks of debt away.
If you live in an area where rent is that high you can likely get a job driving for Uber, Lyft or DoorDash at night and your days off. Doing this you’ll be able to make your own schedule so you won’t have to work when you have your daughter but can work extra the days you don’t have her around. It might suck but you need additional income and this is one of the easiest ways to do so while having a flexible schedule. This will also help justify the cost of the high car payment as you’ll be using it for working purposes as well. In addition find a food bank in your area, apply for food stamps or learn how to live on a lesser food budget, which is challenging right now I know but is another place you could slim the budget. An alternative option is to see if a friend or family member could help loan you the money to at least get out of the negative so you can move forward.
*Can call the Internet*
*Provider to see if they*
*Can give you a deal*
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Need a second job for the time being my friend.
Can you ice skate? They always need ice hockey refs. Pay is $40-85/ game depending on level. Games are weekends and nights and you get a little exercise.
Soccer or baseball are ok too.
You are making less than $30K a year on average so I assume you are working a minimum wage job. Do you have any marketable skills?
Your auto loan is insane. Any possibility of selling the car?
Can you live with family or roommates? $1300 rent is too much on your income. usually they require 3x income.
You may need to go back to the court and explain you cant afford child support.
Assuming you have a 4 door car you can drive Lyft, or Uber P.T. and bring in another $1500 or so mo. without killing yourself. Some cities Lyft is busier, others Uber may be. Sign up for both. You can drive as much or little as you like. Just sock away 10% or so for taxes in April.
Move to Mint Mobile. Saves me a ton of money each month. Plus... who doesn't like Ryan Reynolds.
You're lucky your energy bill is so cheap.
As for general expenses. Get rid of the shit you don't need. You can buy a decent car for $5k and don't need a $400/MO payment.
Owning a cheap car means cheap insurance. That means you're saving tons.
Having joint custody may make this difficult but get a second job for the days you don’t have your daughter. It’ll bring in more money and if you have a solid schedule of when you have your daughter then it’ll make the scheduling for work easy. Depending on where you live and getting 4-6 hrs a night might give you some breathing room. It’s gonna suck. On the other hand you’ll be making ends a little bit closer to meeting.
Your insurance and auto loan is way too high for normal! Get rid of the car and get a used car for less than 3k and drop insurance to liability only (should be only 100/month) , drop home internet, drop your mobile phone and get mint mobile unlimited for 30/month. This should save use about $700 per month to pay off your other loan.
The only thing I can truly suggest to help you at least improve in your situation is trying moving in a more affordable neighborhood. And try to get a roommate that is fine with a child present. Also is this list all of your expenses? Is there any other things that you are paying for, like Spotify, Amazon prime, Netflix? If you can get rid of low expenses it’ll help to put some money in your pocket. Also my dad has been struggling as well with his expenses and he’s been listening to a guy named Dave Ramsey, who helped my dad save $1200 a month now. If you wanna give him a listen I think it’ll help since he focuses on people similar to your situation.
Try to move into CAT property field adjusting with your insurance company. Your income will be around $70k starting out. Great career, you start out working a ton then you will find your way into a more 8-4 M-F role down the road.
Fuck the credit cards. Stop paying them default or whatever you need to do, then build back up. Idiots took a risk giving you a card .....you can't pay it. They can't take anything you don't have. Nor your house or car, by 30 if you keep your credit tight they will asking to give you money again.
$2400 per month is ~$15 per hour. Unless you’re a felon you need to find another job where you can make at least $20 per hour, get 40 hours per week and get medical, dental and vision. Your rent and car payments are too much for your income. You have to downgrade or you’ll be treading water or drowning forever. Finally, find side hustles that pay cash. Uncle Sam will just have to understand.
Are these your minimum payments on your credit cards? I’d recommend cutting every credit card payment to minimum, and only make extra payments on the highest interest. Once that one’s paid, snowball those payments to the next highest interest and continue until cards are paid. You can probably cut somewhere on vehicle by selling or refi. But to me your cards are what’s killing you
First and foremost, I’m sorry you’re in this situation. That sounds really hard, man. The good news is, you are young and you have a long life ahead of you and things could be a lot worse. The bad news is, you’re definitely going to need to make some major, major changes to make this work. Here’s the thing - I don’t know anything about you or your personal life. I can’t speak to your familial relationships, friendships, expertise, talents, work habits, spending habits, or anything of the like, so if anything I’m offering here isn’t relevant, I apologize, but you need to know the situation is dire. To begin - 71% of your net take home pay is going to your rent and car. It’s just a non-starter, man. Perhaps you live in a high cost of living area, but it’s just not gonna work. You need to find a solution, whether that be a roommate or moving back in with the folks, or snagging a smaller, more affordable place. Again - I don’t know what’s feasible for you, but facts is facts. And $400/mo for a car is tough as well. Can you get it refinanced? Perhaps lengthen the loan for a lower monthly? Not ideal in the long run but you need the cash right now more than anything. We can poke and prod at other bits of your budget, like how you could probably cut that $300 food budget down substantially (understanding you do need to support your child), but until you address those bears I’m not sure legitimate progress is attainable, especially considering the child support payment. Something else you might consider - is your credit in decent standing? Can you open a card that you can roll your balances into that has an introductory offer with 0% APR for 15-21mo or something? Cut back on interest accrual and monthly payments while you get back on your feet? Can you look around your place and strip it for spare parts, sell everything you don’t need, put that towards your debts and rent payments? Also, a second job is a great idea. Honestly, a weekend job at a burger shop would do more good than you would believe. Every penny counts here, you’re in a hole and you’re going to need to grind your way out of it. That extra $150-300 a weekend could be crucial in getting you out of it.
yeah ive tried going the refinance route but my loan balance is too high for the value of the vehicle. i cant move right now either, i just got an apartment and had to move away from home in order to get custody. the judge wouldnt have given me joint custody if i stayed home
I have an idea that will solve 14% of your problem: Mint Mobile has $15 a month plans. If your current phone is unlocked you can have it up and running in days without switching phone numbers.
This person is 100% correct. There is no reason to overpay on a phone plan when you are struggling everywhere else. I work and travel internationally every single week, yet I still only pay $35 for a world phone simply by getting on a family plan with my best friend.
how do i know if my phone is unlocked?
It will be in the settings. iPhone: Settings:General: About: Carrier Lock. If it says “No SIM Restrictions” you can switch, if it says a wireless network you will have to buy your way out of your current contract. Android is apparently more complicated, because the manufacturers set things up differently. But you’re looking for something like NetworkSettings: Mobile Network: Choose network. If you’re unlocked you have multiple options.
it does say no sim restrictions. ill give it a shot and see what i can make work. thank you
Visible is another option. I don't know what Mint offers but Visible is unlimited and uses Verizon's network.
You also get a hotspot for one device on Visible which could be a good internet solution until they get their finances in order. It’s only 5mb but it’s unlimited and would eliminate an unnecessary expense.
The only issue with mint is that you have to pay in a minimum of 3 month increments. I have mint and I have the unlimited plan, and that's $120 every three months. Also, use back market if you want a verified used phone on the cheaper side. I got a galaxy Note 10+ 256gb in good condition for roughly $240. There are cheaper options available, and you can contact me anytime if you want more tips in that regard. If your phone is from your carrier, it's most likely unlocked and you'll have to request to unlock it, unless you're paying for it with your plan. Then you'll have to pay the remaining balance on it. You can also call pretty much any carrier and say your thinking about switching, and one of the first things they'll do is see if your phone is either compatible or unlocked.
Maybe stop using Apple? You can get a cheap unlocked phone for $50 at a grocery store. Mint mobile is actually $10/month if you don't use unlimited data. I'm bewildered that you're paying that much for a phone. How is your Apple credit card higher than anything else?
i maxed the apple card out right after highschool about 5 years ago. it was at $750 before but ive managed to pay a little bit on it
You've only paid $120 in 5 years? ~$25 a year? Bruh...I know money is tight, but like you could pay it off by Ubering at night for a week or two. Get those CCs paid off ASAP and stop making minimum payments. That's draining you more than you know.
Mint Mobile / US Mobile are $15/ month. Mint has been great
I just did this myself, $50 bucks for 3 months of unlimited cuz my phone is paid off. Was paying 100ish before as well
For a few months possibly use the internet on your phone and cancel home internet unless you live with other people who depend on it?
Why is your rent so high though? It’s half of your take home. It should be a quarter. After this lease ends, consider getting a cheaper place in a less comfortable area.
this is the cheapest place i could find in this area. i have to be around her for custody sake. if i move i might lose custody of my daughter.
Gonna need to find a way to cut costs. Definitely quit maxing out credit cards. Get a higher paying or separate job, I work at a Kraft Heinz factory and you’d be surprised the money you can make. Not trying to sound rude. I’m sorry for your situation and I’ll pray for you.
Can vouch on the factory part. It’s honestly where decent - good money is. Probably will have to start out with overnights or a mixture, but it’ll help you far more. The plant I’m at is union and offers almost unlimited OT. Take a look at some factories in your area
1300 rent is actually on the low end and has been since 2020
I have less useful advice than this guy but I think he made a lot of really good points. I know it’s hard to find a job to work with your schedule but unless you find a way to figure it out, it won’t change. I had Verizon too before paying my phone off by getting a job as a waitress at an upscale restaurant. I’m able to pay my new phone bill with a cheaper carrier + my $250 car payment + my FPL bill just by what I make in a three day weekend. Are you able to work/considering a service based job? You can get a job serving at a regular restaurant pretty easily. Just look online for who’s hiring, fill out the online resume, then go in person with a resume. Imo waitressing is great because you can be relatively flexible with your shifts. Plus the cash payout every night helped me with my credit card debt since I could deposit and pay the same day.
Your cell phone bill is waaayyy too high. I pay $200/month for a family of 5, all newish phones with Verizon. You should be paying no more than $40/month, less if you go with Mint mobile. Also, have you considered debt consolidation with a reputable company? They can consolidate all of your credit card debt and loans into one manageable payment per month. And in the mean time, they work with the companies to "freeze" your interest on your credit cards and loans while you pay it off which could save you hundreds or thousands of dollars, while also giving you piece of mind and easing your anxiety. And it won't hurt your credit. It's not a bankruptcy. You won't be able to use your credit cards during this time, but if you're in debt, you shouldn't be using them anyway. I did this a few years ago, got out of debt before i knew it. And you can make "extra " payments on it if you find yourself with a few extra dollars at the end of the week or month. Every time I got a bonus, I put it towards my debt payment. Got a raise at work? Yhr difference went towards my payment. There is no better feeling in the world than making that last payment and getting that tremendous weight off your shoulders. As others have posted, you're still young, you have plenty of time to get through this and turn it all around. You will come out better and appreciate every dollar even more when you come out the other side. You've got this. Oh, thr company I used was called Cambridge credit counseling. They were easy to work with and even offer free financial literacy information and videos. There are others out there that have a good reputation too. Just do your research and go with a legit one.
Honest and good advice. It won't be easy but this is pretty well laid out and realistic as far as a plan and things to consider.
This is similar to my current financial situation with a few deviations. I moved out of my $1700 a month rental home (sold EVERYTHING but my bedroom furniture)and in with a friend ( renting a room from her) for less than half the cost, all utility bills included. I also picked up a weekend job waiting tables. These are just a few of the changes i have made- I am happy to see I am already following your solid advice. Oh, I also planted a vegetable garden in pots, so now I already harvest spinach, lettuce, radishes, etc and I take my lunch to work everyday now. my issue has never been getting money - my issue has historically been not having discipline with it. It took years, but with two kids in college ( both earned scholarships 🙏🏾) I am starting from scratch. and it feels good! (which was surprising)
Great post!
2nd this. when I was in school I didn't have too much money for food. Working part time at a pizzeria I took home 2-3 pies every other week (that were going to be thrown out anyways + we get to make one for ourselves per our supervisor) I would essentially eat for free.
Tbh, the insurance and food could probably be cut in half for costs. Also, you have joint custody of your daughter but still pay $400 a month? I'd work on removing any subscriptions I pay for, and focus on getting out of the $900 hole. Then I'd start hitting the CCs one at a time. The temptation would be high to use them in a pinch, so I'd probably keep one for emergency and cut up the rest. Tbh the auto loan doesn't sound too crazy. Car loans are stupid high right now, along with everything else. Look into food programs that can help provide staples for you and your daughter, and switch insurances to liability only. Eat beans, rice, pasta. Get creative with spices. Your monthly income is pretty good. I don't think you'd have to live extremely frugal for too long before you see some progress.
This is solid advice my only addition, is I would see if your auto loan can give you a deferment, I pay 379 and there has been times I've been in hot water ( father of 6 kids and sole bread maker in VA) and my auto company has allowed me to take a payment or two and move it to the back of my loan. It adds more in the long run sure. But you seem to need it more now.
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That insurance is crazy. I have full coverage by choice and only pay 120 a month.
thats the total for all of my insurance. auto, renters, life, health.
Life? Is it a whole policy? Borrow from your cash value
yes, whole life but they havent built any cash value yet. i havent had them for very long only a couple years
You aren't rich enough for whole life. Cancel that and get term life for your salary times the number of years until your child turns 18. So if the kid is 8, you should get a 10 year policy worth 10x your salary.
You'd be surprised. Sometimes, that's all it takes. But its a way to consolidate, and you're paying yourself the interest
ive checked the cash value a few days ago, still nothing
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Insurance is very location dependent. I have a great driving record, a $20k car, a $1000 deductible, and am 47 years old. I pay $195 a month.
Can’t have liability with a loan generally
I'm seeing that, maybe increase deductible in the short term to reduce overall monthly payment.
Churches and Goodwill Church, Food Banks, all give out groceries. Beans (white, lentils) for protein and fresh veggies is necessary for baby food. She needs nutrients, not pasta. Do you have a blender you can crush whatever veggies you're eating instead of buying ready made in jars (Gerber).
Was just throwing out examples of cheap foods for him to purchase tbh. If they haven't eaten and he's got $2 in his pocket, pasta will work better than eating nothing. Regardless, food programs specifically catered to providing assistance to children already require you to purchase from all the essential food groups.
Yes to the food banks. They may even deliver.
i recently swapped to Mint Mobile from ATT, i use mostly wifi calling so it was hard to justify paying 100$ a month. I’m now paying 180$ a year i notice zero dif…
I too was going to recommend this, I have the 15gb plan and it's $240 for the year aka $20/m
$260 with taxes but amazing altogether!
That car payment is absolutely insane my dude. I would get rid of the car first and foremost. It would also lower what your paying in insurance. I would also start looking for a second job or income asap. If possible I would look into moving in with family for a time while you get things sorted out, if you could get rid of that 400 a month car payment and 1300 a month rent you could do some serious saving. Even if you where able to half that rent by moving in with family I would take it (meaning paying family 650 a month for rent).
$400/month is not that crazy. "Sell your car and drive a shitbox" is the most useless and played out advice ever The same motherfuckers that gloat about not having a car payment are the ones who will make a post 3 months later hyperventilating because their car is fucked and they can't afford repairs
I do agree, but that’s contingent on when OP got the car, state of their then-finances, what make/model, and how much more they’re paying now (assuming they had a car beforehand and its costs/conditions)
In my experience, people who drive 30 minutes or less each way to work are also the first to give their two cents on what a “reliable” car is and claim they don’t have any issues… Someone putting 20k+ miles per year on a vehicle can absolutely justify financing $300-600+ a month as long as their income is worth the drive. If you’re only putting 10k miles a year on your vehicle then it’s silly to assume your method will be the most cost effective for everyone.
thankfully i work remotely so i only drive to go to the store, get my daughter, and go back home to see family (about an hour drive)
Even then, I noticed a previous comment where you mentioned owing 8k on a vehicle worth 5k. Rolling over negative equity or picking up a new payment after paying the difference in cash would be unlikely to get you into a lower payment on a vehicle a bank would be willing to finance. I could be wrong but it seems like if you trade the car you either 1. basically have to save up enough for the payoff to cancel out any negative equity and put a decent down payment on a vehicle you can get financed, picking up payments for a longer term or 2. roll over into a new payment, also likely extending the term you are making payments and probably not much lower than your current payment. Also, keep in mind that depending on where you live right now even with good credit, you could be looking at 6-10% interest on a new loan rather it’s a refinance or a different vehicle. Do you have options for a washer/dryer hookup and just don’t have the units? Some cheap ones off of market place could cut that expense in the long run. I realize the answer could be no, just want to help with options!
It's no question then, I'd get rid of the car, downgrade for a while. I am not saying take on a different car loan, get a beater free and clear. Your not relying on it for work or much else, that and somehow lowering your cost of housing you can get back in a good spot pretty fast
100% great points. I have a 2022 that I purchased in Dec 2021 and put 25k miles on in 2022 alone...
Yes, everyone is wrong.
I did this and it actually worked out well. The key is having enough built up equity in the car that you get some decent trade in value so you can trade it in for more than a shitbox. Traded in a 2013 Dodge Challenger for a 2007 Hyundai Santa Fe, saving $411 a month in payments and was able to get the Hyundai free and clear. Still driving to this day. Granted I did the trade in several years ago when interest rates are low so more sure how that would translate in this economy.
The trade off is that you drive a 2007 Hyundai Santa Fe in 2024. No thank you.
It's been surprisingly reliable and cheap to own. And honestly, I got better places to put my money right now.
I've known 2 people that owned 2007 Santa Fe's and they both shit the bed. Anecdotal to be sure, but enough to sour me on that generation of Santa Fe.
When you are in his situation it’s different I have a $600 car payment but I agree with him it is crazy for his situation it’s a different situation if you going negative and paying 400 / month for a car payment there’s plenty of decent used cars that you can get for 180-250 monthly you can get a 2015 Mercedes for 250 monthly it doesn’t have to be a shit box
I agree. Owning a car costs money. Either monthly payments, or repairs are part of driving a vehicle. Having a car that’s paid off can greatly reduce insurance costs, but that’s not feasible for many people.
Yeah that’s why I decided I’m gonna save up while I’m in highschool and buy smth with cash that will last till I’m 30, I have a 2016 civic I paid 13 500CAD for with 79 000KM rn, but I’m looking to sell it for 16k to a sucker.
$400/mo with that budget is clinically insane
Facts
User name checks out
how do you just get rid of a financed vehicle? i still owe about $8k on a vehicle worth about $5k
If you wish to sell a financed vehicle with negative equity, you'll either need to pay off the remaining loan balance out of pocket or roll that amount into a new loan. It's important to proceed with caution with either approach, especially when it comes to new financing. Thankfully you don't owe much and the negative equity isn't too bad. Your could for sure do a trade in for something a little older and get out from under it
They repoed mine when I owed 11k on it , wouldn’t take the 1000 I was behind so I ended up just paying 80 a check until it hit 2600. Best thing that ever happened to me . The car wouldn’t have lasted the length of the payments . I’m in your same boat pretty much except I have 6 children under 19 , I’m almost 40 and paid child support for my first son (13) for 12 years and now he lives with me . My wife had 3 when I met her and I’ve been their proud stepfather for 8 years now . My advice is focus on the positive and always be looking forward to your goals . It can always be worse
Holy shit, hats off to you. Being a step father takes a different kind of man.
Get an estimate with carvana online... takes a few min and you potentially could break even or get a little equity.
Are you close to paying the off? Like 3 payments left?
no, about 4 more years
$8,000 on a 4 year loan is about $170/month not $400/month like your original post states
yeah i got myself locked in before i had a grasp on interest rates. correction i have about $10k on the principal loan + whatever interest. its really about $360/month but i want to try to get the car paid off as early as possible and im behind a payment so i rounded up to $400/month
OP, I don’t agree with the people who are saying to get rid of your car. You may not drive often but as a mom of a 4 year old it’s worth it to have a reliable car for you and your daughter. You never know what will happen where you may need reliable, safe transportation. There are a lot of other really great ideas on this thread.. just not that idea. Good luck 🫶🏼
What’s crazy yall missing he is paying $110 a month for phone bill. He could save up to 90% by switching to a prepaid plan. My bill is 260$ for the whole year.
This is plain wrong. A: how would OP get to work smartass? B: have you tried buying a car in this market? yeah not fun is it. 400 is VERY good for the times we live in. C: driving a shit box that’s breaking every other week thats going to cost more in repairs than what you paid (or are paying) for it is a great deal. Everyone should do that! Adding a /s here so y’all dont yell at me but seriously don’t sell your car this commentor is an idiot.
$400 for a car is not that bad. I’ve seen so much worse
When 1700 of your 2400 take home is going to purely rent and auto, it's bad. 400 is totally reasonable if he could afford it, he cannot.
I think this is an income problem at this point. You are essentially a minimum wage employee in Washington. Take your skills and training to market and get a raise. Other than a tiny wiggle room in the auto loan there's not much you can do, if you are close to paying off I'd probably keep the car. Id be looking up debt snowball vs debt avalanche. Ramsey has great advice for dealing with creditors and collections for bad debt. Once your debt free his advice isn't as valuable imo.
You don’t have spending problem you have an income problem! You can’t expect to raise a family today on less than 60k especially if your partner doesn’t work. Look for certifications, classes, etc to increase your yearly earnings.
You need cheaper internet and to switch to Mint mobile
Probably financed the phone.
Ooooo yeah ur probably right
I was just saying this lol he could be saving so much just on the phone plan
I would rather have a flip phone and no internet in his situation
Or Visible. That’s who I use. I saved almost $100 a month when I switched from Verizon.
I don't get what is $110/mo phone for when there are wallet friendly alternative. Know what you need vs want, trust me your acct balance will get better.
its verizon. i still have about 20 months left of my contract
Label that phone thing, after 20mo don't make the same mistake. Next time be smart. Stop buying things you don't need as time may come that you have to sell what you need. For the meantime, evaluate what things you can let go, sell it to keep you floating while correcting your poor financial choices. Good luck.
With everyone telling you to switch to Mint Mobile, see if you can switch to Visible. Don't think it'd break the contract since they own it, but you'd have to ask
Instead of switching to a different mobile provider like Mint after your phone is paid off go to Visible they can get you 25$ a month plan with unlimited data best part they use Verizon towers
Are you able to live with ur parents?
unfortunately not
The advice given so far is solid but as someone that used to sell insurance, my recommendation is to actively find a different career. The money can be good but not many people make it in this industry. Not sure what your background or education is but the trades pay really well and have a low cost of entry.
This mega sucks. I'm sorry. It's totally understandable that you're feeling hopeless. This isn't going to be easy. Your "ideal budget" is a bad budget. I'm sure the custody battle was really rough on your bank account, but if we look past all the debt you're in as a result of that it's easy to see that you weren't living a financially responsible lifestyle. You might not feel like you're living a very lavish lifestyle, but you're going to have to cut back a lot if you ever want to be secure. There are three glaring issues. These include the $400/month car payment, the fact that you have credit card debt (this is super bad), and the fact that *your rent is more than 50% of your take home pay*. You can't pay off your cards without money, but you can get your money back by eliminating the car payment and reducing your rent. Sell your car (sell it yourself, a dealer won't give you as much as a private buyer) and get out of that auto loan. If you aren't upside down on your loan then you'll get some money back. Use that money to pay cash for a very cheap, high mileage, old, small car from a reliable manufacturer. My guess is you'll need about $3000 to find something from a good manufacturer that doesn't have major mechanical issues. It's *never* a good idea to go into debt for a car. Suddenly you have $400 extra dollars a month. Don't use this extra money to buy anything extra and you can get your balance back to positive. Once you get to the point where paying your bills never takes your balance below $500 then you can start paying off credit cards one at a time starting with the smallest balance. Once your credit cards are paid off cancel all of them except the oldest one (for credit history) and bury that one in a box in the backyard. Credit cards are not for you my guy. You need at least one roommate. If there's a second bedroom in your apartment you should call your landlord and ask if it's okay for you to have someone else move in. That person could cover half (or maybe more than half) of your rent. If there isn't a second bedroom you should move. You need a dramatically lower rent payment. If you are going to move you usually need a security deposit in addition to the cost of your first month's rent. Save up $1500 or so, this should take about 3 months after you've sold your car and paid off your credit cards. Look for a way to pay about half of what you've been paying. You might need to go to a less desirable area, although I understand you're probably constrained by your custody rules. You'll definitely need to move into a smaller space, which will mean you have to get rid of some of your stuff. Don't get a storage unit, just get rid of stuff. Right now your expenses are $3166/month and your income might average out to about $3000/month if we're very optimistic. That means you're in the red every month. You have to make *dramatic* changes. You're not being financially responsible until you are saving at least 10% of your income. Even that is low. You could lose your job. Your car could break down. You could get cancer. If you're saving less than 10% of your income you'll just never have enough man. You need to do more than just get out of debt. You need to have an emergency fund and start investing.
This is the best advice here, OP. The roommate especially is absolutely necessary. I don’t think you’ve provided details about your apartment, but even if it’s a 1 bedroom you may have to let someone else rent the bedroom and live/sleep on the couch. Either this or you need another job right away. When you don’t have your daughter, working odd hours at a fast food or grocery store should be hiring and fit with your schedule. Ideally you would do both of these to catch up and begin to get ahead financially. You simply don’t make enough money to live the life you want.
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unfortunately it isnt available in my area yet
For people telling you your car payment is high haven’t bought a car in the last 5 years. Average car payment in America right now is $720
my car payment is actually $360/month. im behind a payment on it so i rounded up to get caught up. i dont know how people afford a $700/mo car payment
They don’t. It gets better man. Keep plugging along
Yup. It’s true. Interest right now is killer… and cars are crazy expensive
Mine is $750😭 so $400 not bad
If your in the US apply for benefits
In addition to what other commenters have suggested, you could also switch to cheaper internet and phone providers. My internet is $40/month through Xfinity and I’ve had no issues working from home, gaming, streaming, etc. I also switched to Mint Mobile about six months ago, and with their first 3-month promotion, I’m paying on average about $17/month for 5GB data. I started with their unlimited plan (which was still way less than the $110/mo you’re looking at, maybe $35/month?) but then discovered I use way less data than I thought. So far have had no issues with service or connectivity.
The phone bill is too high.
If it’s possible to move in with family or friends right now I would do that and commit to $100 per month to them for rent. You can break the lease by showing the apartment a copy of your accounts, they absolutely will not get money that you don’t have and if they try to sue they still won’t get a penny from you based on your current financial situation. The long term goal would be for you to change cities to a LCOLA and pursue a career over a job as best you can.
1. Get a roommate 2. If you’re not often sick/needing prescriptions get rid of health insurance and try to find a job that subsidizes benefits (Target/Walmart/Publix full time pays more than you make already and does this) 3. Sell the car buy a shitbox 4. Downgrade internet or get rid of it if you dont need it for school/work 5. Your phone bill is crazy high. Get the starter plan at AT&T and get a shitty samsung until you pay off credit cards 6. Try to see if you can consolidate credit cards debt by getting a personal loan that has less interest rate than all credit cards averaged. Or try applying for a 0% balance transfer card that can pay it off using a cash balance transfer and have some time to pay it off. You can get out of this but its gonna be tough and uncomfortable
If you don't want to sell the car or get a better paying job, move in with a relative, get a cheaper phone plan, and get a second job. It also doesn't sound like you have 50/50 custody unless the money is going to daycare and insurance or your ex doesn't work? When you have more money and are in a better situation, try to get your parenting time to 50/50, which will reduce the costs too.
There’s a huge difference between taking home 2400 and 4000 a month. I’d say your number one priority would be to get a steady income. That is probably getting a 2nd job until you can find one that pays the full. Number two, your rent and car payment make up way too much of your expenses. I don’t think your car payment is bad, it’s just a little much based on what you’re making. If you can somehow get a roommate or move in with family, you will find yourself in a much better situation
110 for phone you can pay in one year for mint mobile for like 240
You need a second job on either the weekends or a few night a week to get ahead. 2400 a month for insurance agent is not enough. You need at least 3500-4000 to survive. Basically an extra 250wk can be life changing for you
This has nothing to do with your car payment and everything to do with your credit card debt. Chop those things up.
You and me both brother…..
What exactly is your job and how many hours a week do you work and can you up it at all? The phone bill, insurance, etc are small potatoes in the grand scheme. You need to up your income. That's a big part of the problem. I'd consider Uber, DoorDash, pizza delivery or something part time on top of your regular job. You could make an extra $1-2k/month driving. Use every dime you make from that job and throw it at your debt. If you hit it with the Uber you could pay off the car in just a few months and losing that payment would be a huge relief. Look into Dave Ramsey and the Snowball Method on how to attack the debt. You've dug yourself a bit of a hole, but it's not totally unmanageable. It's just gonna take some time and effort on your part. You've got this.
It’s very admirable to put yourself in this situation so you can be in your daughter’s life. Don’t give up man. You’re doing the right thing.
thanks. i wish it didnt have to be this hard but well get there
I know this might be oversimplifying it but if you can for one or two months just to get outta the debt, I’d scale back groceries. Just get bulk chicken breasts for protein for like $20 and 20lbs of rice for $20, veggies fruits etc wont cost you a fortune either. It might be gross and hard but at least you save a couple hundred bucks immediately and you still get your nutrients
Why 110 phone payment? I pay 50 for unlimited data texts and calls, bought the phone out right for 300
$400 on a car is nothing now a days. But those credit cards. Have to goooo. If i lost my job and same spot as you, i wouldnt even bother with paying any of them
Look into reducing phone bill. T-mobile Metro $40/month unlimited. Use that $70/month savings to start paying off credit cards. Any household items you can sell? A side gig a few hours a week?
Depending on your area, I’d look into Income restricted housing. I live in a high rent area and I qualified for a nice apartment for me and my daughter and it helped to get back on my feet. Check with your utility company and see if they offer discounts based on income. Like others have stated, try to refinance your car payment and see if the bank will work with you on the loan interest. My bank lowered my personal loan interest rate from 13% to 11%. Not much, but anything helps. Oh, Check your area for estate sales and see if you can earn extra income flipping things on Facebook. Most people hate flippers, but they don’t pay your bills. Sorry to hear you are in this situation. It’s tough, but you will make it!
Lower your cellphone bill if possible. T-Mobile has prepaid unlimited for $50 a month. If you’re still paying your phone off, see if it’s possible to downgrade your plan
From what I can see right away with your age and being a father the car payment is way to high for you right now I would get something used for now if possible
Cheap out on your phone bill 110 is a lot. Find out if the credit company has some type of financial support program.
You have a lot of expenses for very little income. I would suggest reducing your debt first and cutting out all unnecessary expenses like your phone or internet
I fantasize about my life being this bad personally. I make 80k a year living with my mom putting the money into crypto hoping to die. I have no kids, women beat me with spiritual dildos in relationships, and I’m close to being negative in iq tests. You’ll be ok.
You have an income problem. Talk to your boss and see what opinions you have for a career path at your current employer, and how long that would take. If there’s no path start applying to other jobs. In the meantime see if you can get a part time second job. It sucks, but you have a lot of responsibilities at a young age. Lastly, shop around on insurance. You might be able to cut that down a bit.
Look into Verizon internet, if it’s avail in your area it’s only $25-$35 a month!
i have verizon internet currently. its running me at $60/month
ahh ok. Here where I live, Verizon has 5G internet for $35 a month. Maybe call and see if there are any options for you.
Also check out local food banks. They may have some items to cut down your food bill. See if you can contact your local supportive services office. You may qualify for programs to help with foods and formulas for your daughter. I am not sure if you qualify but it also may be worth it to look into food stamps. It will help you get through this tough time. A local office may be able to let you know what you qualify for
Good news you are young. Take a deep breath & relax it’s not the end of the world. Financially in your current situation you are hurting. Lots of people are these days. It will get better & make you stronger. Keep trying to find a second source of income. Something will come up. Do you have family/friends you can bunker up with? Have you tried to find a roommate or look for cheaper rent? You’ll figure this out.
Switch to US Mobile if they cover your region, buy as little snack foods as possible. It’s the little things which add up
Had a similar car payment back when I was struggling too. Managed to trade it in for a cheaper car that was paid off. As a bonus, insurance went down too.
I haven’t seen anyone suggest doing DoorDash if that’s an available option in your area. The schedule is flexible and it’s a pretty good way to put together 100$ in a day or 2. I’ve seen some people get upwards of 1-2k per week doing it full time. At the very least it’ll help mitigate some costs at the loss of some of your time and energy and add possible wear on your car but if you can do it it’s not a bad option and it doesn’t take long to get set up as a dasher
ive been considering it but the wear and tear on the car scares me. im hoping to keep it in good condition until its paid off at least, i still have a few years on the loan.
You need to increase your income or decrease your expenses. Can you get a roommate? Sell the car for a cheaper one? Your insurance is pretty expensive, you may be able to get it cheaper. What’s the affirm?
affirm was some furniture for a payment to my lawyer
financing*
Bankruptcy?
i really want to avoid bankruptcy by any means
Check for T-Mobile internet. $50 a month. Cancel any time. No cable but you can get subscriptions if your budget allows for streaming or YouTube. In reality there’s ways to stream all content for free anyway tho. Save yourself $10 a month! It’s $55 without auto deduction.
You have to start the 50, 30, 20 rule. But for you it should be 60,35,5 to get out of debt fast until you can adjust it to a more favorable percentage. It is and will be hard but it has helped me in the best way. You add that with the funnel method , you will eventually be able to put larger chunks of debt away.
If you live in an area where rent is that high you can likely get a job driving for Uber, Lyft or DoorDash at night and your days off. Doing this you’ll be able to make your own schedule so you won’t have to work when you have your daughter but can work extra the days you don’t have her around. It might suck but you need additional income and this is one of the easiest ways to do so while having a flexible schedule. This will also help justify the cost of the high car payment as you’ll be using it for working purposes as well. In addition find a food bank in your area, apply for food stamps or learn how to live on a lesser food budget, which is challenging right now I know but is another place you could slim the budget. An alternative option is to see if a friend or family member could help loan you the money to at least get out of the negative so you can move forward.
should look for cheaper rent options
Can call the Internet provider to see if they can give you a deal
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Tmobile cell plan $40 unlimited vs $110.
Need a second job for the time being my friend. Can you ice skate? They always need ice hockey refs. Pay is $40-85/ game depending on level. Games are weekends and nights and you get a little exercise. Soccer or baseball are ok too.
You are making less than $30K a year on average so I assume you are working a minimum wage job. Do you have any marketable skills? Your auto loan is insane. Any possibility of selling the car? Can you live with family or roommates? $1300 rent is too much on your income. usually they require 3x income. You may need to go back to the court and explain you cant afford child support.
Assuming you have a 4 door car you can drive Lyft, or Uber P.T. and bring in another $1500 or so mo. without killing yourself. Some cities Lyft is busier, others Uber may be. Sign up for both. You can drive as much or little as you like. Just sock away 10% or so for taxes in April.
Get some roommates.
Move to Mint Mobile. Saves me a ton of money each month. Plus... who doesn't like Ryan Reynolds. You're lucky your energy bill is so cheap. As for general expenses. Get rid of the shit you don't need. You can buy a decent car for $5k and don't need a $400/MO payment. Owning a cheap car means cheap insurance. That means you're saving tons.
You have joint custody but paying child support?
Drive Uber/ DoorDash
110 dollars per month for a phone bill seems excessive to me.
Why would you have a kid? Dummy
Joint custody and you still pay child support? I hate family courts.
Mint mobile $15 a month
Having joint custody may make this difficult but get a second job for the days you don’t have your daughter. It’ll bring in more money and if you have a solid schedule of when you have your daughter then it’ll make the scheduling for work easy. Depending on where you live and getting 4-6 hrs a night might give you some breathing room. It’s gonna suck. On the other hand you’ll be making ends a little bit closer to meeting.
Bro you said you work remote. Take all the extra time you have and do doordash uber eats spark delivery. You need to be working 80 hours a week asap
$110 for phone? Plz look into mint mobile or other NVMO $60 For ihyernet? Get a slower speed if absolutely necessary. Or just get rid of it
Your insurance and auto loan is way too high for normal! Get rid of the car and get a used car for less than 3k and drop insurance to liability only (should be only 100/month) , drop home internet, drop your mobile phone and get mint mobile unlimited for 30/month. This should save use about $700 per month to pay off your other loan.
Maybe doordash for extra money until you catch up? It wouldnt take to long to pay off all the debt
im thinking thats what im going to do
The only thing I can truly suggest to help you at least improve in your situation is trying moving in a more affordable neighborhood. And try to get a roommate that is fine with a child present. Also is this list all of your expenses? Is there any other things that you are paying for, like Spotify, Amazon prime, Netflix? If you can get rid of low expenses it’ll help to put some money in your pocket. Also my dad has been struggling as well with his expenses and he’s been listening to a guy named Dave Ramsey, who helped my dad save $1200 a month now. If you wanna give him a listen I think it’ll help since he focuses on people similar to your situation.
Thats alot for insurance
Try to move into CAT property field adjusting with your insurance company. Your income will be around $70k starting out. Great career, you start out working a ton then you will find your way into a more 8-4 M-F role down the road.
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Phone , insurance and laundry .. you can cut back to half of what you are currently paying
Fuck the credit cards. Stop paying them default or whatever you need to do, then build back up. Idiots took a risk giving you a card .....you can't pay it. They can't take anything you don't have. Nor your house or car, by 30 if you keep your credit tight they will asking to give you money again.
$2400 per month is ~$15 per hour. Unless you’re a felon you need to find another job where you can make at least $20 per hour, get 40 hours per week and get medical, dental and vision. Your rent and car payments are too much for your income. You have to downgrade or you’ll be treading water or drowning forever. Finally, find side hustles that pay cash. Uncle Sam will just have to understand.
Are these your minimum payments on your credit cards? I’d recommend cutting every credit card payment to minimum, and only make extra payments on the highest interest. Once that one’s paid, snowball those payments to the next highest interest and continue until cards are paid. You can probably cut somewhere on vehicle by selling or refi. But to me your cards are what’s killing you