quitforme79

When I was drinking I paid my bills on time and besides having a decent paying job was still always feeling broke. Now that I am sober, I see that WHY I am broke because the interest rates on my 7 credit cards are just insane! Never mind 7 minimum payments a month! Lately I feel like I can't keep up and it's stressing me out terribly I applied for a personal loan through my work's credit union but doubt I will get approved because all my cards are maxed out so that doesn't look financially responsible. And it ISN'T financially responsible. I have been in debt since I was in grad school back in 2008-2010. I feel like such a loser in my early 30's and my net worth is in the negative. Wahhhh

Any advice as to how to get out? I want to pay things off but really don't even know where to get started as I never have anything extra to put aside.

SoulKat

Credit counseling worked for me. I had numerous credit cards maxed out and payed it all off in 5 years. It doesn't affect your credit report negatively either.

quitforme79

Thank you Laura...I was just looking up some online but some say they affect your credit rating. Do you have one specifically that you can recommend?

hypochondriac

I can guarantee that being sober you will be better equipped to deal with this in the long run. I am terrible with money but I was more inclined to be irresponsible or get drunk to forget it when I was drinking. Things got a little worse for me because I really overspent on other stuff when I quit but I went to my bank and had a chat and ended up getting a loan to cover my debts. It isn't the first time I've done this but now I am sober I am working on it being my last. It is much easier to get this stuff sorted with a clear head, and the stress subsides when you start making positive changes. It can be scary and seem unmanageable but there are always ways to work these things out x

quitforme79

Thanks hypo I am actually working with a credit counseling agency as of now. I took action and called rather then put it off like I always do. I just need to set up a plan and have been trying myself but have been getting nowhere. Finances are like sobriety...they get better with time.

bigsombrero

I am sorry to hear you are feeling so troubled. Been there. When the bill collectors started calling I told them to go to hell. That was when I was drinking, unfortunately that doesn't make me immune and I still had to pay off my debts. Needless to say this is indeed quite a stressful situation and it can drive you nuts. For me, there was a terrible gnawing in my gut. No matter how much I had, I knew I owed a ton of money to someone and they were coming for it...and when it's a lot of money, they WILL come for it.

Can you settle? I worked with my card companies - I had gone into trouble with a few of them. When I stopped using my cards they asked me if I would like to settle. I worked with all of them and got my payments reduced. It was hard but it works. In another case I dealt with collections, then legal action was taken. I got the action dismissed by working with the law firm who was pursuing my suit. I only ended up paying about half of what I owed.

Again, I am just trying to relate my experience. Someone above suggested credit counceling - I have never gone but I would go in a heartbeat, knowing what I know now. GOOD LUCK, and remember being sober throughout this will help big time.

Mountainmanbob

Mizzuno

Well, I had this massive hospital debt from when i was in my teens. I decided that no matter what, I was going to pay it off. Slowly but surely, 4 years later I paid off that bill. You can get out of this. This will get taken care of. One step at a time. its good that you are with a consolidation company. It could really be beneficial.

FeenixxRising

I've called my credit card companies and have had my interest rates reduced. It's worth a phone call. The reduction won't be great, but if you're paying over a long period, the amount you pay in total interest could be significant.

Most of all, right now, stop spending beyond your means.

Toss

I'm in the same boat. My wife did not work for five years and we were reasonable for a while. Then the little things started piling up (and a few big ones) and you know the story, the slippery slope begins.

I have paid off about 40% but still owe quite a bit. Luckily my wife got a job in town, so that is helping nicely.

When I read your thread title, I thought to myself "Hey, sounds like me". Then I realized the reason money is still tight, I stopped using the credit cards, so I'm living in the real world.

I've thought the same thing, get a personal loan to have a set payment and pay it off without it compounding, I'm kinda chicken to go ask, but I think I will.

Your not alone in this boat, at this point since I stopped drinking, I estimate I've saved roughly $1,800, which is nuts!

With my kids going to college in the next decade as well as braces, etc...., I want to pay these off so bad!

Good luck,

Toss

avocado

I stopped paying my bills. I don't see a point.

Mountainmanbob

deeker

ur askin the wrong person lol. I am 51 lost everything, Bankruptsy! No credit. No worries anymore! haha

I owe 20,000 in doctor bills, oh well I can't pay them now. I live from check to check I live with my folks. I have nothing! Ya know what? I am clean and sober woohooo! I had it all before and I was miserable, now I have nothing and I am deliriously happy. haha!

Go figure! I live 24 hours at a time today. All my needs are met. God is awesome! Just do your best! It's all you can do and don't worry be happy!

quitforme79

"Then I realized the reason money is still tight, I stopped using the credit cards, so I'm living in the real world."

Yup Toss! I actually cut up all my cards a few months ago so you're right, that's why I feel even more broke lol But I needed to do it...Thank you all SO MUCH for your advice and well wishes. I have been sorting this all out since I posted a few hours ago. After speaking with the credit counselor for almost an hour, I decided to go ahead and chip away at it on my own as my debt is really not THAT much to risk worsening my credit score by joining a debt management program (apparently they lower your payments but you have to close all your accounts and my payments are on time so this would not be good for my score). I sat and really thought about all the options though which is a wonderful gift of my sobriety- not making impulsive decisions. I even wrote it all out and budgeted for EVERY SINGLE EXPENSE with a debt payoff plan that will last me on paper until the end of this July. After that I will reassess. Apparently, I am blessed to have enough income to really make a dent if I just stick with this budget. Who knew that I should actually look before flipping out? LOL I am still nervous because I have to change my money ways--I don't even know where all my money is going so this budget should really keep me tied to what I should be spending money on. Sorry I am rambling now but thank you all once again for making me feel like I am not a loser...just another alcoholic who is putting stuff back together one day at a time!

DryRoastJim

I too am on the financial Titanic, but I have opted for bankruptcy. Although extreme it gets everything off your plate.

There are some considerations however;

I don't know where you live, your bankruptcy laws might not be as good as a consumer proposal. If you are looking to buy a house within 7 years, it is not a good idea. If you do have a good job, you may find that the payments would be close to a consumer proposal.

Like admitting alcoholism, there is NO shame if you are in serious financial troubles. And just like alcoholism, you do need to get help.

Be wary of "credit counselors" too, they tend to represent credit cards companies. The rule of thumb is 33 cents on the dollar.

quitforme79

Oh and I think why I haven't been able to stick to a budget before is because I want everything now so when I don't see my balances going down I say "screw it, I am going out to eat or to the movies or buying a shirt" This will take time and persistance...

Fandy

Quitforme i think you are making sound financial decisions and the budgeting is something normal folks do all the time....(my mama called it living beyond your means when i had credit card bills).
Being sober doesn't mean we should live in denial, even though it can mean you've gotta clean up the mess you made. Life isn't pink ponies just cos your sober.
Congrats, You are paying your bills and taking responsibility....from my experience and own overspending, you can improve and repair this kind of debt issue in 3-4 years

Zalula

I was in the same boat. I used Debt Reduction Services to work with my creditors to lower my interest rate then they figured out the payments I would need to make in order to pay them off in 5 years. I pay them one payment a month and they send it out to all my creditors. It takes the burden off me since I travel a lot and frequently missed payment dates. Now I don't worry about it!

Good luck- you can do it. It is hard but doable!

Stay strong-

Kari

SoberJohn

Check out Dave Ramsey online. He has some great tools out there for getting out of debt without bankruptcy. Just a suggestion but many people have used his methods including a couple of my friends and they really got out of debt completely. Good luck.

miyako

Between the IRS and the state I owed 20K. They put me on a 5 year payment plan. I paid off the state in 2.5 years and I paid off the Fed in 4. When this started out I thought I would sink like a stone and that I would NEVER get out of debt. I considered suicide, it was that scary. The LAST thing I ever imagined was that I would not only pay these debts off EARLY but at the same time .. boost my credit rating 200 points, nearly zero my credit cards AND buy a nice townhome. If anyone had looked in a crystal ball to tell me my future when that IRS debt slammed me between the eyes, I would not have believed them.

I admit I was helped some by the deflation we were going through at the time, and by the fact that the IRS charges a very modest interest rate on debts. On the other hand, I had to watch my budget very carefully to make sure I had my monthly payments ready for them, and I signed up for a credit watching service so I could do everything possible to improve that. I also took on an additional job for 6 months and I did dogsitting jobs whenever I could.

When I looked back at all the stuff I did for myself when I was totally underwater with scary debt (and still drinking) I realized that it is possible for me to do quite a LOT with my life, just by using my head and being consistent and determined in my efforts. If I hadn't had that experience, I don't think I would have been able to convince myself that I CAN stop drinking and that by exerting my will power I can kick the bottle out of my life.

You need to take a look at the fact that you have stopped drinking, give yourself full credit for that remarkable acccomplishment, and then apply that same energy and common sense to getting out of debt. All the suggestions here make a lot of sense, but I never listened to any good advice when I was telling myself, "I can't!" No matter how bad this looks, you can turn it around. If you can stop drinking, you can do this.

Just saying.