What financial problems do you guys have?

I felt like sharing in hopes of making me feel better because apparently my financial problems feel like they accumulate every week or so.

I owe 3 of my siblings around $1200+ due to responsibilities I could not do alone, I got credit card debt upwards of $1500, I got to pay for a storage facility and gym

I felt like sharing in hopes of making me feel better because apparently my financial problems feel like they accumulate every week or so.

I owe 3 of my siblings around $1200+ due to responsibilities I could not do alone, I got credit card debt upwards of $1500, I got to pay for a storage facility and gym membership but I'm gonna cancel these and move in with my parents for now (though the gym cancellation fee and the annual fee will take out yet another $100 out of me), I got a phone that requires $40 a month, and I don't have a "real" job, as in my only source of income is a freelance transcription job that only pays pennies a word due to me losing my previous job that got me at least $200 a week, which is what I could work with, but alas, I lost that job.

It's not much, I know, but still, I owe money to people and my current source of income is not enough.

The only thing that is keeping me calm and hopeful is the fact that I'm a content creator. I'm working on a game that I want to put through Steam. If not only can I get that game on that service but sell it, I'm sure I can pay off these things in the long run. I just gotta struggle for some time until I can make that happen.

Best Answer:

Arthur: I was in your spot, I was even deeper in debt than you back in the early-mid 2000s, today I'm well on the way to being a millionaire without ever having a high paying job. These are the steps I took, you might not like them but they are doable by anyone:

1) Call your creditors. Inform them you intend to make good on the debts. Make any good faith payment you can. Creditors would rather you eventually make good, rather than selling your debt off for a pittance to a debt collector.

2) Play offense – time to get to work, work overtime, work weekends, work a second job, a third job if you have to. Keep reminding yourself this is temporary, you’re tough, this is your “the tough get going moment.”

3) Play defense – cut your expenses, you are going to be working so much you won't need cable, or a fancy sports car or a smartphone… get your life back to basics. Then review and find more things to cut.

4) Start paying off your debts. Make the minimum payment on each debt, except one. Focus on getting rid of one debt first… this is a bit of judgment call, practically you want to focus on the highest interest rate one first (or the one closest to default). But if your highest is large, but you have a small one at a lower rate, there can be some argument to getting that one done first… I can't tell you how good it feels to eliminate one debt forever, even if you have others to deal with. Plus with one less payment to deal with you’re starting to build financial flexibility. Repeat focusing on the next debt. As soon as you can afford to, start contributing enough in any 401K or similar plans at work to capture any matching they have. This is golden free bonus money, get it.

5) OK, once you’re still in debt, but not drowning in it, it’s time to "spreadsheet your life". Start a spreadsheet with your debts and your assets and review them monthly to start. Start budgeting. Keep paying down debt, but it’s time to start a savings fund for emergencies. Sure, you could throw that extra $50 per month at your student debt at 6%, but then when your car's alternator blows, if you don't have any savings, you’re going to have to put it on a high rate credit card because you can't re-borrow on the student loan. On your spreadsheet calculate your Net Worth every month… make a game outta making that Net Worth number grow each month by increasing your assets and reducing your debts.

6) Your debts are winding down, your emergency savings are growing and you still have extra each month. Time to start setting some goals, and start Acquiring Appreciating Assets… or as most people call it Investing. Mutual funds are a good starting spot especially to fund Roths and IRAs, or the new “robo” investment advisers like Wealthfront or Betterment.

If you want you can go the individual stock route, which if you have the aptitude to do (but don’t fret if you don’t most people don’t), I would as there is an advantage to controlling your own tax situation with individual stock portfolio. You can use a low cost broker like Scottrade or if you’re dealing with small amounts at first Computershare has access to a number of Direct Stock Purchase Plans with little or no cost, or check out Loyal3.com which lets you invest as little as $10 at no fee in a select list of companies. Invest, regularly and often, embrace market sell offs as long term buying opportunities. Start with a few solid blue chip companies, and add until you have about 10 of these in different industries before trying your hand at anything more speculative. Embrace the compounding power of dividends and dividend growers.

Other answer:

Arthur:
i was in your spot, i was even deeper in debt than you back in the early-mid 2000s, today i'm well on the way to being a millionaire without ever having a high paying job… these are the steps i took, you might not like them but they are doable by anyone:

1) call your creditors… inform them you intend to make good on the debts… make any good faith payment you can… creditors would rather you eventually make good, rather than selling your debt off for a pittance to a debt collector…

2) play offense – time to get to work, work overtime, work weekends, work a second job, a third job if you have to… keep reminding yourself this is temporary, you’re tough, this is your “the tough get going moment…”

3) play defense – cut your expenses, you are going to be working so much you will definitely not need cable, or a fancy sports car or a smartphone……… get your life back to basics… then review and find more things to cut…

4) start paying off your debts… make the minimum payment on each debt, except one… focus on getting rid of one debt first……… this is a bit of judgment call, practically you want to focus on the highest interest rate one first (or the one closest to default)… but if your highest is large, but you have a small one at a lower rate, there can be some argument to getting that one done first……… i for the life of me cannot tell you how good it feels to eliminate one debt forever, even if you have others to deal with… plus with one less payment to deal with you’re starting to build financial flexibility… repeat focusing on the next debt… as soon as you can afford to, start contributing enough in any 401k or similar plans at work to capture any matching they have… this is golden free bonus money, get it…

5) ok, once you’re still in debt, but not drowning in it, it’s time to "spreadsheet your life"… start a spreadsheet with your debts and your assets and review them monthly to start… start budgeting… keep paying down debt, but it’s time to start a savings fund for emergencies… sure, you could throw that extra $50 per month at your student debt at 6%, but then when your car's alternator blows, if you don't have any savings, you’re going to have to put it on a high rate credit card 'cause you for the life of me cannot re-borrow on the student loan… on your spreadsheet calculate your net worth every month……… make a game outta making that net worth number grow each month by increasing your assets and reducing your debts…

6) your debts are winding down, your emergency savings are growing and you still have extra each month… time to start setting some goals, and start acquiring appreciating assets……… or as most people call it investing… mutual funds are a good starting spot especially to fund roths and iras, or the new “robo” investment advisers like wealthfront or betterment…

if you want you can go the individual stock route, which if you have the aptitude to do (but don’t fret if you don’t most people don’t), i would as there's an advantage to controlling your own tax situation with individual stock portfolio… you can use a low cost broker like scottrade or if you’re dealing with small amounts at first computershare has access to a number of direct stock purchase plans with little or no cost, or check out loyal3…com which lets you invest as little as $10 at no fee in a select list of companies… invest, regularly and often, embrace market sell offs as long term buying opportunities… start with a few solid blue chip companies, and add until you have about 10 of these in different industries before trying your hand at anything more speculative… embrace the compounding power of dividends and dividend growers…

Casey Y:
Get other jobs…that's how you handle this.
anonimitie:
None. I've been careful with my finances and sacrificing most of my life. Result? Financial stability.
thegreatone:
Unemployment.

That's as problematic as you can possibly get.

FakeName:
I want to finance a house but can't afford the downpayment
Helen:
I want to be independent and I cant
Lou C. Ferr:
I empathize with your situation. There was a time I was broke and in debt…then I divorced her. I'm glad to admit that I don't have any money problems to report. Not here to brag, but I've been completely debt-free for almost 11 years.
Kira:
i owe 25,000+ in student loans and it grows more each month in interest than what i pay to it😣 many other bills but that one drives me crazy
Share