Casie wrote to me through the GetOutOfDebt.org site and asked the following question. If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.
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“Dear Steve,
I am a single mother of a 3 year old boy. I am unemployed. I have hospital bills that I can’t afford, I have a $200 dollar loan that I can’t pay back, I have child support fees I can’t pay. I have a $600 ticket for a dui I can’t pay. I’m sick of it. Just seem to be in a hole and I can’t get out. and I have to pay rent, and food to be able to support myself and my son so I have no extra money to get my debts paid. I don’t have family to help me either.
Well, what the heck do I do to get this taken care of?????
Casie”
The Answer:
Dear Casie,
You’ve got two basic choices, stay the path you are on or alter it.
I suspect that your $200 loan might be a payday or cash advance loan. It does not sound as if there is an expectation of an increase in income. So depending on the level of your debts, you might need to go and talk to a local bankruptcy attorney about discharging your debts.
The problem here is that child support and DUI fine may not be included in your bankruptcy. So if bankruptcy will eliminate the other debts and that give you some breathing room, then it is a reasonable path to follow. Otherwise, the only way out is to increase income and that might be through accessing public benefits to reduce your out of pocket costs. Programs like food stamps, now called SNAP.
