I’m currently living with my mom and sharing half the rent for a 1 bedroom apartment. I work full time as a security officer for [ ] San Francisco. Age 33. My mother is 68 yrs of age.
I have taken out money loans from lenders such as CashCall, CashnetUSA, and 3 others. The total amount would be more than $17,000 of what was loaned to me.
I’ve been making only the minimum amount of payments for all 5, and it has made it really difficult for me to have anything left for the cost of living. It’s a struggle for me to pay for rent, and even to travel to work that I had borrowed some money from my brother.
I have past due medical bills valued over $600 as well. I went to Credit union banks (Patelco, OneMain) to apply for debt consolidation loans for $18,000 to bundle up all payments into one monthly manageable payment.
Unfortunately, I was declined on all attempts. Soon after I called for help from debt settlement companies but did not commit to their services just yet because I was researching other possible options. They are constantly calling me for their services.
But, bankruptcy was the other option that sounded like a better idea. I heard of some people getting out of debt and rebuilding back their lives and wanted to see if this was an option for me, but I lack the knowledge of what I can do next or how to speak to an attorney. Any advice you can give me will be greatly appreciated, please.
From what you’ve shared it appears you turned to less mainstream lenders because you were having issues and suffered from a poor credit score at the time.
I understand the emotional drive that leads us to make those decisions. But the reality is when we borrow money at high rates during times when we are sinking financially then the chances of us digging our way out are slim.
When facing money troubles you can either increase income, reduce expenses, or a combination of the both. Since you live in one of the most expensive places in the country, I doubt there is much room to reduce expenses.
You are facing the same economic reality that teachers in the Bay area are dealing with. So many people doing important service jobs are finding themselves unable to live in the area they work anymore.
Bankruptcy will give you a fresh start, you can rebuild your credit better than before, and learn from the mistakes you may have made so you can do better in the future.
I think you should read about how to find a good local bankruptcy attorney and have a free discussion about what bankruptcy would mean for you. Bankruptcy is the fastest way to get a fresh start for the least amount of money.
Bankruptcy will give you a legal fresh start but no debt intervention process is going to change the issue of local living expenses outpacing income in San Francisco. That’s a situation you will have to closely monitor moving forward. You already know borrowing to make ends meet at times like that is not going to be a good move. Lesson learned.