I’m a Car Salesman Limping Along in Debt. – Bryan

“Dear Steve,

Right now i currently owe around 24k to credit cards and have a car payment (400) and rent of ($1000). I sell cars for a living so my income fluctuates greatly. The reason I am in so much debt is because ive never had any savings and when things hit the fan i used plastic. Recently I was out of a job for 3 months and really hurt myself. Now my beacon(equifax) has dropped from the mid 700’s to a 505 in the last few months because I havent paid on them at all, as I have been trying to just pay all my other bills.

Steve, I am a 26 year old single car salesmen and am in heavy debt to credit cards (24k) and have not paid on 4 out of the 5 for almost 3 months as I was recovering from not having a job. My income can change very easily each month and even on a good month with a tight budget the most I might have left over is 1k a month. Should I just build a 3 month savngs cushion before paying attention to the credit cards or what is my best plan of action?



Dear Bryan,

Right now your credit already sucks. Now is the time to ask yourself if you have a greater responsibility to fix the past or the future. If you want to limp along and try to save money, repay debt, get out of collections and improve your income, then go with that. However I would like to suggest an alternative view.

Let’s agree that what has happened up to this point has been unfortunate. If you’ve learned from those mistakes it is now time to move forward and do better. There is no sense wasting a perfectly good mistake, I always say.

Probably a more logical path is for you to click here to find a local bankruptcy attorney and go talk to them. If you elect bankruptcy after speaking with the attorney you will probably do a Chapter 7 bankruptcy and be out of debt in a few months. You debt will be eliminated, all collection calls will stop, and you can’t be sued over the debt.

Once out of debt you can apply what you’ve learned, which probably is two important lessons.

  1. If your income wildly fluctuates you need to save money is good months to use in down months. Stash that cash in a savings account tied to your checking account for easy access.
  2. More importantly, you’ve probably learned it is harder to make sales when your life is in the crapper.

If you decide to go the bankruptcy route it is easy to rebuild your credit, read this.

Please update me on your progress by Damon Day - Pro Debt Coach

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