I’m Horrible and Suck at Managing My Own Money. What Can I Do? – Jim

“Dear Steve,

Situation *
Tax Debt – $175,000
Credit Card Debt – $90,000
interest on top of those

All I’ve wanted all my life is to have someone to manage my money and only give me what I could spend without repercussions. I’m awful with money and have gotten myself in so deep I don’t know how to get out.

This has been eating me for four years now and affects me every day, pretty much all day. I have about $175,000 in tax debt and $90,000 in credit card debt (minus whatever the current interest is). I saw a bankruptcy lawyer and he said to deal with the IRS, thinking that they IRS would want all my available income for five years and then I could file Chapter 7 since I’d have no money left over.

Here’s the rub… I lost my job last year, and am now working a contract job for 20% less without health insurance. I have been putting off calling the IRS to get the payments started because if I lose my job again and can’t make the monthly payment, I’ll be in deep trouble. I’m deathly afraid of going to jail. I’m 46 and have no savings for retirement. I’m also gay with no children, so my older years are looking more and more scary.

Please help me get over my paralysis and figure out what to do.



Dear Jim,

IRS debt older than three years old can be included in a bankruptcy and discharged with all your credit card debt.

You can click here to find a local bankruptcy attorney and talk to them for free about your specific situation. Get the facts and then you can make an informed and educated decision if bankruptcy is right for you.

I’m not so thrilled with whoever you met with last time. I’d definitely get a second bankruptcy opinion about your situation.

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The concern for me is that the inability to afford health insurance and save leaves you at a substantial financial risk if you run into an unexpected life situation.

Don’t feel bad about not being able to do a great job managing your money. Not everybody does. Typically creative and artistic people are not good with these tasks while very detail oriented people are. Even when people find mates, savers typically attract spenders.

The person you are looking for to help you moving forward is a daily money manager. I’d suggest you visit the American Association of Daily Money Managers website and find someone to assist you moving forward.

Don’t beat yourself up over this. Some people just suck managing money and getting professional help is a smart thing to do.

Let’s deal with the old debt and then regroup for a better life moving forward.

Please post your responses and follow-up messages to me on this in the comments section below.


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.
Damon Day - Pro Debt Coach

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