I was living within my means. Then I became involved with someone. I helped this person get a car. I myself already had a car & motorcycle. We are together still. Our combined incomes are not enough. I work a full time job + a part time job. Rent has increased daycare increased. Expenses keep going up.
We haven’t fallen behind yet but its only a matter of time. My credit score has gone from very good to very poor. I’ve tried to get out of the high payment vehicle but no one will refinance me for a car with a lower payment. Did I mention my girlfriend has bad credit? I hope this is enough background.
I’m not sure what my question is. I’m going to fall into debt. I want to avoid it.
Unfortunately the only way to heal financial problems without impacting your credit is to increase income, reduce expenses or a combination of the both.
It certainly sounds like you are working harder than most people and that you expenses are increasing to the point where you can barely make it.
At some point you will reach a tipping point where there just won’t be enough money at the end of the month to meet your obligations. When that time comes, don’t borrow money, take a cash advance or get a payday loan. Rather than react emotionally to a bad situation we need to think it through logically.
I don’t think any sort of credit counseling payment program is going to be helpful since that won’t reduce your payment, while it might reduce your interest rate. But the interest rate isn’t what is breaking you, it’s the minimum payment that is creating the pressure.
Download a free copy of my book “Eliminate Your Debt Like a Pro.” Read through the book and pay special attention to the debt reduction section that starts on page 81. If you apply those suggestions and you are still unable to make ends meet, then we’ll have to move on to a Plan B for you.
After you read the book and do your homework, come back and give me an update in the comments section and let me know how it’s going.