I’m Homeless and Hopelessly in Debt. What Should I Do? – Darrell


“Dear Steve,

Went on SSI about 18 months ago, and lost everything. Im homeless now. Getting my food at food banks, and shelter wherever.

My only sorce of income is SSI. I receive 850 dollars a month. I have around 10,000 in credit card debt. I also have about 2500 in payday loans i owe. I dont know what to do. This is my second letter to you. I did not hear back from you on the first one. I dont have one cent to hire a lawyer. Ive looked all around and cant find any places that offer free legal help. Im homeless now. Ive lost everything. Please help (ASAP)


Dear Darrell,

It’s never good to start with an apology but I’m sorry I have not made it to your first request yet. I alter between doing the first in the queue and the last and I guess that first request is somewhere in the middle.

There is free bankruptcy help available through the network of pro-bono bankruptcy attorneys. You can lookup the provider in your state through this link. There will still be court fees to pay to file but that will be significantly less than what most people pay in total for bankruptcy.

Since your income is only SSI, you don’t sound like you have any assets to go after and you are not working, then a second option, as silly as this sounds, is to do nothing. You will probably be sued and you will lose but there is nothing for the creditors to go after.

When you do get back on your feet and start earning an income again outside of SSI then you could pursue bankruptcy to close the door on those old debts. In the meantime, if you are contacted by a debt collector, just be nice, but don’t make a single promise to repay that you can’t afford. Just know you will remain in collections for now and find a way to weather the storm.

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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.

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P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.

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Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
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3 thoughts on “I’m Homeless and Hopelessly in Debt. What Should I Do? – Darrell”

  1. While I highly appreciate the comment above, and definitely know developing a better relationship with god where I feel worthy of his help and love, even though he gives it for free (or so I’ve heard). My heart goes out to the original poster of this thread. I appreciate the advice you gave and have looked into getting credit repair and have found a multi year legitimate solution to the issue, I’m a millennial so I want everything now. I really hope you see this as I’m going to go a bit into detail about myself goals and debts. My background is traumatic although I graduated Highschool and got accepted into College yay! At 18 however I was not ready for college, (inexperienced handling credit cards, no family support, no scholarships) and I went to a 4 year university anyway. Big mistake as by being unable to afford my food and shelter let alone tuition I quickly found myself homeless far from “home”. Stayed and tried to work through it and attend the community college there, to no avail, as I could not receive aid. Long story short collections fees were added to my debt, transcripts withheld preventing me from financial aid appeals in college due poor Stability and Unsatisfactory stability. I started a business and worked many odd end jobs to survive pursuing school despite my issues. However now I have a good job, (still training but working consistently) and I am homeless (living in my functional thank god car) and now I’ve come into some money. Not enough to take care of that debt outright, nor the many other credit cards and bank accounts that I owe money. My credit is suffering and I just want to take care of this quickly and efficiently without dragging it out another month, two months three months. Not another day if I can, Is there any route to freedom that would make Sense here. I don’t think bankruptcy makes sense as it can have such long term detrimental effects with no benefits. What should I do?


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