I am 22 years old in $25k debt and having a baby on the way. Currently making about $2.8k per month and living with my in laws.
Hopefully going back to bartending soon as I work in F&B right now and the slow season for restaurants is about to end.
Have 25,000 in credit card debt that I haven’t paid or answered the phone to in about 5 months. I have no idea what to do.
Have considered filing for bankruptcy but my in-laws told me I shouldn’t because it would horribly affect me ( they are very financially literate business owners but they don’t offer much advice )
My parents told me that if I wait a few years then the debt just goes away but I could potentially be sued. I’m able bodied and love to work I just suck with money.
I have a baby on the way and I don’t know what to do and need some guidance. First post on this sub. Thanks
Edit: I’ve come to the decision I’ll be calling my creditors tomorrow and fixing my situation myself. I have too much to lose and so much to gain.
Netizens’ comments
- Phew. That’s a lot. Well, ignoring the debt is absolutely the wrong thing to do. But facing your finances and getting ready for fatherhood is absolutely the right thing to do. Bankruptcy is not necessarily going to ruin you, but it may not really be the long-term solution for you, either.
You need to keep track of every single cent that goes in and out. I mean that literally. You shouldn’t spend any money or make any money that you don’t record. Learn where your money goes, so you can figure out how to stop bleeding out your hard-earned dollars.
As far as your debt goes. Start by calling your debtors. Explain your situation, tell them you want to get right with them, and see if they will settle or give you reasonable payment plans.
One of the most valuable gifts you can give your child is the ability to handle money responsibly. And to do that, you need to educate yourself.
Best of luck to you. - 25k is not a lot of money. You’re 22, it feels like a lot. It’s a hysterically small amount of debt to be considering bankruptcy over.
- If you are in trouble now because your main job is seasonal then that’s going to be even worse once the baby arrives. Cut up the cards so you can’t make it worse. If you can’t pay cash you can’t buy it.