'I want to get caught up so that I can get back to enjoying life': I'm struggling to pay my bills and can't qualify for loans or credit cards. How can I break this cycle?

Hey Money Minder, I’m in a bit of a pickle here. I got my first car in May and my bills shot up by $500, plus some unexpected expenses hit me with another $500. Since then, I’ve been struggling to keep up and have been using stuff like Earnin and payday loans to stay afloat, but it’s only making things worse. My mental health is taking a hit and I can’t seem to break even no matter what I do. I’ve already slashed all my extra spending and only buy essentials like gas and cat supplies from the dollar store.

My mom thinks I should try and get a $3000 loan, use half to jumpstart my payments, and the other half to catch up on bills. But here’s the kicker – I can’t get approved for anything because of my maxed-out credit card and recent car loan. Google’s suggestions aren’t cutting it for me, so I’m turning to you for help. How can I dig myself out of this mess without taking on more debt or getting a second job?

Cheers,

Response from THE MONEY MINDER:

Hello There,

I’m sorry to hear that you’ve been struggling with staying on top of your bills and it has been taking a toll on your mental health. It sounds like you are already doing your best by cutting down on extra expenses and managing your finances as best as you can.

Given your current situation, it’s understandable that taking out another loan or credit card may not be the best solution for you right now, especially with your recent financial commitments. In this case, your mom’s suggestion of getting a loan to catch up on bills and create a buffer for future payments could be a viable option, but getting approved for a loan might be challenging at the moment.

Instead of focusing on obtaining additional credit, it may be helpful to explore renegotiating your current debts or payment plans. Contact your lenders or service providers to see if they offer any assistance programs or options for restructuring your payments. They may be willing to work with you to create a more manageable payment schedule.

Additionally, consider looking into side hustles or freelance work that can fit around your unpredictable work schedule. You could explore online freelancing platforms or gig economy opportunities that allow for flexibility in hours worked.

It’s important to remember that your situation is temporary and with careful planning and perseverance, you can overcome these financial challenges. Keep track of your expenses, prioritize your bills, and focus on finding solutions that work best for your current circumstances.

Best of luck in getting back on track with your finances. Remember, small steps can lead to big changes. Take care.

Farewell from THE MONEY MINDER.