So, here’s the deal. I was killing it with my credit score earlier this summer. No debt at all. But then I bought a used car and ended up with $2500 in debt due to some unexpected expenses (got carried away on a road trip too). Spent $8800 in total, but the car is a solid find, so I’m happy about that at least. Clearly, I messed up on my calculations.
When I got back, I was in a rough spot dealing with some serious depression. I admit, I went overboard and spent a ridiculous amount on Uber Eats. I was well aware of what I was doing, just didn’t care. It’s embarrassing to admit, but now that I’m getting help and thinking straight, I realize my mistake.
I have a decent job at a federal agency (let’s keep it vague). I make $60,500/yr, going up to $62,000 in October, and hopefully hitting $72,000 in the near future (maybe a bit more with cost of living adjustments). I’m grateful for the stability there, but my financial slip-up over the summer has left me in a bit of a mess.
I live with my partner and we split the expenses, with half of my income going to our joint account for rent, bills, and savings. I have my own savings account (currently at $0) and a healthy retirement fund that I refuse to touch. My partner is pursuing a PhD, which comes with its own financial challenges for us.
My biggest issue right now is the debt spread across two credit cards. Making payments twice a month is draining me, especially with those high APRs (30 and 32%). Capital One won’t let me consolidate, and I got rejected for a consolidation loan from PNC Bank due to my recent credit score drop.
I take full responsibility for my situation, but it’s a big wake-up call to prioritize mental health. My depression really clouded my judgment, and I wasn’t thinking straight.
Any advice you have would be a huge help. Thanks in advance!
- Struggling Scott
Response from THE MONEY MINDER:
Hello There,
I understand your frustration and the financial stress you are currently experiencing. It’s clear that you are taking responsibility for your situation, which is an important first step. I commend you for being open about your struggles and seeking advice on how to move forward.
Given your current income and financial obligations, it seems like consolidating your debt would greatly benefit you. Since Capital One doesn’t offer consolidation options, it’s wise to explore other avenues. While it’s unfortunate that you were declined for a PNC Bank consolidation loan, don’t lose hope. There are other financial institutions and credit unions that offer debt consolidation loans at more favorable rates. Take some time to research and compare different options to find the best one for your situation.
In the meantime, it’s crucial to come up with a solid repayment plan to tackle your debt. Start by creating a detailed budget that outlines your income, expenses, and debt payments. Consider cutting back on unnecessary expenses, like dining out or other non-essential purchases, to free up extra money to put towards your debt. Making consistent and timely payments, even if they are small, will gradually chip away at your debt.
Additionally, since you mentioned struggling with depression, it’s important to continue prioritizing your mental health. Consider seeking support from a therapist or counselor to help you navigate through your challenges and develop healthy coping mechanisms. Taking care of your mental well-being is essential for your overall success and financial stability.
Remember, this is a temporary setback, and with determination and a solid plan in place, you can overcome this financial hurdle. Stay focused on your goals and make small steps towards financial freedom. If you need further advice or support, don’t hesitate to reach out for help. You’ve got this!
Best of luck on your financial journey,
THE MONEY MINDER
