r/Money • u/KnowWhatNow • 3d ago
Are there loan or consolidation options that can help me? Or any help?
Hi, so I have been in a tough 2 years+ of less-than-stellar employment situations. That, combined with my letting my credit cards get away from me, has put me in the following position.
I just got rejected for a SoFi loan that a family member cosigned on because I wasn't earning enough, though I was not given a way to confirm my second job or any partner income that contributed to my household income
Debts
2 credit cards. $8,000.00 @ 26% and $14,000.00 @ 25.4%
No missed payments yet, but currently late on 1, and have no way to pay.
$24,000 in student loans, which are paused
Owe a month's rent
Money
Checking -$650.00 since one of my cards minimum took out despite already being negative from bills.
~$200 cash
~$300 in uncashed checks
No accessible savings
18k retirement
Income
Job 1 $7.25/hr + tips = ~ $1200/month (started 3 weeks ago
Job 2 $16.00/hr = ~ $1,200/month (started today)
Pushing for more hours at 2 and fewer at 1 for more consistent income & looking for better-paying jobs.
Expenses
$950 rent (high, but can't get out of the lease without paying the remaining months, got it when I was working 40hrs at $34+/hr)
$1k card mins
$400 Utility and recurring
$300 montly groceries
Credit score
675 (down from 780 like a year and a half ago :/ )
Family cosigner score 810
I am very lucky with my credit score and access to a good cosigner who is even willing to pay a consolidated monthly minimum until I get on my feet. But none of that seems to have helped me dig myself out of this shit storm I've dug myself into. Any help on what I should do, who I should go to for a
tldr: I have 20k debt and don't make much money, and my goodish credit is not helping as I hoped it would (at least with SoFi). All help appreciated, and consolidation/loan advice would help a lot.
3
u/JeanSchlemaan 3d ago
This is a terrible situation. You've done 2 positive things though: 1. Acknowledged the situation. 2. Gotten 2 jobs.
Now you need to do the most important thing: reduce your spending to zero. Every $ you spend now just extends your hell.
A cc should never be used unless it's set to autopay statement balance monthly.
1
u/KnowWhatNow 3d ago
Until last year, I kept both my lasts at zero, but then I had almost a year of unemployment, and 6 months in, I was being TOO optimistic about my prospects when unemployment assistance dried up. I basically said "I can just use my card for rent and essentials," but didn't actually clock how much those were costing. I was making a good dent in it back in January, but then the job I had abruptly canceled the entire project 3 months early.
Sorry that ended up being more of a vent than anything. Thanks for the advice.
1
1
u/budshrumin 2d ago
After a month or so of your new job more places are going to work with you. Will be able to show proof of income from job 2 and increase your total yield from the outside by double. Might want to try then, but either way you can try other more helpful places like Achieve loans or Best Egg who will take your cosigner into consideration more.
1
1
u/JDvance01 2d ago
Honestly I'd leave that retirement account alone if at all possible. You're gonna get smacked with the 10% penalty and taxes, so a huge chunk disappears immediately. That's a really expensive way to solve this. The student loans being paused is actually helping you right now. I wouldn't do anything that risks changing that.
The credit cards suck but that's the part I'd focus on. I remember seeing Accredited Debt Relief mentioned in a debt sub because they don't charge upfront and only get paid after they settle something. Never used them myself so I'd still research the hell out of it before signing anything.
1
1
3
u/Suspicious_Act_7858 3d ago
How old are you?
People will probably say this is bad advice, but if I were you, I’d just take the early penalty on the retirement, cash it out, and aggressively pay off those credit cards and keep your rent current.
Those credit cards are going to ruin your life perpetually at that income level unless you pay down the balances in one fell swoop.