Where do I start?
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| Thu, 10-21-2004 - 11:59am |
Hi. I'm brand new to this board, and I am thrilled to have this available to me (I've been on the Job Seeker's board for over a year and a half). I can use all the help you can offer.
Long, long story short, I've suffered (and I mean SUFFERED) two lay-offs in two years with long spans of unemployment in between. I lost my house last year and have an incredible (and I mean that) mountain of debt including credit cards, school loans, old utility bills, and owed taxes (ironically from my Unemployment payments that weren't enough to cover my bills in the first place). I've had to put my belonging in storage, relocate to another state (Georgia) to move in with my sister, and I've been living in her computer room for the past ten months. I just got a new job (I start next week) and it's my first glimmer of hope to get my life back. My wonderful sister has not only let me stay rent-free (I'd only been able to find short-term temporary work and made little money over the past year), but she has purchased my personal items and kept me fed while I've been looking for work. While I appreciate everything she has done for me, I have always been self-sufficient and have felt like the biggest leach and loser over all this. She isn't being nasty about it, but it is obvious that she would love nothing more than to have her house back to herself as she had given me "deadlines" to get things together ("do you think you'll be out by June?...September?...Christmas?".
Here are my questions:
1. Should I try to find someone to rent me a place right away (if at all posible), and then approach my debt with what is left over after I pay rent and utilities?
OR
2. Should I mooch off of my sister for a few more months and save up some money before trying to move out?
OR
3. Should I continue to mooch, but pay off some of my more pressing debt before even attempting to apply for a place since I'm terrified that my credit is so bad right now that no one will rent me anything?
Also, should I go to one of those Credit Counseling places and just hand over my future checks, or should I try to deal with my creditor on my own first?
WHERE DO I START???
Thank you for your help.

Well, it's a start to admit you have debt that you need to handle and congratulations on getting a job, that will help head you in the right direction.
The first thing you need to do is sit down and calculate exactly how much debt you have and who exactly you owe to. Once you get this figured out, then you need to call all of the people you owe and try to see what payment plans you can set up with them. It will be a long, difficult task but you must get some form of communication going with them. Anything agreed should be followed up with a letter.
You need to look at your credit report, this will help you determine what credit risk a future landlord might think you are if they require a credit check. I would try to see how much longer your sister will let you stay, but I would offer to help pay some rent/utility money to her. The longer you can stay with her, the sooner you can save for your owm place. You do need deposit money, and you need to know what your payments to your outstanding bills will be, so as to see what rent to afford. Also, I wouldn't be too hasty about moving to a place of your own till you see whether you like the new place you're working at. Talk to your sister openly and honestly about how much you can contribute to her, and how long she can let you feasibly stay for. I would take the money rent for a place would cost and put that into a savings account, with the remainder I would distribute that amongst my bills.
These are just a few suggestions, going through old posts should give you more suggestions. Good luck and keep posting.
Thank you, thank you, thank you.
You've given me some great information and some concrete steps to take. Though the thought of sitting down and calling all...those...creditors makes me woozie, you are right. Honestly, at this point I don't even know how much or who I owe anymore (it feels like the whole world). I guess getting a copy of my credit report is the first step. I just hope I don't throw-up or pass out when I get it.
I know it may take me a while to get it together before I can go out on my own again, I just don't want to be a burden to my sister. It's not like we're kids, which is the other reason why I feel I should give her her house back as soon as I can. But I will offer to pay her rent now that I'll have income again. Maybe that will make us both feel better (I won't feel like such a mooch).
As far as my new job is concerned, as long as it has taken me to find this job I don't care if I hate it (though I think I'm going to like it), I hope to be there till the end of the next century (they are going to have to dynamite me out of there) :)
I will also look at some of the past postings too. Thanks again.