How did you get out of financial ruin?

19 comments

1. I heard filling bankruptcy could help remove your debt, but honest idk this seems like a problem for r/personalfinance

2. I boomed the mf i owed money too. Ain’t heard shit since.

3. That’s a big question without a lot of details… but there are definitely programs where you can call and get help.

   Broadly speaking- step one is get a budget and stick to it. Get payment plans going on your different debts and pay off the lowest debts first. Then put that money towards the larger debts. Then start rebuilding credit as needed. Figure out how to build a modest savings so you don’t have to accrue new debt while you go through this process.

4. Sold my body to the streets!

5. I learned a marketable skill.

   While it’s different for everyone, for me I googled coding on Youtube and taught myself to code. I started with VBA early on. I picked up python after I got a job, and then moved into machine learning and optimization modeling. All off of Youtube.

   You could pay for formal learning if that’s more your style. In either case, learn a skill that’s in high demand. Doesn’t have to be coding if that’s not your thing. I know truck drivers are in seriously high demand right now. In the US region I’m familiar with, wages average $70k a year. And many are getting brand new trucks to drive because companies without the perks aren’t able to keep the drivers. They are literally naming their price. I know folks in their 20s up to their 50s getting their CDL license and making bank.

   The job market is hot right now. Consider your options, learn a skill, and keep improving. You don’t have to keep the same skill your whole life. Just keep learning and growing. When I started my journey, I was a young in debt pizza delivery driver with a car that literally had the mirror and other pieces duct taped on.

   -Best of Luck

6. I found a cheaper place to rent, cut back on my stupid purchases, was strict with what I spent on food. Got a cheap bike and cycled to work. Sold as much shit on eBay / gumtree etc as possible — made a couple of grand. Worked like a MF and got a few pay rises. Didn’t have a proper holiday for a few years. Then pandemic hit and lockdowns. That saved me more in a year than I had in two years before it. I stopped Amazon and Spotify, kept Netflix and a cinema card (that was a lifesaver).

   It’s boring, but get into a good routine and keep your focus on the end result. Give yourself a reward once a month — go out somewhere with friends or other half. But be disciplined. Don’t make unnecessary clothes purchases. Review what you spend your money on and cut it all back.

   I can’t tell you how amazing it feels to finally get in control and get out of debt. All the hardship is worth it — really, really worth it! Good luck and stay strong.

7. Look up Dave Ramsey, books, on YouTube, radio, etc. Start with Financial Peace University. Baby steps.

8. Checked your other post and got more info. Sounds like you’re in a bad area for your profession… There’s States/areas where teachers make decent money and have a moderate cost of living. Sounds like you may be where teachers dont make much and have a higher cost of living. Look into other states, smaller towns, and private schools for better pay. But I think everyone especially single people are finding it harder to stay ahead in this economy also.

9. There’s only 3 ways to get money in this life.

   Be born rich.

   Sell drugs dont get caught.

   Be the first to get in on the ground levels of booms and bust. Like the Gold rush, The oil boom, The tech boom, Social media boom, Marijuana industry boom.

   Other than that were all fucked. The entire system is carefully designed to bleed us dry and give us just enough to live but keep us enslaved.

10. Downsize your life. Stop spending money on shit you don’t need. Get a smaller cheaper apartment. Sell your car if you have payments on it and buy a used car that you can pay off. Put in more hours if you can.

11. About 7 years ago my wife and I were insolvent, buried in all kinds of debt and our minimum expenses were more than our income. So I took a look at where the money was going, line by line. And I looked at our credit cards, our medical bills, and figured out that we were paying $950 a month in interest, late fees, and overdraft charges. That’s just money being burned to make someone else wealthy. What we did from there was get a personal loan to consolidate our debts. The single monthly payment was quite a bit less than the combined payments to everyone else and the monthly interest accrued was something like $200 instead of almost $1000.

    After that I started managing the finances myself and started writing my budget. If your income is predictable, you should be able to write a budget. I write mine a year in advance. I know what will be due and when, and about how much it’s going to cost. Predictability is HUGE when it comes to finances. Obviously, the further out things are, the less accurate they are going to be, but I can take a look at what impact every expense has so I can make plans to adjust it. Like oh shit, just got a surprise medical bill after my son broke his leg. Let’s pay that on the next paycheck and move the car payment over to the 25th. Voila, no overdraft charge.

    You can start by just cataloging one month’s spending. Collect a list of all of your debt amounts, your minimum monthly payment, and the interest rate. This will help you prioritize which ones to pay off first. I don’t like Dave Ramsey’s method but if you need specific guidance that is a good place to start.

    Here’s where he’s wrong: always pay your highest interest debt first. Every dollar you pay on a high interest debt has the most benefit to you. The Ramsey approach has you paying the lowest debt amounts first and depending on the amounts that might be a good idea at first. There is a big psychological benefit to having some early success when fixing your finances. However, when you are getting money for free (by which I mean at low/zero interest) you should take a long as possible to pay it off while focusing on higher interest debts.

    Example: got a $16,000 medical bill for my wife’s appendectomy. Insurance company fucked us. In the shirt term it seemed insurmountable. We made a payment plan for $150 a month for 9 years. But there’s zero interest, so any “extra” money in my budget should go towards something that is charging interest. Something like a store credit card – those are usually 22-30% APR so get that debt handled ASAP. As you get things paid off, work down the list of debts in order of interest rate.

12. Move to somewhere else that has a lower cost of living. Use apps like Upside to make cash back on purchase. Only use Credit Cards if you got the money like a debit card. Use Cash Back Credit Cards. Just be straight up disciplined. Work more to get out of the debt. Donate Plasma and thats what I can think of while being tired.

13. Make a budget every month and stick to it. Track your progress

14. Bankruptcy. Got on a budget, changed careers, higher pay, threw 80% into investments/retirement. 15 years later doing pretty well.

15. Make a list of all your debts, High balance to low.

    Then, the same list, with the highest interest rate to lowest.

    Make every payment every month.

    Stop spending every dime you can. Once you’re down to “*I can’t possibly shave any more off my expenses*”…..shave off another 30% (trust me….it’s there).

    Take **all** those extra dimes and start paying massively on one of your debts until paid completely (either highest debt, or highest interest rate….makes no difference. Pick one).

    When that one is paid off, find the next one.

    Rinse, repeat.

16. Take on a second job if needed, pay down the smallest, highest interest debt first. Cut out anything you don’t need. Hustle. You got into it, you can get out of it.

17. I’m with you homie, I’m just enjoying my time whilst studying and hopeful for my future

18. I used Google to find a spreadsheet which helps you snowball debt. Worked brilliantly and the relief I felt once I saw what an affordable plan with milestones and an end date looked like was unmeasurable. Even when that date was years in the future.

19. I worked allot of overtime. 80-90 hours a week. Did that for the majority of 2019. Paid off the entire £5,000 I owed. Got myself back into debt since then and I’m back to square one….