|
HELP! Completely out of money and overdrafted?!!!
Hello, I'm freaking out and don't know what to do. I'm completely out of money and overdrafted by -$10 in my account.
I'm a college student who just moved off to college less than a month ago and found a new job three weeks ago. It turned out though that in the first two weeks my job didn't give me very many hours as I was training so I only wound up with about $110 for the first week and haven't been paid yet for this last week and won't be paid for this week until next Thursday or later.
My issue is that I have a car payment and car insurance which totals about $425 together and my car insurance was taken out this morning, which is what overdrafted me.
I even sold a watch that I loved to make money ($80) but I sold it online and now I won't get paid for it until the buyer gets it and accepts it, but who knows when that will be when I just shipped it today.
My car payment ($316) is due on the 26th and though I have a grace period I have no idea how I'm going to be able to make this!!!
Fortunately, because I am a college student I at least have a meal plan so I can depend on that for food during the week. However, I have no money for food on the weekends or anything else I might need. I'm also 100 miles behind on an oil change in my car so I don't even feel safe driving it and it needs a synthetic change which is $60! I don't know what to do, I feel like everything is a giant disaster right now!
I can't ask my mom or dad for money because they don't have any to spare and I'm stuck on campus without any friends since I'm new here.
Please help me with some ideas!
[ ]
Want to answer more questions in the Work & School category?
Maybe give some free advice about: Personal Finance?
With college being the most important thing to you to do well and complete, everything else you may want right now has to fall to a lower importance or need. I do not know if the car is your only transportation to school because you only said you moved to college which I can take to mean you either are living on campus or it was your choice of word to describe 'starting' college.
We live in a world where your and my generation as an older adult were still raised in a time of things being instant gratification instead of waiting a long time until we have enough to make a full purchase with no payments. In the set up of today, the bank wins and so many people lose.
I do not know if this is a newer car or an older one. Ideally you would have worked as a teen before college, saved every penny and bought your car outright fully paid for. This will take needing a Dad or a male you trust to go with you if you decide to still do this. Since the car is what is strapping you currently.
Sometimes Hon, we need to make do with less in this type of economy and work our way up to what we really want a lot more slowly. Example, I am currently living out of my van with hubby. It is our home and transportation. Until we can get into low income housing, we have to prioritize our needs and car repair for several grand came first. I hate having to go another winter living in my van but as much as I don't like it, or how inconvenient it may be, having my own place to live right now is an impossibility.
I know you may not have wanted to hear this but either you sell the car or if its a lease, turn it in and do without. Or get a much older but still reliable one which due to age will have lower insurance and car tabs. You probably have 4 yrs of college ahead, and 4 yrs of money being tight and juggling to make ends meet EVEN with your job. If you are living on campus and only need occasional transportation, perhaps something a lot smaller like a moped will do. Heck I even did that for the first few years of marriage when I was 20 and money was real tight and I had sold my car too and made these switches.
Whatever you do, don't go silent with the folks you owe money to. Do call and explain your situation. I don't know what if anything they can arrange and take a much later pmt. but silence is NOT the way to go and I have paid many a bill late. Learned the hard way that a business was much harder on me if I didn't let them know what was going on. However it can be very helpful to just be up front and let them know whats up and not just hope that a grace period is gonna help. Grace period means you're already not paying on time and it will look bad on your record with any business not to mention credit ratings in the future.
As for oil changes, I had a car that required the synthetic oil change too. My 2nd husband and a mechanic friend told me that it is 'suggested' to get it for better performance, at least with the VW I had but that a regular oil change would not kill the car or create major problems. A few people I checked with said it wasn't necessary. But just as a healthy body needs proper nutrition to function at its best, we dont always eat healthy a 100% of the time and it still doesnt kill us. Same with the car. If you put in a couple of regular oil changes and switch off later with using the synthetic it should be okay. But you may want to ask a few mechanics, not oil change places, what they have to say about reg.vs synthetic oil for the make of car you have.
As for instant money, there aren't many options. Even if you could find some other relatives with money to help out this time, what happens next time? There should be buffer income not assigned for any bills just in case of things like this. You may want to sit down and look at you will be earning and if its something that goes up and down in hrs, like my job, then you're in a bad spot, not being able to plan. If its the only job that fits your school schedule, then because of the unpredictability of a set income weekly or monthly, the best is to not overload yourself so that you are riding the line of the limit of your income. I know it sucks not having transportation but I do not know what other monthly bills and commitments you have.
So I have no solution for immediately other than to try to use a pawn shop if theres anything else you can sell. However, it only will help you to get by this one time. What do you do the next time something unexpected happens, a tire goes flat and you need a new one for an example....???
If you choose to try pawn shops, to get your item back you'd have to pay them in time or lose your item. The money they give you is always way below fair market value since they make their money by good second hand prices on the things they sell. So whatever you are offered at one place, dont jump at it, go to several different pawn shops and see which will offer the most money. If you just want the money and dont care about getting your thing back, then you can plan on not paying them to get things out of hawk.
Lastly, even if the parents don't have the cash, did they have any good suggestions for you or did you not tell them? I am removed from knowing all details of your situation unlike them so they may have some better suggestions. Sorry hon, but it certainly isn't easy being an adult and having all these worries of having to handle things. It was so much easier when we were kids and the parents took care of everything, huh?
]
How about taking that car and driving with Uber or Lyft? I hear they pay quickly. There are day laborers that get paid by the day. I would call your creditors as soon as possible and work out a plan with them. Ignoring them is the worst thing you can do. Then, when you get it under control, make a budget and see if you can afford that car. If not, sell it and get a cheaper one. At 316.00 a month, that sounds like a pretty expensive car for someone with little to no money. Best of luck to you in getting this worked out.
]
This website may help you with your car loan situation. [Link](Mouse over link to see full location) and if you're looking for a place that will give you a good free meal on the weekends while you don't have any cash, try a local church nearby. A lot of churches will offer free meals or have food pantries for the broke or homeless. Other places you can try and find a free meal would be a local Salvation Army. Some other advice I will give you that might be useful to you in the future is while you're going to college make sure to save up all the money you can. Don't spend any excess money unless you really have to, or your college years will be your toughest years ahead of you and can make your education and learning experience less enjoyable for you. If you're lucky enough that you got a free ride to college or university that will help you out tremendously with your savings. As for the car and the loan. If you just bought it brand new and keep on having troubles paying off your loan. I'd sell it, pay it off, and buy a vehicle that's less expensive. Main thing is save up all the money you can because an education and having money is power. Good luck to you and your learning.
]
Hi Freaking Out,
Overdrafting an account isn't such a big problem. Banks usually just charge you a small fee when you have enough money to get it back into the positive. Considering you're already in overdraft, you need to know what their policy is. How much can you overdraft, and for how long, and what rate of interest will they charge you? Your best bet may be to use that capacity to ride out the next week or so, as long as you know that you will have the ability later to pay it back, and get your balance back to +
You may be able to borrow money from your college if the overdraft stuff is not acceptable.
How essential is your car? You have had capacity to buy and maintain payments on it in the past, but that may have changed.
I know that moving for College can be stressful, perhaps it would be a good idea once you are back in the green to make sure you always keep a buffer of funds in your bank account to absorb unexpected expenses and loss of income.
If your meal plan includes access to fresh fruit, or any additional servings, take advantage of it. Students are generally not very well off to do financially, and so it's important to take things when they are provided for you. Stock up for the weekend, and you should be able to ride it out. Colleges have to cater for this, but obviously they don't openly support it, so try not to be too overt.
Good luck with money, and good luck with College, congrats.
-Silentone
]
I apologize that you are going through a rough time!!! Keep your head up and things will work out.
You can try to do a yard sale, or use sale sights on Facebook to get money faster, you can apply for a credit card (BE CAREFUL!) I attached a line of credit to my debit card, that way if I ever "Overdrafted" It just went to my line of credit and I was not charged an overdraft fee. Just make sure to budget your money better in the future. If you can't afford it and have extra cushion money... you don't need it.
You could also post on Facebook and try to do some jobs for people, mowing lawns, babysitting etc for a little extra cash to get you ahead!
Good luck and let me know if you have any other questions!
-Sami
]
Have patience till you get the money from your employer
]
Once you're in a situation like this, the most important advice is going to be on how to stay out of these situations, but before I get to the stuff that is currently "too little, too late" I'll help you brainstorm some quick cash ideas.
You're on a college campus, so some of the best (instant) money-makers around you are going to be studies and plasma/blood donations. I've typically gotten $10-$25/hr for studies in the psychology department (the highest paying were for MRI studies because the tight spaces freak some people out). They usually schedule you within the week and you almost always walk out with the cash or check. Look for quick gigs doing manual labor or babysitting or tutoring or start a laundry service on the hall of your dorm, none of those require special equipment or access to funds to get started. If you have any musical ability, consider busking! I've made over $100 one day singing really simple songs when I was stranded without gas or a place to stay on a long road trip, the trick is to make it look like you're having fun and then people feel good giving you money.
You've got enough to worry about, don't stress the oil change just based on the mileage, at least! Have a look for yourself at the color of the oil, and if it really needs it asap (it probably doesn't), then learn how to do it yourself, it's really not very difficult. I use synthetic oil and regularly go a thousand miles over what's recommended because the recommendations are simply overly conservative. However, I can't help but notice that a lot of your expenses are car-related. When looking at your long-term financial strategy, I hope you can see that you have way too much of your budget allocated to your car payment, insurance, gas, and maintenance costs. You'd probably be better off selling your car and getting any job on campus and relying on campus transit to get around so long as you can sell the car for enough to get out of the rest of your loan balance and have enough left over to cover some of your immediate needs. Even if the new job is a job you really like, figure out a way to get there by public transit or commute with another student. As a college student, you're a long ways off from being able to afford a car at $400+ a month (and that doesn't even include gas!). You could save up get a decent used car for the amount you're spending in 4 months. Look at the Kelly blue book value of your car to see whether you can afford to sell so you can get out from under your car expenses. You can typically sell for more privately advertising on Craigslist or in the local papers or on apps like offerup, 5miles or letgo than by selling it back to the dealer. You're going to get out of this hole very soon, there is definitely light at the end of the tunnel!
]
Hi there! I"m sorry for the delayed response. I hadn't been able to check my account for a few days! Have you thought of tutoring? You can charge about $25.00 an hour. Do someone's nails. Blow-dry their hair. Take dogs a bath. Mow some lawns. Babysit. Clean some houses. You just have to put yourself out there and let people know that you want to do these little jobs. I hope that this helps. Finding ways to make money can be difficult. If we all had the answers, we would all be a lot more well off! I hope that i provided you with a few ideas that might be helpful. Best!!! xoxo
]
Don't worry about that oil change. You'll be fine for awhile. You can apply for a credit card. College students get them easily. Call your car loan company and make arrangements. You can also ask to get lower payments for awhile. Ask if you qualify for something like a hardship payment arrangement. Next time, pawn something in person at a store. You can get the money right away and later pay to get it back. Try a go fund me account. Also talk with an advisor or financial aid at your college. They may know of resources for emergency funding. But you must be smart with your money from now on. You're doing great getting in college, having your own car and job. Don't worry so much. You'll be okay. Unless you are a couple months behind on your car payment I highly doubt they will repo it. You might also look into a cheaper car insurance. Did you buy any books for classes you dropped or don't need? You could return them or sell to someone else. I hope this helps.
]
I'm going to assume that your income after your work picks up will be enough to cover your costs - if not, you'd be looking at a whole other set of decisions.
What not to do: don't go for any of those instant loan places. They charge exorbitant interest rates (sometimes over 5000%!) and it's really hard to get out of debt once you start with them.
You could try to make a little extra money - if you live in a student area, you may be able to put that car to use by signing up with Uber or Lyft.
Really, though, I think your best option is to give the company your car loan is with a call. See if you can postpone the car payment. Explain your circumstances, and they may be able to hold off until your next paycheck comes in. A lot of companies have a process for these types of things, especially if you have a history of making your payments on time.
For your food situation, you may want to look into food banks. I know my college has a food bank for students in need.
In the end, being overdrawn isn't the end of the world. It's not ideal, but it won't hurt you in the long run as long as you work your way back up.
]
I'm actually in the same boat as you. You need to ask at your job if you can pick up more shifts or hours. That's the only way to get the car payment done. What kind of job? Can you switch to one that also gives tips? I make about $132 each week but can get up to $150 in tips. You won't make your car payments with those hours :
You need a credit card. This will help you out. Did you apply for financial aid?
Can you ask your old friends to lend you some money through Venmo? To cover your overdraft?
Is it possible that you can take some food home or hit up a dollar store for temp snacks?
Ignore the oil change because you need to focus on the car payment and getting food. You will have to be frugal until you can get savings.
You can sell things on Etsy, sell things in person at a public place and pick up odd jobs in a neighborhood. There is no quick fix.
You can also list services up on Fiverr
]
I'm a bit unsure as to how to answer since I live in the UK. Education is expensive and most take out student loans to cover the costs. Repayable later when your income exceeds a certain figure. Is there a similar service available in the US? Could you investigate? Secondly, although overdrafts and loans etc are a legal agreement, banks live with defaults every day. Arrange an interview soon as possible to discuss your situation and find a workable solution. Of course, it will ultimately cost you more than staying 'in the black' with your bank but banks are, like we said, very used to things 'going wrong' with their customers and they are human. It's not a hanging offence to be overdrawn! Hopefully you'll get some breathing space, then it's a case of prioritising. The bank will probably help you here at the interview. One short term priority decison might help. Car oil changes are specified to keep the engine in top condition in the long-term. They are not safety-related. Service intervals are specified as, say 12,000 or 20,000 miles or six-month/twelve-month. If 12,000 becomes say, 13,500 or six months becomes seven it is of no significance and won't damage the car or risk your safety. It's 'about 12,000 miles' (etc) in effect. You could delay this expense. Definitely DO NOT approach an independent lender (aka Loan Shark) under any circumstances. The interest rates are ridiculous and they'll employ any means to claim posessions if you default. Banks have a great deal more integrity, the interest rates are fairer. No loan sharks, you're buying into a world of pain. Companies rarely advance salaries to employees I'm afraid. Unlikely to find a result here. There are probably some conflicts here, due to our different nationalities but I hope something might be some help. I know UK banks are always 'kind' (as it were) to students since they are presumed to enter the job market at a higher level and likely to become good customers in the future, re. mortgage arrangements etc. So they like to keep students on-side. Best of luck.
]
Okay so the first idea that popped into my head was these online surveys you can take where they pay you to take them. They don't give much but hey at least it is something. I have taken a few of those and have gotten a $5 gift card to Starbucks and such. As for other money see if you have anything else to sell, and see if anyone in the community needs jobs like mowing grass or something like that. Maybe ask some other relatives to borrow money? Or a friend from back home or something? You can also get money from pet sitting, baby sitting, house sitting, etc. I've also heard of a friend of a friend finding things that could seem rare at thrift shops or online and then selling them for more than they bought them.. but I don't know if that always works. Just try to stay safe and not do something you'll end up regretting.
Hope this helps~
]
First off. RELAX! You aren't the first person, yet alone college student, to not be able to pay a bill on time. Call customer service from your loan provider for your car and let them know the situation. Calling them in advance or atleast two weeks after a missed payment is great. Let them know your situation, and you can ask them about delaying a payment for the moment or paying as much as you can on the due date. This would also be a great time to talk about maybe seeing if they can temporarily lower your payments while you get into the swing of your job. Same thing with insurance. There is a number that both would like you to pay, but see what the lowest minimum to pay is. Remember the people you are talking to are people just like you, so there are options. A company would rather get some money than get nothing. So negotiate! You Got This!
]
Hi I feel your anxiety and I've been there more than I'd like to admit.
I'm going to throw some ideas out at you.
Babysitting children
babysitting elderly people
Pet sitting
Cleaning houses
these are jobs that will pay you pretty much that day or of its for a few days of work you will get paid by the end of your work week.
Check classifieds or websites that advertise.
Sometimes people need help organizing etc
Another thing to think about for the future is your overall expenses.
425 dollars a month is a hefty bill for a college student
If you find that you are not pulling in what you need to make your payment , you may want to consider selling your car.
Just a thought , you know your situation better than me.
Last advice is to breathe. Every time you start panicking take some deep breathes. Things will work out. Believe that there is a solution for this and worse case if you are late with your car payment it's not the end of the world.
It's not ideal for your credit and you don't want to be an entire month behind but it is what it is.
Please dont do anything you will regret . It won't be worth it in the long run.
If things don't come up quick enough don't be afraid to talk to your parents . Explain everything to them. The worse thing they can do is say no.
People set up go fund me pages. That's another option. Maybe friends and family can help. Every little bit counts.
I wish you the best! and don't worry it will be ok! you are not the only one in these situations. It's very common.
Stay positive you are going to be fine!
Good luck !! xx
]
First thing - don't panic!
You should be able to go to your bank and talk to someone about this. If you're up front with them and tell them the difficulties you're having at the moment but that they should be short term, the bank might be able to work out a payment plan for you. If you don't tell them what's happened and you have gone into the red they're more likely to give you additional charges and this could then affect your credit rating for the future. Also call your car insurers and anyone else you owe money to and tell them the same thing. Reduced or delayed payments are far better to them than no payments at all or explanations and the subsequent chasing for the missing funds.
You can also go to your employer and tell them you didn't understand about the delayed wages, you're a bit stuck for money for food and is there any flexibility on allowing a sub. They may refuse as you're a new employee but it's worth a try.
There's not much you can do about the car situation for now, other than not drive it if possible until you can pay for the necessary work.
As for the food, if there are no food kitchens in your area where you can get a meal at the weekends, if you can only find enough for some bread or some other basic food, you should be able to get by for a few weekends.
If there is a college advisor you could also approach them, I'm sure you're not the first student to get into financial difficulties and they might be able to help.
As soon as you start getting money coming in again you'll need to do some accounts so that you know how much you have outgoing and how much incoming each week so that this does not happen again.
All this must seem overwhelming but it can be managed as long as you let the right people know and advise you.
Good luck.
]
The thing with an overdraft and paying it back is that the bank will likely deduct funds from your account the minute they go in until they get their $425.00. It's automatic. In theory if your pay cheque goes in they'll take all of it. That ends up screwing you worse.
If I were you I would make an appointment with the bank. Explain that you have left one job for another because it's close to school and that this is temporary and they have not paid you on time and you want to rectify the overdraft but don't know how. See what ideas they have if any.
Of utmost importance never tell a creditor be it the bank or someone else even if pressuring you that you'll agree to certain date or payment terms without thoroughly knowing what it all means. I was told by a lawyer once that this legally means they can bother you for 2 years to get it from you.
If the car is new and well-maintained than although recommended the 100 mile synthetic oil change can wait a little longer. It's a guide to bring it in within that window or reasonably close after. If your lease however says you must do X by whatever mileage than that's different.
The only thing you can really do is ask someone you know to loan you the money to get out of trouble but after that you'll need a consistent way to meet these fees going forward or add another or better paying job to what you do now. You could also talk to the dealership and see if there's a way to rearrange the payments.
Your college studies and then the car are the most important things and then the overdraft. There's the old saying they can't get blood from a stone even if you default.
They can only recover what they are owed when you can pay. The only thing that can happen is they go after the leased vehicle. That they can do.
I think what you have to do is talk to your employers about hours and your situation and then your parents about how in debt you are and what needs to be paid. It's your only option. Never declare bankruptcy if you owe $4,000 or less for you never know when you will have the money earned and you'll be screwed financially and unable to have credit for at least 7 years.
]
The bank will charge you for your overage. Most banks will give you 30 days to pay it back to them. I would call the bank and let them know what happened. They will work with you, it will just cost you a fine. They can tell you what that fine will be.
The oil change will have to wait another week. You should change the oil regularly, but getting behind once isn't going to hurt it any. Just make sure it isn't low on oil. If it is add some. Oh, and a money saving idea for future, learn to change your own oil. It isn't hard at all. :)
If you live on campus they won't feed you on weekends? The weekend is here. If you don't have any friends on campus who might feed you, I don't know what you might do. Maybe one of our students can help with some ideas on that.
Best of luck :)
]
Call the insurance company and negotiate. Call the bank and beg for leniency on the overdraft fees. Pay the oil change first, so you don't kill your car. You can get the $60 by collecting returnable cans and bottles, especially if you can find out which students are the biggest boozers. Call social services and see your guidance councilor for further advice. Everybody complains they can't get good help, myself included. Scour Craig's list. After the oil change, join Uber. Post fliers for help moving. Any one else have some ideas?
]
I honestly have no idea of how to help. I'm only 15 and I've never had a problem like this by myself. I don't know if you're religious but I'll pray for you and hope everything gets better. Just focus on your school work and everything will fall into place. Thank you for your time and I am very sorry that I could not help.
]
I know it is hard not to freak out in these situations but worrying just makes it worse. Maybe you could do some tutoring to make extra money. Most creditors will try to work with you if you call them and explain the situation. This may sound a little crazy but it is time for some positive self talk visualization. Right before you go to sleep imagine yourself debt free with extra money in your pocket. Every time you start worrying just remind yourself money is coming. Every time a negative thought arises replace it with those thoughts. It is called the Law of Attraction. You might just be surprised by what happens!
]
More Questions: |