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credit... bad... credit
ok so a week ago my parents called and said they need me to find them a place and "prepare it a little" my dad use to never say no all we had to do is ask for the money and since we always felt bad and considered whether we needed it or not that much we kind of grew responsible about finances not to mention sensitive when asking him. now my dad uses that as weapon. and if i do ask i go through a horrible guilt trip....
so anyway as expected i wasted all my allowence AND went SOOOO overboard with my credit card that now i am 3000 dollars in debt and i need to pay it off. i have no source of income but him and he wont let me work (long story) and i can't ask him coz he'll say i wasted money on unnecessary things... how do i budget this? minimum payment is 60 bux. and in total i get 1500 a month for food expenses clothe gas books supplies leisure and the rest of my college needs... what do i do? with them living so close by i don't know how to budget my way out of this with out feeling choked. i have a 200 obligation for my gym monthly and 40 hair treatment... how to i manage the rest of this? please help?
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Maybe give some free advice about: Personal Finance?
Start cancelling bills if you can. No more hair treatments or gym membership.
You're at college. You can find a part time job without telling him. Unless you live at home or something.
Oh, and pay more than the minimum payment. That will barely cover your interest every month, the money will just sit there while the company makes money off of you.
Also, consider telling your father. A debt like that does not need to just sit there. Either get a job or consider talking to him, or else start cutting everything that isnt an absolute neccesity (basically everything but phone, food, maybe gas, and school supplies) and pay this off as fast as humanly possible.
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You don't need a gym membership first of all. Find a way to get out of that contract. Cancel cable, cell phone service and get your home phone switched to the lowest rate. You don't need bells and whistles.
Next sit down and figure out the total cost for groceries, books, essential supplies and put that amount of your $1,500.00 cheque aside each month to keep yourself afloat. Try using the bus more so you don't have to pay a lot for gas.
When it comes to credit cards always pay ABOVE the minimum payment as that builds a favorable credit score in the end. You're $3,000 in debt which isn't all that much. The interest will rise (naturally) but all the bank can do is call and harass you or write threatening letters.
This is too low an amount to declare personal bankruptcy over. You need a JOB and can pay in back in months. Stop expecting your dad will bail you out if you need money. Where would you be without him? You must become 100% self sufficient and learn financial responsibility.
If you can't afford something don't buy it. I would cut up all your credit cards so you can't use them and cancel any that you have memorized the number on until the debt is repaid. Go out and find a part-time job.
I'm not buying this "my dad won't allow me" line. What's he going to do physically restrain you if you did? Not likely. You're an adult now and in college it's time to grow up. Getting a job is the only way you can get yourself out of the hole you are in.
It actually costs in most places $1,000-2,000 or so to get a lawyer to make you officially bankrupt. With a job and continually paying slightly above your minimum payment you can pay this off sooner than you think.
The bank is out to collect the total balance all the time and will harass you to death to pay up in full. They may even try to sucker you into a settlement on their terms or convince you to borrow money (don't fall for it).
The bank wants this settled as much as you do and when you have enough money offer them something on your terms done through a lawyer. Never give a creditor on the phone any info about who you live with, your car, family etc.
Tell your father about your debt but do not accept his cash or you'll learn nothing and will repeat this same problem. You should however sit down with him and learn how to mathematically calculate what you need to survive without going over.
As far as hair goes $40.00 is a bit much. Trust me, there are barbers and hair places that do a great job for half that and nobody would know if you got your hair done at Cheapo Hair Studio or some well-known place.
You father can teach you how to take $1,500 and apply it to food, clothes, books etc. Once you learn how to budget from him you'll be fine.
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