Should I file for bankruptcy if I'm drowning in debt on 75k a year?

CasualAndolicious

I need some financial advice, fellas. I’m on the fence about filing BANKRUPTCY, but I really don’t want to. Long story short, I went from making $100K a year to making around $75K. It’s not cutting it. I’m living paycheck to paycheck. I hate it. It’s driving me insane; I’m mentally tapped. I’ve sold my toys, yet I still have a hefty vehicle payment that I’m upside‑down on and can’t sell. Credit is tanked. I’m so pissed at myself.

I need some advice.

BlueRiv3r

Not enough info here to help.

Take home

Bills

Total debt on each line

Interest rates

TerryTheTank

You're not alone this system works fine, it's just the way we see it that's messed up. It's time EVERYONE quits. People are just too scared, dumbed down, turned into sheeple, herded by a corporatocracy that wears a democracy mask. We're slaves to a corporatocracy, but most of us are too proud to see it. Sad fact is, if we don't unite and change it, we'll end up own nothing and be happy about it like the WEF says. More jobs mean more taxes, but the same old rut. Trading time for money is a rip‑off. Most of us value a dollar more than the dollar actually has value. Until we start valuing our own time, unite, and make a mental shift to end the corporatocracy, we'll keep chasing dollars to pay for the time we get ripped off for in this needlessly capitalistic society where time is the real currency on this planet. We need to realize there's more than just capitalism, socialism, and communism. We should open our minds to a humanistic form of government. But it's gonna take a unified, nationwide stand.

What you're going through is an engineered experience, perpetrated on society through deliberately planned obsolescence, predatory fiscal planning, and marketing that makes profit at consumers' expense. We're aall being played. The only answer is to stop playing along. All of us. Wise up. Stand up. End the corporatocracy.

bluepribbs8

Burn the truck and just buy something outright. Or keep hunting for higher‑paying gigs and do some side hustles until then. I’m also sick of that crappy car payment.

Xamnu21Ftsorc

Hey man I just pulled myself out of the debt trap I’d built when I was 18, and I’m feeling the weight lift off my shoulders.

7 baby steps to financial freedom look it up.

It’ll change your way of thinking.

I sold the truck and paid off whatever I could on the note.
I got a used car cash, on the cheaper side.
I’m slowly saving up $1 k as an emergency fund; it’s not a race.
I’m snowballing my credit cards to pay them off (if any debt).
CUT ANY AND ALL EXTRA expenditures.
Budget, budget, budget count every dollar?going in and out.

I’ve been budgeting my family on a 50/30/20 split:

50% of net income to bills and mortgage.
30% for fun stuff.
20% goes to mutual funds in my Roth.

I dug myself out of $55 k in debt doing this… granted, it took time, but I’m finally seeing the light at the end of the tunnel.

#1 thing… STAY POSITIVE.

Our minds play tricks on us… I have to stay focused.

You got this, bro. Hang in there you’ll be above water before you know it!!!

monorailcurrentdog

You gave little bill info, so it’s hard to pinpoint fixes. Treat this as a learning experience, no matter what you try. I think you spent what you earned and financed several items, even a pricey car you probably shouldn’t have.

When you get through this and you will live below your means! Aim for 80‑90 % of your income and save the rest.

ViktorRise

If you've got credit cards, bc credit counseling can help. They’ll close your cards, negotiate down your payments, and can help you dig out. The one important thing they do is freeze your cards and kick you out if you get new credit, so that keeps you from digging the hole again.

From there it’s just a math problem tbh. If too much money is going out, either less has to go out or more has to come in.

Credit counseling helped me get out from about $40K andd being on the other side is awesome.

MitchLanar1989

Read the book The Barefoot Investor lots of great advice in there

GabeNerd182

I realize this probably won’t change anything for you right now, but looking ahead I’ve made it a point to keep my debt as low as possible. I don’t have any credit cards, my car is paid off, and the only debts I’m still carrying are my mortgage and my student loans. Not having credit cards has genuinely helped me keep my head above water without them I’m not tempted to spend more than I have. I’d also try to avoid filing for bankruptcy if there’s any way, veen though I’m sorry if this feels like little help.

NerfKickFlip87

Feel free to hit me up! I've been advising for nearly 17 years now. I can share some insights with you.

TropiExplorer

Get a 2nd job until job 1 can be replaced with higher income.

KingCrankCow

Cut every expense you can, and snowball method.

MaxStormGuide

It’s hard, especially with a family. But earning a lot doesn’t guarantee you can live at or above your means. You can earn a good income and still stay below your means.

XuuxijSinntra

Drop a gap on the truck. The first player to run the red light just mashes the gas.

PanThrowCascade

Just file bankruptcy. Its not as bad as people make it seem

pantherhira91

The method. Some people don’t like the presenter, but I truly believe it’s the best resource for getting out of debt and staying out of debt.

ShovinNader

I’m makin’ do on $50k/yr, so don’t overspend cut extra costs. I even hustle a second gig, do DoorDash or Shipt for that extra cash. 💸

geektiger

I earned $60,000 a year. As my income grew, I never changed my lifestyle. When I received raises, I continued to spend as if I still earned $60,000. Now I earn three times that amount and still live as though I make $60,000 a year.

speedythehoncho

Do whatever you have to do to improve your financial situation.

But you sold your “toys.” You’re emotionally unhappy with where you are and you’re barely making ends meet. Bankruptcy was literally made for people like you. It’s been the biggest decision I’ve ever made. A lot of people will tell you not to, but it’s been a blessing a chance to start over. Good luck 🙏