Wish I could reach through this computer screen right now and give you a huge hug. I'm so sorry it's been so rough the last few years. I can see how hard it's been and I'm proud of you too for continuing to show up for yourself and work your way through this.
Before we go into problem solving mode tho, I want to talk about the “world is ending” part. I hear you and I don't think that's dramatic. You've been in survival mode for 5+ years now and your brain literally stops being able to imagine a future where things are okay bc it's too busy managing the immediate threat. This is not a mindset problem - this is what chronic financial stress does to a person. So I just want to say you're not broken - you're exhausted.
The goal right now is NOT to build wealth - it's to create enough margin in your bank account that your nervous system can finally exhale (even just a little bit). That's what we're working toward.
Ok. Now let's get down to business.
Your $10k credit card debt first.
Making double payments is the right instinct but I'm sure your interest rate is at 24%+ so you're constantly on the worst treadmill. Before you do anything else, call each card and ask specifically about a hardship program. To be clear, not a rate reduction - ask specifically about a hardship program.
The script: “I've been experiencing financial hardship from multiple job losses and I'd like to know what hardship options are available to me.” Most companies will temporarily drop your rate to somewhere between 0 and 9% for 6 to 12 months while you pay it down.
If that doesn't move the needle, look into the NFCC. It's a nonprofit credit counselor who can set up a debt management plan that consolidates your cards into one lower interest monthly payment. It's usually free and it's specifically designed for your situation.
Now your nonprofit job.
Do you have any federal student loans? If you do, check studentaid.gov right now for Public Service Loan Forgiveness. If you've been at a qualifying nonprofit for any stretch of time, payments you've already made may count toward forgiveness. This could be genuinely life changing and most people in your situation don't know they qualify.
Also - is there any version of what you already know how to do that translates to one freelance client? Even $500 to $1,000 a month from one person beats a third part time job in most scenarios bc you control the hours and the rate.
Last thing on the bankruptcy.
It is NOT the failure it's been made to feel like (Toni Braxton filed twice and she's currently thriving and toured at the beginning of the year)
$10K is on the lower end of what typically makes Chapter 7 worth it, but if the hardship program route doesn't work and the interest keeps drowning you, it's a real option. A lot of bankruptcy attorneys offer free consultations.
I'm proud of you for working so hard. Your next chapter is going to look so much different than this one. Report back and let me know how you're doing.
xx
Wish I could reach through this computer screen right now and give you a huge hug. I'm so sorry it's been so rough the last few years. I can see how hard it's been and I'm proud of you too for continuing to show up for yourself and work your way through this.
Before we go into problem solving mode tho, I want to talk about the “world is ending” part. I hear you and I don't think that's dramatic. You've been in survival mode for 5+ years now and your brain literally stops being able to imagine a future where things are okay bc it's too busy managing the immediate threat. This is not a mindset problem - this is what chronic financial stress does to a person. So I just want to say you're not broken - you're exhausted.
The goal right now is NOT to build wealth - it's to create enough margin in your bank account that your nervous system can finally exhale (even just a little bit). That's what we're working toward.
Ok. Now let's get down to business.
Your $10k credit card debt first.
Making double payments is the right instinct but I'm sure your interest rate is at 24%+ so you're constantly on the worst treadmill. Before you do anything else, call each card and ask specifically about a hardship program. To be clear, not a rate reduction - ask specifically about a hardship program.
The script: “I've been experiencing financial hardship from multiple job losses and I'd like to know what hardship options are available to me.” Most companies will temporarily drop your rate to somewhere between 0 and 9% for 6 to 12 months while you pay it down.
If that doesn't move the needle, look into the NFCC. It's a nonprofit credit counselor who can set up a debt management plan that consolidates your cards into one lower interest monthly payment. It's usually free and it's specifically designed for your situation.
Now your nonprofit job.
Do you have any federal student loans? If you do, check studentaid.gov right now for Public Service Loan Forgiveness. If you've been at a qualifying nonprofit for any stretch of time, payments you've already made may count toward forgiveness. This could be genuinely life changing and most people in your situation don't know they qualify.
Also - is there any version of what you already know how to do that translates to one freelance client? Even $500 to $1,000 a month from one person beats a third part time job in most scenarios bc you control the hours and the rate.
Last thing on the bankruptcy.
It is NOT the failure it's been made to feel like (Toni Braxton filed twice and she's currently thriving and toured at the beginning of the year)
$10K is on the lower end of what typically makes Chapter 7 worth it, but if the hardship program route doesn't work and the interest keeps drowning you, it's a real option. A lot of bankruptcy attorneys offer free consultations.
I'm proud of you for working so hard. Your next chapter is going to look so much different than this one. Report back and let me know how you're doing.
xx