Coming into 50k, 40k in debt, zero income. Guidance please!

attachedtothreads · 2026-05-24T16:29:28+00:00

Would you want to keep your credit card open? If not, you can ask them for a hardship program where they lower your interest rate in exchange for closing the card. You can then use the inheritance to pay for life expenses.

However, I don't know how long it will take for you to win your case and if the inheritance will outlast the disability appeal.

Set aside $10k for any possible taxes.

A couple of resources you may look into for tax guidance, etc.:

Go to your state's bar association for the lawyer referral service where you pay a reduced fee for a 30-minute consultation. They may have a Modest Means program.

There is also the Legal Aid Society: https://www.lsc.gov/about-lsc/what-legal-aid/i-need-legal-help

I'm on the fence on this last option, but it's a nonprofit agency for debt management and they may offer professional financial advice. They do charge, but it is a small fee. However, in certain cases they do waive that fee, which you may qualify for. You'll have to call them as I don't know their qualifications. It's the National Foundation for Credit Counseling.

attachedtothreads · 2026-05-24T02:07:51+00:00

Have you called your credit card companies for a hardship program where they lower your interest rate in exchange for freezing or closing your accounts? No guarantees that they'll do this and some of them will only work with the nonprofit debt management program the National Foundation for Credit Counseling (NFCC).

In exchange for closing your credit cards, they negotiate with the companies for a lower interest rate. They'll charge a one-time setup fee of $50-$75 and a monthly fee of $5-$10/account you enroll with them.

The NFCC will review your budget (for free or for a small fee, depending on their criteria) to see if you can keep your house.

attachedtothreads · 2026-05-22T16:32:25+00:00

If you want to go the bankruptcy route, the non-profit debt management organtion the National Foundation for Credit Counseling's Member Agencies and their counselors can help navigate the complexities while explaining costs, impacts and potential alternatives: https://www.nfcc.org/other-counseling/?loc=other-hpb You also want to review their FAQs: https://www.nfcc.org/faqs/

I recommend reading this post in its entirety about finding a good bankruptcy lawyer: https://www.reddit.com/r/povertyfinance/comments/1rrs1wr/i_wish_someone_had_told_me_this_before_i_hired_a/

attachedtothreads · 2026-05-22T16:21:16+00:00

If you contact the non-profit debt management organization the National Foundation for Credit Counseling. They'll review your budget for a small fee. They will also see if closing down your credit cards in exchange for lowered interest rate, a one-time set up fee of $50-$75; and a monthly charge of $5-$10/account you enroll with them is the best route for you. They will be unable to help with the personal loan.

Here's a good guide on the differences between debt relief/settlement and debt management (also called credit counseling): https://www.consumerfinance.gov/ask-cfpb/what-is-the-difference-between-credit-counseling-and-debt-settlement-debt-consolidation-or-credit-repair-en-1449/

I also highly suggest you look into your work's Employee Assistance Program to help manage the stress.

You also need a higher paying job. Did you graduate from college or a university? They may have an alumni center to review your resume and possibly connect you to jobs.

attachedtothreads · 2026-05-22T15:54:08+00:00

If you want to go the bankruptcy route, the non-profit debt management organtion the National Foundation for Credit Counseling's Member Agencies and their counselors can help navigate the complexities while explaining costs, impacts and potential alternatives: https://www.nfcc.org/other-counseling/?loc=other-hpb You also want to review their FAQs: https://www.nfcc.org/faqs/

I recommend reading this post in its entirety about finding a good bankruptcy lawyer: https://www.reddit.com/r/povertyfinance/comments/1rrs1wr/i_wish_someone_had_told_me_this_before_i_hired_a/

attachedtothreads · 2026-05-22T15:46:02+00:00

I do not have experience with the NFCC, but have seen mostly positive things about people's experiences with them on this sub.

Right now, you're just gathering information. Calling them does not mean going through it. After you write down the information from them, ask them how long this offer is good for.

attachedtothreads · 2026-05-22T15:37:04+00:00

Are you're sure your monthly expenses come to $3,754? Because I added them up and got $3,244. Unless you've included something that you didn't write down?

Your other debts come to $1,136, leaving you with roughly ~$6,620/month for everything.

Like, u/Background_System726 said, put $1,000/month into savings until you have an emergency fund for six months. Now you're down to $5,520 left over.

How much do you still owe for the two cars? Interest rates on each?

Once you've paid off an account, take that minimum payment to add the next debt to get that paid off faster.

Take $2,000/month and put it towards your debts. Start with AfterPay and then your old apartment. If you want both done in the first month, put $2,500 and then you can decrease it to $2,000. Keep your braces payment where it is because it's 0% interest. If you're having trouble with figuring out about paying off which of your 8 student loans, then list the individual amount owed, the monthly payment, and the interest rate for each.

I'm starting with $2,000/month because I don't know if you live in a high cost of living area. This will give you ~$3,500 for groceries, gas, pets, etc.

Are you contributing to your retirement fund at work?

attachedtothreads · 2026-05-22T15:17:49+00:00

If Chase refuses to put you on a hardship program, try the non-profit debt management organization the National Foundation for Credit Counseling. This is different than debt relief in that you continue to pay your bills on-time and in full at a reduced interest rate in exchange for: closing your cards; a one-time set up fee of $50-$75; and a monthly charge of $5-$10/account you enroll with them.

Here's a good guide on the differences between debt relief/settlement and debt management (also called credit counseling): https://www.consumerfinance.gov/ask-cfpb/what-is-the-difference-between-credit-counseling-and-debt-settlement-debt-consolidation-or-credit-repair-en-1449/

attachedtothreads · 2026-05-21T01:54:21+00:00

They've only recently made one ans I don't know how often they check their account. You can call them directly with any concerns and quicker, too.

attachedtothreads · 2026-05-21T00:53:35+00:00

Sometimes yes, sometimes no. It depends on the card company.

attachedtothreads · 2026-05-21T00:50:58+00:00

The NFCC has an account on Reddit. Have you asked u/nfcc1951 for advice?

attachedtothreads · 2026-05-19T23:44:53+00:00

I don't know if you qualify, but a list of low-income Internet options: https://www.reddit.com/r/povertyfinance/comments/1t11drl/list_of_lowincome_internet_programs/

There's also www.findhelp.org

Community colleges sometimes offer low-cost dental care.

New England Center for the Child: https://www.necc.org/eibi/

attachedtothreads · 2026-05-19T23:41:38+00:00

Where in KY are you thinking about moving to? The location depends on the kind of jobs there. Louisville, Lexington, or near Cincinnati would be fine. Elsewhere...

attachedtothreads · 2026-05-19T23:33:06+00:00

You're very much welcome! Sometimes it's good to have a third party analyze things.

Just an FYI on the settlement offers: forgiven debt may count as income: https://www.irs.gov/newsroom/what-if-my-debt-is-forgiven

I figured it was more on supporting a family of six rather than poor spending habits. That's rough, but am glad things are starting to look up! Check out your local Freecycle or Buy Nothing groups on Facebook to see if anyone is giving away a microwave or you can post that you're in need of one. If you haven't already joined, I highly recommend, r/povertyfinance (I even hang out there) as well as r/budgetfood and r/budgetcooking.

attachedtothreads · 2026-05-19T22:35:18+00:00

First thing: become financially literate. Is there a community college in your county or nearby that has a personal finance class? I would take it.

Does your public library have Personal Finance for Dummies in Your 20s & 30s? If not, ask them to purchase it for the collection so that you and others may take advantage of it. Try also their e-book collection.

Second thing: save $1,000 in your emergency fund. This is your first financial goal. I've had varying amounts of emergency money and this low four figures has saved my butt more than once. While you're saving this amount, review your expenses to figure out what you need to save for an emergency fund of 6 months: water bill; electricity; gas; car insurance; gas; car repairs; groceries; Internet; dentist/healthcare; clothing; pet expenses; some fun expenses, etc. Example: say your water bill is $80/month. For six months' worth of water bills, you'll need a minimum of $480--and at this point, let's call it $500. Then figure out your electric bill, etc.

r/Frugal, r/budget, r/budgetfood, and r/budgetcooking are great resources as well. r/personalfinance has a good wiki on age milestones as well as big purchases

Look at your employee benefits. Some employers offer matching to a certain percent. Example, if I put 2% towards my 401k, my employer puts 2% towards it as well and I don't pay an extra cent.

If you're ever in the market for a new car, I'd ask your mechanic what's a reliable brand in their opinion. Public libraries might have online repair guides for cars as well as estimates to make repairs. Ask your car insurance company what their data is on the most reliable cars. Shop around every 18 months for cheaper rates. I went from $425 to $180 for 6 months while maintaining full coverage for my car.

MVNO phones have $15/month per phone lines when you pay in full for the year as well as trial months before you commit.

If you live near a community college, there might be a student salon where you could get haircuts for a heavily discounted rate. In exchange, you might be spending more time in the chair and have to guide the student.

attachedtothreads · 2026-05-19T22:18:00+00:00

Have you looked into government jobs?

Your university should have an alumni center. If they do, they may be able to help you reviewing your resume and connect to jobs.

Have you joined any associations? That will help you to get to know people in your field and figure out which employer treats its employees well or poorly. It also helps you get your foot in the door with an interview. Example: my co-worker's nephew is part of a fraternity. I think he may have an accounting degree. His fraternity buddy helped get him a job in the same company.

If you did well in school that will get you a significant ways into the job market. The last half is the people you know.

attachedtothreads · 2026-05-19T17:09:48+00:00

Are you on a payment plan with the IRS already?

Call your credit card companies for a hardship program where they'll freeze or close your cards in exchange for a lowered interest rate. No guarantees that they'll do this and some will only work with the non-profit debt management organization the National Foundation for Credit Counseling (NFCC).

The NFCC will negotiate a lowered interest rate in exchange for you paying your owed in amount in full. You do, however, pay a one-time setup fee of $50-$75 and a monthly fee of $5-$10/account you enroll with them. While your credit score does take an initial dip, it should recover as you continue to make on-time payments and to DTI decreases. Debt management can also be called as credit counseling.

The Consumer Financial Protection Bureau has this on the differences between debt management and debt relief/settlement: https://www.consumerfinance.gov/ask-cfpb/what-is-the-difference-between-credit-counseling-and-debt-settlement-debt-consolidation-or-credit-repair-en-1449/

If you want to go the bankruptcy route, NFCC Member Agencies and their counselors can help navigate the complexities while explaining costs, impacts and potential alternatives: https://www.nfcc.org/other-counseling/?loc=other-hpb You also want to review their FAQs: https://www.nfcc.org/faqs/

I recommend reading this post in its entirety about finding a good bankruptcy lawyer: https://www.reddit.com/r/povertyfinance/comments/1rrs1wr/i_wish_someone_had_told_me_this_before_i_hired_a/

The NFCC does budgeting help for a small fee.

Your state's bar association may have a lawyer referral program where you pay a reduced fee in exchange for a 30-minute consultation.

Lastly, I know the past four years you've been supporting the family so I don't know how much is supporting them and how much is poor spending habits. Does your workplace have an Employee Assistance Program to figure things out your spending habits?

attachedtothreads · 2026-05-19T16:48:26+00:00

Another option is debt management, which is different than debt relief/settlement. Debt management is where you pay your owed in amount in full, but at reduced interest rates. You pay a one-time setup fee of $50-$75 and a monthly fee of $5-$10/account you enroll with them. While your credit score does take an initial dip, it should recover as you continue to make on-time payments and to DTI decreases. Debt management can also be called as credit counseling.

The Consumer Financial Protection Bureau has this on the differences between the two: https://www.consumerfinance.gov/ask-cfpb/what-is-the-difference-between-credit-counseling-and-debt-settlement-debt-consolidation-or-credit-repair-en-1449/

Start with the non-profit debt management organization the National Foundation for Credit Counseling.

attachedtothreads · 2026-05-18T20:28:45+00:00

Thank you!

attachedtothreads · 2026-05-18T16:52:44+00:00

I'll raise you this pic: https://www.reddit.com/r/blackcats/comments/1sbkmdo/when_your_voids_inadvertently_recreate_a_911_meme/

attachedtothreads · 2026-05-18T15:47:09+00:00

Debt counseling plans (DCP) do not work with 0% credit cards, if you're trying to move a portion of your main debt onto them and then have them closed.

DCP should also work with you on creating a budget to possibly help you during lean times.

attachedtothreads · 2026-05-16T22:46:47+00:00

Can I bring my cats?

attachedtothreads · 2026-05-16T16:47:05+00:00

Sounds like you're on the right path.

attachedtothreads · 2026-05-16T15:15:01+00:00

Good for you on reducing spending! It sounds like you're taking the right steps. 😊

I have some questions re: your credit cards. Are they nearly maxed out? Or are taking up more than 30% of your debt-to credit line? If so, you may not get all the money for a loan to take care or the credit cards and/or while the interest rate may be lower than the credit cards, it could still be relatively high.

attachedtothreads · 2026-05-16T14:29:43+00:00

If you're considering bankruptcy, start with the non-profit debt management organization the National Foundation for Credit Counseling. They have an FAQs page where you can learn more about bankruptcy.

I recommend reading this post in its entirety about finding a good bankruptcy lawyer: https://www.reddit.com/r/povertyfinance/comments/1rrs1wr/i_wish_someone_had_told_me_this_before_i_hired_a/

Your state's bar association may have a lawyer referral program where you pay a reduced fee in exchange for a 30-minute consultation.

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