I'm $200,000 In Debt and Unemployed

brought to you by the every dollar app start budgeting for free today I am terrified to be honest I'm expecting my first child soon and I am thank you I am in a very big hole I'm considering pal and bankruptcy because that's kind of what's been recommended to me about a couple friends but I'm just more so looking for guidance because I don't really know where to start or what to do or if that's even the best option for my situation yeah well tell us more how much better you win a little over 200,000 oh wow and what kind of is that so it's kind of a mix about 25,000 other strictly credit cards 14,000 is from student loans and then the remainder is pretty much delinquent like previous bills that I am behind on or kind of got charged off or auto loans I had auto loans okay so I had a car rental business that started last year but it's pretty much a failed business at this point because I'm not really making in revenue and I've considered and tried multiple times selling the vehicles and you know trying to trade them in how many no one is five different ones can you tell can you go through and tell us the story on each of them like what you owe on it and what it's worth yes so there's five different ones I can put up if you give me one second sure so what were you doing like two row or something yes okay and so my guess is you pulled down on all of these vehicles with the intent to rent them and they're right you ran up the miles on them so probably they'd appreciate it very quickly but you just weren't making the spread that you would is that what right one of the vehicles actually started out as a personal vehicle but then I eventually of course used it for the business out of things like I was not from my previous job got it okay okay so that makes sense because before we said hey 25,000 credit cards 14,000 students the rest is in like other something like gosh that's like 160 thousand dollars in other okay it makes sense now that it's cars do you have that info if not we can move on to the next thing I do have all of the cars and how much is owed on each one okay as far as the value of them I kind of got information a little while back so it's not as up to date okay well as much as we can go through them and kind of give you some insight so the first car let's call it car number one what do you what do you want it the first one I owe 24,000 and what do you think it'd be worth private sale what I've tried or what I got last information on was about 20,000 okay how long ago was that information probably about three to four months ago and it's all about three to four months ago okay so 21 is 20 your four thousand dollars upside down okay not as bad as I thought what's the next one the second one is about 28,000 it's was 28,000,000,000 it was owed on it so you want me to keep going on the other one you said you owe 28,000 you get 28 from it as far as that one's worth it's probably a couple months ago around 25 okay what about car number three number three is 37,000 five okay what I was told it was worth is about maybe 33 and change and just for 30 what did you go to like a car max type place where did you get that information correct that's why I got them all previously approved okay that's good to know the good news is what I want to encourage you like before we even get through the list the good news is car max value is like the price the lowest value you would get for them if you sold these private sale you might actually break even yeah yeah so keep going let's hear number four number five real quick and then Rachel and I will give you our advice okay number four is about 40,000 that's owed on it and I that's one I really don't know what it's worth but if I'm guessing it's probably about 5,000 upside down but I'm not 100% okay okay and then the final one the final one is 42,000 two is what's old and the last time I got to the praise it was about 6,000 upside down okay okay okay so the good news is I really think for sure the first three if you sold in private sale you could probably break even or get really really close but I think if I were in your shoes and I'm not saying this is not a sexist comment by any means but I be getting with whoever I know that has a little bit more co-honest in this area and like more expertise like I'd be calling it my dad and brother be like help me sell these cars waste up yeah I just added this up that's $171,000 in cars yeah and if in worst case scenario you're probably 15,000, $16,000 upside down so this I mean I would be making I would say I'm getting these I'm getting rid of these in the next two weeks yeah I mean I would be putting them everywhere all over the internet anywhere I could I have some great cars I'm selling them get them out of my life because that frees up I mean I can imagine that car payments you're paying every month on these my I mean like that's yeah I mean I that would be my number one and so there is a lot of hope in that situation that 100% yeah the majority of all of these I mean yeah you could be have you tried to sell them and not had luck is that what's holding you back yeah there also a few of them are like extremely tight to point where you're kind of out for repossession so it's like I'm trying to get rid of them so they're back payments okay okay okay um okay so make me get that and I would take less to get them out quicker yeah so that doesn't they don't get repoted because then you have nothing to offset the debt so even if you have to take less I would I mean this is more of a desperate situation because of what you're in you know my it's kind of like you know with you know with people that are behind on their mortgage and it's like you'd rather sell it quickly than get foreclosed on I mean it's kind of the same equivalent so the hard thing though is you've got to be able to give them the title so how are you gonna close the gap from the one do you know what I'm saying if you take less how are you gonna close the gap so that you can actually sell it free and clear do you have any money anywhere saved I only have at the today probably about a thousand dollars to my name okay so what I would do then with that thousand dollars because one breaking loose on one of these is gonna help you avalanche through all of them so the one that you was the least upside down was number two the one that you owed 28,000 on that was worth 25 if you can just really quickly get 3,000 bucks saved and just focus on that one you even clearing one of these immediately is going to rock your world yep you know absolutely and so that's what I'd focus on and then after that they're gonna go like dominoes because it's gonna clear of that payment you're not gonna feel the stress of it and so focus on one at a time but there's a lot of hope you're like Rachel said yeah for sure and what you can do to make money between now and when baby comes it's gonna be as helpful as possible that's right that's right running my if you stand the line Christian's gonna pick up and we're gonna get you with the financial coach to even walk with you through some of this because there's a lot here and with a baby coming I know it's just life it's difficult so hopefully that helps thanks for the call create your free every dollar budget today the simplest way of budget for your life