conversation: User (NoGil): "I apologize if this is frowned upon, but I'm not sure what else to do. Reddit is generally helpful in figuring just about anything out, so I thought I'd seek some help here rather than continue to ignore my financial situation.\n\nI am a 25 year old single parent of one in the US. For the last 3-5 years, my debt has spiraled out of control, and I'm unable to pay any of it. I live in a one-bedroom apartment with my daughter, do not pay daycare (she stays with the other parent while I'm at work) and pretty much live from paycheck to paycheck. I'm completely lost as to what to do to get out of this hole at this point. I've considered seeing a credit counselor, but I believe they would just try to consolidate my debt and arrange payments I cannot make... and probably bill me for it.\n\nThe point at which my credit started getting so bad was upon leaving college. I never qualified for grants, so I just racked up 2-3 years of tuition debt. (My parents' income was apparently too high for me to qualify for the grants, though their income was not actually relevant to me.) I also managed to mess up my academic career (bad prioritizing) and ended up being placed on academic probation. During this time, I owed my school $2-3K of late residence fees. I was unable to pay that back, so a hold was placed against my account and I was never able to resume classes. (I of course want to go back, but I'm prevented from doing so because of my debt).\n\nI make less than $2000 /month. The following is a list of my debts and expenses.\n\nDEBTS\n\n* ~$25000 federal student loans. Was in default, currently on hardship deferment, but payments are scheduled to resume soon and I can't pay the minimum payments.\n\n* ~$3000 debt owed from student housing, probably currently charged off and with a collection agency.\n\n* ~$3000 private debt from car repairs I had to finance. Charged off.\n\n* ~$300 private loan from another sticky situation. Charged off. (Recently they offered a settlement for around $100.)\n\n* ~$1800 credit card debt, appears to have been transferred to a collection agency. Probably charged off.\n\nEXPENSES:\n\n* $700 rent /month\n\n* $125 utilities /month (electric, water, and internet lumped together)\n\n* ~$200 /month spent on food\n\n* $375 / month car payment (the car is in my parents' name, for obvious reasons. I pay it to them.)\n\n* $50-100 /month spent on myself. Seems reasonable to me.\n\nPlus whatever unexpected thing comes up each month.\n\nAfter all my monthly expenses are accounted for, there's nothing left to try to handle my debt. I really want to rehabilitate this mess, but I have no idea what I can do. I would like to go back to school (I would now qualify for grants since I'm no longer a dependent) and secure a better career, but I'm locked out by debt.\n\nIf anyone has any advice, confirmation of my hopelessness, or outright derision, any would be appreciated.\n\n"
  Self: "Dude. Your car payment is way too much. Your car payment should be $0. Sell the car and get a $1000 beater. If you owe more on the car than what it's worth, work extra or sell some stuff to come up with the difference. I speak from experience as someone who drives a $1000 beater because I'm getting out of debt. "
  