Submitted by mintjuulpodluvr2000 t3_11ej7zr in personalfinance
Hi, I’m apologizing in advance if this turns into a small tangent. I’m 22 yrs old, just graduated college and currently making $20 an hr living in NYC. I have 3 roommates and my rent is only $825. I should be getting a permanent job offer soon making anywhere from $57k-$60k. I only have one credit card, with a limit of $500 that I cannot get increased, and about $15k in student loans that are currently frozen due to Bidens student loan forgiveness plan. I know that my CC will increase if I stay within my 30% utilization of my limit but that is so hard when my limit is so low. Unfortunately, both of my parents have died( mom when I was 17, dad when I was 20) and I only have one remaining family member. After my parents died, my grandmother became my provider and helped me with everything and what not. She even helped me get my first car, and put me as a co-signer so I could begin accumulating credit. This was great, but now it’s fucked me in the ass. Unfortunately, my grandma died in March of 2021 ( I was 20yrs old, still in school) meaning the payments being made towards my car stopped and I was not aware. Even worst, about 1 month before my grandmother died I got into a terrible car wreck and totaled my car. Basically,the payments for the car went unpaid for so long that the account got sent to collections, and since I was the next person responsible for paying ( was not aware ) it left me with a delinquent mark on my credit report. I understand that I should’ve been aware that I was responsible for the payments , however I was in zero shape or form to begin that whole process while dealing with an immense amount of grief , while also working on finishing my degree. My credit is now around 560 and I am so stressed and freaked out I don’t know what to do. I now understand that credit is so crucial , and am trying so hard not to beat myself up for letting it get to this point but that’s easier said than done. I couldn’t even get approved for the apartment I’m currently living in due to this and that is terrifying for my future. Basically I just need advice and guidance. Anything is helpful, and I’ll leave the amnt of debt I have down below. Thanks for listening :)
Car debt - $3,591 CC debt (1 card ) -$400 ( actively working on using more and paying off fully )
Singer2024 t1_jaeeczf wrote
The only thing that fixes this is paying the debt and time.
It's not that much debt, certainly not enough for the stress you describe.