Can't get a personal loan to help me out. Advice?

Submitted by throwaway63637228 t3_zy9p94 in personalfinance

I've been struggling financially for a couple months and hit a point where I have almost no money left to even pay my bills. I thought about taking out a personal loan for just a few thousand (like $5k) to hold me over for a couple months until I can get a better paying job. I have good credit, like 745, full time employed (just doesn't pay enough obviously), very little debt aside from mortgage and car payment and 1 CC. But I have been rejected by 5 local banks trying to get a personal loan. I've already made major cutbacks to as much as I can, I haven't even bought groceries in over a month and living on peanut butter and bread trying to save every penny I got. I've been selling as much of my belongings as I can to stay afloat too. I'm in the process of trying to find a realtor to sell my house now if I can't keep it going. Just trying to avoid ending up homeless in a few months.

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clearwaterrev t1_j24jg4u wrote

Are you not working full-time? A part-time job to increase your income makes more sense than a personal loan or selling your house. You might also consider renting out a room in your house to a tenant to increase your income.

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killmetruck t1_j24jjve wrote

You have been rejected for the loan because you don’t make enough money to pay for your expenses plus the loan. The best idea is probably to publish your budget here to see where you could cut expenses and getting a second job.

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throwaway63637228 OP t1_j24munr wrote

Only expenses I have currently are basic utilities, mortgage, insurance, and car payment. Already cut the rest out.

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killmetruck t1_j24mz18 wrote

Could you move further out, get a roommate, or move in with family?

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throwaway63637228 OP t1_j24njcn wrote

I've looked into trying to get a roommate, problem I've run into so far is no one else wants to actually pay rent. They all want to live rent free. Ridiculous.

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wickedkittylitter t1_j24k9v3 wrote

In your situation, there's nothing wrong with going to a food bank so that you're eating more than PB sandwiches.

Have you sat down and looked at where your money has gone over the last few months? You need to do that before you can fix the problem. Don't lump things together. List all your utilities separately. List all your monthly subscriptions separately. Separate out food and restaurants.

And yes, it sounds like you need a higher paying job. Hopefully, finding one will be easier after the first of the year when budgets reset and the holiday chaos is over. You might also consider a second job for the evenings and/or weekends as a short term partial solution to your cash flow issue. You have a house. Renting out a room or two would also be a huge help.

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Groundbreaking-Box20 t1_j24ktld wrote

It seems like you explained exactly why you’re getting denied. You don’t make enough money to afford your monthly debt obligations. So why would you be able to afford your obligations + the monthly payments in this $5K personal loan?

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souvidesuperfan t1_j24kke0 wrote

A loan is a new obligation, not a source of income. If you can't pay your existing bills adding a new bill is not the solution to that problem.

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throwaway63637228 OP t1_j24n20z wrote

I just need something to stay afloat long enough until I can get a better job. A temporary fix.

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souvidesuperfan t1_j24nztt wrote

And what happens when the new job doesn't materialize as fast as you want it to?

This line of thinking spirals out of control very quickly and leads to multiple payday and personal loans. Your situation will be much worse in 6 months if you address it this way.

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Bad_DNA t1_j26gkxq wrote

Roommates. Share the house for rent

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weiner_forest t1_j24jv0u wrote

If you're full-time employed, your very first step is finding a way to make your lifestyle fit your (presumably above-minimum wage) salary.

That means making a budget, step 1.

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throwaway63637228 OP t1_j24nadc wrote

I don't have a lifestyle, I work and come home, that's about it. Don't go out to eat or drink, nothing.

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weiner_forest t1_j24ufcz wrote

When "lifestyle" is used in a personal finance context, it's not referring to your social life.

It refers to what it costs to maintain your life: your rent/mortgage, your car payments, what insurance you have, what you spend on bills, groceries/households, daily costs like parking or gas, dependents like kids, etc. etc. etc.

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joeyd4538 t1_j273gpo wrote

Work on weekends and a night or 2 during the week.....all a loan does is get you deeper into debt. This will also curb any kind of spending your doing, so it's double bubble.

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Bongo2687 t1_j25wmzy wrote

Get a pastime job that’s after your regular job

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whreismylotus t1_j24lcgd wrote

sell you car and use that money to pay the bills.

you save :

car payment

insurance

maintenance

and get some additional money. to clear with your debt.

finally when you have better paying job you can save something and then start looking for another vehicle.

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throwaway63637228 OP t1_j24mk85 wrote

Can't exactly do that one otherwise I'd have no way to get to a job. I live in a rural area, we don't have public transportation here.

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Financial_Pianist209 t1_j24k527 wrote

Look for 0% apr cash advance credit cards. You can likely get a few grand for a year or 18 months.

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