A Reader’s Question – How do I come out of this personal financial rut that’s causing a rut in my entire life?

‘Brine Ansil’ asks a great question so I thought I’d post it here with an answer – enjoy:

I am 27-years-old and I graduated from college last year. It feels as though my personal finances have been going down hill drastically over the course of the last couple of months. At the beginning of the year I had good credit and now my credit has went downhill drastically. I work at a state funded daycare and my pay is fair. However, in the summer we get laid off and are eligible for unemployment. Unemployment is barely enough to live on much less enough to pay off debt. I have never touched a credit card until this year. I applied for two store credit cards. I paid my bills off quickly. Then, I hit a halt when I paid the one online and for whatever reason it didn’t go through my bank. I had plenty of funds. They didn’t let me know for two months that it hadn’t went through. It affected my credit and they shut down my credit card. I had even made a payment between the time that the issue happened and the time they sent me a letter to shut down my account. I had applied for a general credit card and received it in the mail. However, I have yet to open the envelope. I don’t know if I should. So, on top of all that I had cancer two years ago and still have $2000 in doctor bills even though I had insurance. I have nearly $30000 in school loans in which I have on a deferment but would really like to pay off. I will need a new car soon as mine isnt in the best of condition. Finally, I would really love to move out of my parents’ home one day. I have been looking for a new job and I have been looking for a way to make extra money online or by selling stuff or crafting or anything! Any help with any of my many issues would be greatly appreciated.

Answer: Take a budgeting class. Seriously.You live at home. Do your parents charge you rent? If no, thank them profusely. Even if they do charge you rent, it’s bound to be less than a rental.”My pay is fair.” Not if you knew you’d be laid off and collecting unemployment and you forgot to budget for it.”for whatever reason it didn’t go through me bank” yeah, yeah, and that doesn’t explain why you didn’t notice that the payment never cleared. Do you ever balance your account? I do and I would have noticed within a week that there was a problem.”I applied for two store credit cards.” Why? If it’s because you applied for an didn’t get a visa car, fine, but applying frequently for cards also dings your credit.”extra money online or by selling stuff or crafting” Doesn’t work. Keep pounding the pavement.

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