Get Out of Debt Guy

I Work for the State and Go to College But Can't Afford My Debt

Posted March 14, 2013

WRAL Reader Question

Dear Steve,

I work for the state and of course we have not or will not get a raise in the near future. I am currently working a part time job and going to school. I have a lot of medical bills and about 1000 in credit card debit. My basic bills are paid but these added bills are killing my credit. At some point in the future when I finish school (which I have not taken out a loan for any of that) I would like to purchase a home, but with these bills my credit is crashing and burning fast.

Could you give me some ideas on how to deal with my finanical situation? I am single and I can not work anymore hours than I already work. I am exhausted already. I am trying to find another better paying job but that like trying to find a needle in a haystack.



Dear Michelle,

Financial problems are resolved by either increasing income, reducing expenses, or a combination of the both. There are also other solutions like intervention through approaches like bankruptcy.

In your case it appears that your State job will not be increasing your income and the debts are piling up so we need to do something to change the equation here for you.

You told me how much you have in credit card debt but not how much you have in other debt. If you could share that with me in the comments below, that would be helpful.

I can certainly appreciate how difficult and stressful it must be to work and study as hard as you have been. Expecting you to work even more is probably an unreasonable expectation at this point.

But what it you took the next semester off and worked fulltime to help clear away so of your financial obligations. Is that an unreasonable consideration? Would that give you the breathing room you need?

Your credit is actually the least important concern right now. Credit can be easily rebuilt using this guide.

The primary focus has to be on dealing with the underlying income issue at the moment and then once that is tackled and you can get back on track, I see no reason in the future why you would not be able to buy a home.

Of course your ability to buy a home is based on your credit but also your income and ability to afford the mortgage payment.

Steve Rhode

WRAL Get Out of Debt Guy

If you have a question you'd like to ask, you can do so here.


Please with your account to comment on this story. You also will need a Facebook account to comment.

Oldest First
View all

About this Blog:

Steve Rhode has had careers in opthalmology, real estate and as the head of a nonprofit debt counseling firm. On his blog, he offers hard-won, free advice about getting out of debt, consolidation and making the right choices as you manage your money.