Can't Pay Bills

Everybody's Uncle,

I really am in a financial bind. I am behind on everything. I have two personal loans, rent, house bills, car, insurance (health and auto), one credit card, one secured loan, Internet, and cell phone, and my bank account is overdrawn by 300 dollars. I need 3400 dollars to catch my bills up. I only make 8.50 an hour and I am starting a second job next week making 8.00 an hour. I am also going to waitress a little on the weekends. This will catch me up, but I cannot hold these people off anymore. No one in my family has it. What should I do? I am trying to avoid bankruptcy, but I do not know what other option I have.

(Too Many Bills)

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Dear Too Many Bills,

The solution to your problem is a change of mindset. All the additional work and income will not help unless you manage your finances. Failing that, you will become slave to your recklessness.

We live in a credit and debt driven society. You are an example of the consequences of such policy. The misuse of cell phones is a killer. Inexpensive cell plans with few monthly minutes provide emergency service and modest usage; blabbing away is a budget breaker. Credit cards are excellent tools when used prudently, but devastating as easy money. Hide the credit card, hang up the cell phone, stop wasting money.

Bankruptcy can cost hundreds of dollars, dollars that would be far better spent on debt reduction. Bankruptcy will not pay rent, house bills, car insurance or day to day expenses - not advised based on the information provided.

You say, "No one in my family has it." The honest question is who in their right mind would advance money to anyone with your track record? Wake up, niece! This is a sink or swim world: start swimming.

Resolve overdrawn situation at bank IMMEDIATELY. Bad checks can lead to legal problems.

Options:
Maximize income
Start a NECESSITY ONLY existence
NO luxuries until all responsibilities are up to date
Contact your credit card company and ask for an easier payment arrangement
(If you have not maxed out your credit card, [I'm gagging] use in desperation only.)

Talk to your landlord, but put a high priority on rent
Explain your situation to those who gave you personal loans
Scroll down this column for similar inquires and responses.

Sorry I have to be tough with you.
Get back to me and I will walk you through step by step.

Tough love,
Everybody's Uncle