Well, I'm 20 years old and have tuition payments, car payments, rent, electric, phone, etc. Lots of bills for my age. I live with my girlfriend of two years in a small studio apartment. We go 50% on everything dealing with the apartment (groceries, electric, rent). I have a budget, itemizing all my payments and which bi-weekly check must be used in order to pay that bill. With the rise of fuel, and the fact that I have to use Premium, I budget for $120/mo in fuel.

I'm reaching out to seek counsel about how to further go about making my debt to income ratio a little less... frightening. The degree I received from my tuition is not helping pay itself off, and I have another nine years of $259/mo payments to deal with. :( Another mistake made by a young'n. :/ My credit card is over 50% of my credit limit. I'm going to use my $600 stimulus check (receiving in July >.<) to pay off my credit card. Seems like the most useful/economic thing to do with it. Correct me if I'm wrong.

If anyone has some suggestions, please share. I am in an ever-stressful state and I've given up on going to college again, because 1) I don't want to make another mistake and end up not being able to use the education, 2) cannot afford another tuition payment for another 10 years. I need new glasses, as my vision has gotten worse, but I don't have a good visual insurance plan. I'm going to need clothes soon. My car needs an oil change.

Is there any sort of government assistance I may qualify for? Anything?

Thank you, in advance.

I don't envy you your position.

Are you still going to school? Have you finished your training, or is there more to go?

That is, are you expecting to return to training in the fall, or would you if you could afford it?

I understand from what you say that your education is not being made us of in your present employment.

Is it possible to find employment in line with your training?

How much possibility is there of finding additional employment? Do you have some extra time available, at a constant time? That is, are you working now in a situation where you are on call, so may be called in to work at varying times? That you are unable to anticipate beforehand? Where I am going with this is it possible for you to find an extra job which would require you to come at costant times?

On the other hand, do you live in a community where there are other houses nearby? Would it be possible to find work cutting lawns, doing landscaping, etc.? You could do that even if you are working in a situation where you may be called in to work at unforeseen times.

You speak of having a car that requires payments to be made ... that is hungry for Premium gas. How old, and how fancy? Did you buy a new one, or nearly new, and how upscale? You speak of needing to pay $295./mo. on the car purchase ... plus $120. fuel. For how long?

I am an old retired guy that was told by his mechanic less than 2 years ago that my 1990 Colt that I had driven for 7 yes was unsafe, so bought a 15 year old Taurus from a loyal friend who runs a body shop for $2,000., drove it for 6 mos ad a kiss from a gravel truck ended its life ... my insurance co. eventually settled for pretty well the price I'd paid. The same friend helped me locate a 19 year old Mazda 323 with about 105,000 mi. that was in good shape, $2,500., which I'd driven for 6 mos. when it appears that I ran a red light, got hit so back wheel was travelling crooked ... everone said I should scrap it, but I figured that it had a fair amount of mileage left in it, so paid over $3,000. to fix it (plus $200. tow bill). All of which I paid for in cash. I don't like that extra expense of paying someone a fee for rent on their money that they're letting me use, temporarily.

I'm wondering whether it would be wise for you to consider selling your car and finding an older model, in good shape, that you could buy for a much lower cost, so reduce the amount owing on a vehicle.

That would allow you to increase your monthly payments on the credit card(s).

How much do you owe on the card ... or do you carry several? Is it/are some of them store-issued cards? Do you know what interest rate the card co(s). is/are charging on your unpaid balance(s)? If it's a regular card, usually 15 - 18% annual rate .. but most store-issued cards charge 25 - 28%. If you have some owing on store-issued cards and could transfer the amount to a regular card, it might be useful. Would there be a transfer fee? Would the card co into which you wanted to transfer pay such a fee?

Oh, yes - are you adding to the amount owing each month, or are you able to reduce the amount owing some each month?

Have you been paying at least minimum amounts owing, and in time each month, in order to avoid late-payment an inadequate payment charges ... they are really brutal.

Have you talked to the credit card carrier(s) to tell them of your strong efforts to pay your bills and how little you have extra to live on ... and could they help out by reducing the interest rate for a while, etc.? Some have reported that they've asked their credit card company and they did reduce the amount of the costs associated with the account.

Hav you shopped at GoodWill or other purveyors of pre-owned or liquidation-style clothing? One gets good quality goods there at a very low price (which is often at a higher rate than formerly, but still at a great reduction over new goods at regular outlets).

How about yard/garage sales?

Have you changed the oil on your vehicle yourself? Do you have a friend who has mechanical skills who does quite a bit of work on his vehicles? Perhaps he'd have ramps that you could use to raise the front end of the car so that you could get under it for access to the oil drain and the filter.

Maybe such a person would have the wrenches that you need to remove the oil drain plug and the filter.

By the way, I suggest that you make a database of the names of all of the friends that you've known since you were a kid, with contact information as you know it, and go looking for contact info for the others.

Ad some notes as to the training and interests of each, the kind of work that they do, hobbies, other interests and skills, vacation destinations, etc. ... whatever situations that they might have skills available that you could ask about when you have need of it.

For example, when you want to buy a car, ask for "mechanic" and likely a search will show you about half a dozen ... of which you remembered, say, three.

Find out some ideas about how to reject certain cars that you look at as you seek to buy privately. Maybe one or two of them will be willing to check some candidates that you are considering. If they give a quick check, pay $10.00, somewhat more, $20.00, and if they give one that they like a fairly thorough check - $50.00. If that allows you to buy a quality car, and you avoid one trip to the garage, you're money ahead.

Do yu have a phone with a lot of bells and whistles? How about going more basic for a while. As for answering service ... buying your own gear is usually a lot less expensive than renting service from the phone co. ... and you can do without "Call waiting", etc. Probably without a cell phone.

Quite likely with nothing but basic cable for TV.

It's very important that you make a strong effort to reduce those bills, and the amounts owing.

Good wishes as you go about getting your head further above water.

ole joyful

Can you get a part-time job?

A couple of ideas:

Get rid of your car payment if you can. Sell the car (hopefully for enough to pay off the loan) and buy a used Honda for a few thousand dollars. Or move closer to your job so you don't need a car. Does your girlfriend have a car, too? Maybe you can get away with just one vehicle.

Forget about new clothes. Dig everything out of your closet and figure out what you really have.

Get rid of cable TV service and your telephone landline if you have a cell.

Sell some stuff and put the money into a savings account to gain some peace of mind. Do you have a guitar you never play? Any unused sports equipment? Your ipod?

Earn smarter. Is your college degree really totally useless? Try to think about creative ways to leverage it with your hobbies to beef up your resume. For example, if you have communications degree, add your expertise with computer games to the resume and package yourself as an entry-level marketing hire focusing on the animation industry. Or you could do volunteer work in the industry you like, to gain networking contacts. Find companies you want to work for, call them up and ask to speak to someone in HR about opportunities. Corporations are always looking for smart young employees who will work cheap. Does your college offer any job-placement services to alumni?

I'm a little bit concerned about your eyeglass question. You seem kind of young to be having vision deteriorating quickly. Did this happen suddenly? Do you have health insurance?

If you feel you need a better degree to get a better job, go talk to the college about financial assistance. You may be surprised. You might be able to get your first loan deferred while you're in school. There are different financial aid packages depending upon your needs. From your post, I get the impression that you got a degree that wasn't practical or you need a lot more education or experience to make it useful. Unfortunately, that happens. The schools oversell the degree or the person getting the degree isn't right for that particular degree or you don't realize that the career changes and the degree is just the piece of paper you need to get in the field. You may not really ever get to do the job you set out to do because that 'job' doesn't really exist. It's more about paper shuffling and dealing with people. If you're worried about another useless degree, I would first figure out what profession you want to be in then find a mentor or someone in that field Ask questions and get recommendations from them. There may be a college that employers avoid because they think the program is bad. Emloyers may want to see a certain amount of initiative or experience. You may be able to get your foot in the door somelace just by asking around.

You didn't mention if you have things like cable or other 'extra' bills. If you do, I'd get rid of it. That goes for any habits like smoking or regular drinking too. A pack of cigarettes is outrageous in price. You can justify a beer once in a while, but every week (or daily)gets to be too expensive.

Someone above mentioned getting a part-time job. That's a good idea also. There are perks to even some of the less glamorous jobs. For instance, I used to work summers in a grocery store. We got employee discounts that were basically equivalent to the tax. Since I was already at the store, I'd scoop up loss leaders on food and discount merchandise as it became available. I also worked in a pizza restuarant for a few months. We were charged a discounted meal whether we ate there or not. I'd often get a small pizza to take home. If I didn't eat it, my brothers did.

I'd look to see how you could cut food costs. You didn't mention eating habits. I'll throw a few things out.
*If you eat out, start cooking at home instead.
*Cook from scratch when you can.
*Look for loss leaders in the weekly advertisers on food and plans your meals from them.
*One friend used to complain about his food costs. He didn't realize that that one pound package of lunch meat to make a sandwich was costing more than a pound of ground beef or roast. The groud beef or roast went further because it was served in/with pasta or potatoes.
*Meat also goes further if it is used as a side.
*My family is bad about wasting food. One thing I try to do is cook a meal with leftovers in mind. Leftover hamburger can be used in spagetti, tacos or even put into a Rice-A-Roni dish for a meal.
*Cheap sources of protein like eggs or beans can be used in a variety of ways and can't really help to extend other more expensive foods. Leftover veggies and meats can be put into eggs for great omlets and quiches. Omlets and quiches are easy to make. If you don't have an ingredient, you can probably leave it out or substitute something else. Dried beans are cheap and healthy. You have to remember to soak them so they can be cooked. I put them in salads, tacos, burritos, soups, and chili.

Good luck with your cost cutting. I hope you find a couple of things that help.

The degree I received from my tuition is not helping pay itself off,

I don't know what your degree is, but at 20 years old, it can't have been very long since you recieved it, whether it is a BS, an AA, or a trade certification. It is incredibly unrealistic to expect instant payoff from a college or even trade degree... you still need to 1) find a job that's appropriate for you, your degree, and your aptitudes; and 2) gain some experience and seniority and work your way up the pay scale a bit. It doesn't happen instantly, it takes years. Yes, years. And yes, you have to struggle in the meantime. I don't say this to discourage you, but to encourage you... don't give up on the concept of an education because what you've done so far hasn't achieved instant financial payoffs. If the degree you got was appropriate for you but you just haven't found the job to go with it yet, stick with it, talk to the placement people at your college/trade school to see what help is available in the job search, etc. Or if the degree you got really was a mistake and you'd like to do something different, don't be discouraged from continuing with your education. It is not an instant payoff, but if it gets you into the right occupation for yourself, it's worth it.

As for your immediate needs, it's hard to judge with the limited details you've given, but the obvious answers are second job if you don't have one, and cheaper car if what you have now isn't already dirt cheap. Or no car, if it's feasible. Is public transportation available, or can you walk/bike to work/grocery store? Do you and your girlfriend both have cars, you could share one? etc.

Paying off the credit card sounds to me like a sensible thing to do with the extra money.

I'd get rid of the car and get into something less expensive. When I was your age, I too wanted to drive a really cool car, so I understand the desire to do so. You really only need a set of wheels to get you here and there. There are a lot of vehicles out there to choose from. Get yourself into something less expensive.

I think if you feel comfortable with giving us more details about your situation, we can offer more specific suggestions.

As it is, we're sort of shooting in the dark - hard to hit a target, that way.

Good wishes for being able to get those debts down, so that you can keep more of your income, to spend and save as you wish.

If, down the road, you have some stocks and mutual funds, and obtain the certificates, if you use them as collateral for a bank loan, the interest rate that they'll require will be lower, I'm pretty sure, than if the only collateral that you can offer is the vehicle.

Every little bit helps: don't disregard the value of pennies.

ole joyful

When your lease is up on your current apartment you should check into apartments where utilities are included in the rent. When money is tight, it really helps to have your expenses fixed. Maybe get a two or three bedroom place that you and your girlfriend can share with some other young professionals. And live as close to work as you can.

Eat cheap. Spaghetti and Ramen noodles.

The best things in life really are free. Enjoy your youth and your health. Have fun with your honey. Visit museums, parks, etc.

Put any extra money you have towards your student loan. Resolve to get it done with - get a second job if you can.

One day, you'll look back and be glad that you did.

BTW, DH's degree was in Teaching and the field was flooded with teachers at that time. He was cleaning offices at night when someone offered him a job at that manufacturing plant. They liked the fact that he worked and did a good job even though it wasn't his degree field! He continued working in manufacturing and took additional courses to help him.

I echo lots of advice given you above, and hope this will give you some encouragement. Good Luck!
Rhonda

Also, is your income the same as your roomie's? Suze Orman, financial expert, says that bills should be split according to income; if one makes 1000 a month and the other 500; then the 1000 a month should pay a larger portion. That may not work in your case but is something to think about.

Rhonda

Focus on the bare necessities. Cancel or don't renew magazines that you can do without. Have your girlfriend do your haircuts.

Do you have a longstanding relationship with an optometrist? If so, explain your situation to her/him; I bet they could help you out somehow. Most definitely, pay down the credit card with the highest interest rate with the $600, or use it to get an eye exam and new glasses if necessary. That is probably of paramount importance!

You MIGHT not HAVE to use premium fuel, even if your owner's manual calls for it. Usually, premium is needed to heep high-compression engines from knocking/pinging at high speed or under heavy acceleration. You might try a tank or two of regular; I know people who have done so successfully. DISCLAIMER: I am not an automotive professional. Discuss with a mechanic first! At my local prices (Massachusetts) premium is about 5% more than regular, so using regular would only save about $6 per month anyway.

Just remember - every extra cent you put toward that credit card debt is saving you on interest!

My own personal opinion, though, is that if you are a healthy, able-bodied 20-year old with a degree and without dependents, you should not be looking for government assistance at this point. I tend to feel that people who are physically and mentally capable of taking care of themselves ought to do so. Are you looking for ways to earn more money by switching to a higher-paying job, working overtime, or adding a second job? If none of these are options where you live, have you considered finding work elsewhere and then moving to a new town or state? Have you minimized your expenses by eating cheaply at home/bringing food to work, foregoing entertainments and activities that cost, and cutting down on things that add to your electric, water, and gasoline bills? Have you and your girlfriend looked into finding a cheaper place to live? There may still be a lot of things you can do to help yourself without looking to the government to step in.

Maybe there are other things going on that you didn't describe, but based on what you've said, I think you can accomplish your goal if you're determined and don't give up. And one of the great things about facing and overcoming this situation is that you'll be able to establish good habits for earning, saving, and staying out of debt. Building such good habits at 20 will really help you throughout the rest of your life.

If you decide to bike to work, you can; no little kids to try to fit onto the scooter.

Get a second job. I'm twenty years out of school and still keep my eyes open to new means of earning money. You can use that education but you may need to create your own job. Chances at a better life will come for you. Try to keep your spirits up and your eyes open so you are ready to pounce.

Wow, did Suze Orman really say that? I usually agree with her advice, but speaking as a person who usually earned WAY more than my roommates this sounds completely unfair!

Why should I have paid more than my semi-employed roommates? Did I breathe more air or use more toilet paper? I don't think so. Sheesh.

I'm thinking she may have been referring to people in committed relationships who are living together, not people who are simply roommates.

all the above was good advice in my opinion.

I DO wish, though, that posters would come back and at least ACKNOWLEDGE that so many people took the time to give advice that was asked for!

pipersville carol, I do agree with you that just because someone makes more money, that person should NOT pay a larger share in regular roommate situations.

Our remarks are being emailed to urabbit; so perhaps he will see our request that he acknowledge our advice and what he has chosen to do to help himself.