What bills do I pay first?
May 1, 2014 10:56 AM Subscribe
I have $13 to my name and a long list of financial obligations. Can you help me prioritize them?
Due to the perfect storm of stupidity and catastrophe I am completely penniless. I moved to a new city April 1st with a job lined up and $2500 in savings. Within the first week of being here I had to replace the head gasket, the clutch, and some other little things on my car for a total of around $3000. This was not completely unexpected, but I had been planning these repairs for later in the year. I paid for $1000 in cash and put $2000 on a credit card. After a security deposit and rent, then my car loan and student loan, my savings account balance went down to $0. Throughout the month I have put another $500 for groceries and stuff on my credit card and my total balance is now $3000 which is my limit (credit card was carrying $500 balance at the start of the month.)
Also at the beginning of the month the job I had taken fell through (I was hired as a full time nurse and then was told they no longer needed me). Looking back, they had not formally offered me the job before moving and I should have set things up more concretely.
The good news: I got a job and I'm going to be paid weekly! This week is my first paycheck. It will be for $200. In the future I will be making $600 weekly.
-medication: I am uninsured. I will get insurance august 1.I have three pills left of my antidepressant. I called it in to walgreens and it will be $100. I think this should be my first expense.
-laundry: I have been washing clothes in the tub but really need to use a machine for my scrubs. This will be $10/weekly.
- rent: I borrowed money from my parents to pay for May rent. I would like to pay them back ASAP because I have never borrowed money from them before but I don't know if this makes financial sense (also, they aren't expecting to be paid back right away and do not need the money). June rent will be $550.
-phone: we do not have internet and my phone bill is $100 as I have rung up some data overages.
- car insurance: my car insurance, which I had paid yearly, lapsed a week ago. I know this is BAD but I have had no way of paying for it (again, bank balance zero and maxed out credit card). I think it will be around $80 to reinstate it for a month.
-car loan: through a credit union $250
-student loans: sallie mae $500
-my credit card bill: I want to make this a priority as it has a $3000 balance and the interest is over 20%.
-regular expenses: cat food, groceries, gas, saving money each month for rainy day
I realize that I behaved like a dummy (phone overages especially) and was not financially prepared, and now I am paying for it.
Oh, also: when my car insurance lapsed I stopped driving and used my bike for the last week, but then my bike broke and it won't shift out of the easiest gear so I would like to get it fixed so I can ride it again.
Is this situation dire enough for bankruptcy?
What do I pay first?
Mefites who are good with money: if you were in my situation, what exactly would you do?