Need Advice on How to Start My Life Again

gozyla86 on 10/02/2018 - 15:46
Last edited 12/02/2018 - 15:30 by 1 other user

Hi All,

I am in the process of divorce. It is a rough one. I lost everything and bring with me around 13k CC debt and 50k Car loan. I was kicked out of the house and was living in my car until last few weeks. I have an injury that prevents me to work, I am under WorkCover compensation.

What I owe:

3 Credit cards: CreditLine, Gem, and CBA with a total amount of 13k (which I use for my ex-family appliances,solar systems, and furniture. repayment for all 3: <400/month
Car Loan: Esanda still has more than 5 years and 50k on it. Repayment 1k/month. But I am 4 months behind now.

What I earn:

WorkCover Compensation: 1800/month

I am trying to start all over again now.
Should I try to sell my car and set back for at least another 10k in debt and no car to run?
What should I do at this point as I am thinking of giving up everything?
Money from the divorces is uncertain as nobody knows the outcome of the court until all is finish in the next few months.

Edit:
Thank for all comments, good or bad.
I am not blaming my ex for anything as we have different life now and would prefer my daughter - Izzy able to see her dad and mom are in good term.
I bought the Jeep Wrangler Unlimited 2016. And I was thinking it is not only a cool looking car, but big enough to become a family car. It have 43k on the clock now after 1.5 years. It was working hard for my ex-family. Let hope it will do me one last favour to score a good value when I put it on-sale.
The court will going on for a few more months after this Hearing on Feb 27th, 2018 before finalize. So I am not rely too much on that kind of money, tbh.

Financial

Comments

websterp on 11/02/2018 - 20:50

+3

Best person to ask for advice these days would be Barnaby!
Blottski on 11/02/2018 - 22:37

+1

Just out of curiosity, what caused your wife to kick you out?
- bdl on 11/02/2018 - 23:10
  
  +1
  
  Maybe the business went bust?
  
  https://www.ozbargain.com.au/node/311472
  
  Or their rental property carked it?
  
  https://www.ozbargain.com.au/node/318719#comment-4884842
burningrage on 11/02/2018 - 22:52

-3

I don't know if this is a good idea or going to create a bad precedent but I am wondering if crowdfunding just to help OP get by would help, while OP is going through this situation?
- callum9999 on 12/02/2018 - 06:26
  
  +4
  
  The OP has an income and a large asset, they can get by perfectly fine if they want to.
  
  Which sounds callous but isn't intentional. I feel really sorry for their situation but if you strip all emotion out of it then getting rid of the car will instantly put them on an almost-stable standing.
Bargainaholic on 11/02/2018 - 23:12

+2

Grab yourself a tent mate and camp in your yard if your ex isn’t letting you back in.

This tent seems like a solid deal
https://www.ozbargain.com.au/node/359436

Gumtree post shared accomodation (8 ppl sleeping capacity) for extra cash income
iFetch on 11/02/2018 - 23:41

Hi OP, hang in there. I hope you find the strength to make the most of your situation. Good on you for reaching out here and asking for advice/help.
I haven't been in your exact situation so take this with a grain of salt:
Sounds like you need to get back to basics. Try to cover your basic needs without any additional extras, and save as much as possible to reduce your debt. Are there any jobs which you are able to do with your injury? Even a part time job would allow you to bring that debt down faster.
UFO on 12/02/2018 - 00:32

+5

OP, I know it feels like world is crashing in… and I know you don't want to hear it, but it could be a lot worse. It really can.

First things first… the car. Get rid of it.
Yes you'll have a debt afterwards, but you also won't have the monthly expenditure either.
And $13k debt in credit cards etc, sounds like a lot… but its not. There are people in circumstances like yours that are $200,000 in debt (sharing in bad house, business, and car loans, and tax debt too!).

In your situation, if you still have good credit (if your car loan is well overdue maybe not, but not end of world), refinance to 0% balance transfer.
If you cant, you need to make sure you are at least making the min repayments every month.
Debt can be fixed/adjusted/worked on. Bad credit will haunt you for a lot longer.

Don't claim bankruptcy. It may sound like an easy out and is tempting to those that don't know, but it will stuff your life. And certainly don't do it for $10-20k.

How long until you can work again? Is workcover at $1800pm a thing that's wrapping up soon?
You need more income. Second job packing shelves, labouring, anything. There's always something out there for those that REALLY want to work and not just make excuses on why they cant work.

Speak to local mens shelters. They can provide meals and temporary accommodation for somewhere safe to sleep. If you haven't got friends/family to hit up, that is your first point of call. That'll give you food and shelter until you can work out something more permanent.

Lastly and most importantly… don't look at the whole situation and try and sort it all our at once. Its too much, too overwhelming.
Sort out little sections one by one. It may seem like they aren't making any difference to the overall picture, but they WILL if you keep working on them.

One by one. One day at a time. One step at a time.

Sell car. Arrange emergency accommodation. Pay credit card debt minimums (or contact card issuer to ask for a month or two financial hardship).
Public transport will have to do for the time being.
- s3n on 14/02/2018 - 10:33
  
  Great advice I would say the same thing
  
  Glad there is support out there on ozbargain :)
- gozyla86 on 29/04/2020 - 20:59
  
  +1
  
  Hi UFO,
  
  Thanks you. As of today, I am debt-free. with a decent rental property that I can afford, a new job and still able to keep the car (paid it off yesterday)
  
  Thank for your support
  - mskeggs on 29/04/2020 - 21:10
    
    Great to have a positive update.
    All the best going forward!
  - sharka on 29/04/2020 - 21:16
    
    Just out of curiosity, how did the court case go and how has your daughter been post separation?
DarkProject on 12/02/2018 - 01:08

+1

Ozbargain is the last place you should come for advice, unless it's the endless autofellatio Reddit style comments you're hoping for.
Cheeper on 12/02/2018 - 01:46

+1

Like others here I can vouch just how hard it is to start over and if it really is the end of the marriage then that is what you have to do.
Until the settlement is finalised you will not know exactly what the full extent of the pain will be.
One of the first things I would do is discuss with the ex about offloading that damn expensive car and minimise the interest accruing. Do not do this without her involvement and written approval.
All you can do is dust off and brace yourself for some hard times in the coming years. One thing that will make the future a lot more stress free is to reign in the easy credit habit. That crap will steer you straight to the house of horrors again and again. Clear the decks any way you can and live within your means.
Things do get better and the sun does shine again… If you have learnt anything from past screw ups then just remember the lesson and try to not repeat them.
ladybug1 on 12/02/2018 - 02:30

Hi, sorry to hear about this. Have you seen a financial counsellor? The Salvation Army has them-you pay on a sliding scale.
ahayesy116 on 12/02/2018 - 08:24

+5

Hey brother, sounds really tough! My main advice would be to plug yourself into a community of people. We’re made for relationships. Other people have suggested good financial steps to take. I would just add that if you don’t already have a community, find one - I found that my local church was very friendly and helpful. You might prefer a different community - but get people around you who can get behind you and encourage you.
captain fluffy on 12/02/2018 - 09:03

Oh man, that is ROUGH! Best wishes to you, pure respect.
syousef on 12/02/2018 - 09:06

+6

Holy crap on a cracker. Where the hell are the mods????

I mention that I think I'm being followed around and downvoted and they start babbling about mental health services and paranoia.

OP states "I am thinking of giving up everything", lots of people here attack choices that may have been perfectly reasonable to OP before marriage breakdown and workcover claim, and not a peep.

OP if you are thinking of doing something drastic but don't really want to talk to someone. If there is no one close to you:
https://www.lifeline.org.au/

The finances are important but they're details.
- mskeggs on 12/02/2018 - 10:05
  
  +4
  
  I mention that I think I'm being followed around and downvoted and they start babbling about mental health services and paranoia.
  
  Maybe it was a mod doing the stalking da DA DUH!
  But seriously, they could see who is doing the downvoting, and if there is no consistent user doing it, then you probably aren't being stalked. Besides, it is just fake internet points.
  In any case, please have a + from me for the very sensible comment that finances are ultimately just details!
b1ackmai1er on 12/02/2018 - 09:17

+4

Speak to your lawyer, you may be better off carrying the debt to keeping the asset base.

Once the capital is released from selling your car and reducing your debt you may find that this is used against you in the allocation of assets.

Divorce is tough. You really need to get your head around the fact that you really, really are starting again and self help books are no comfort when you are broke today, tomorrow and for a long time in the future.

Be the best person you can, don't fight over things that are not imporant, don't jump into a new relationship, don't demonize your ex with your new partner.

Best wishes.
- secondstory on 14/02/2018 - 18:32
  
  I agree with running this past professional advice because this is definitely something to check.
  
  My opinion is selling the car would be better to just offset the car debt itself (still negative, but if he can pay some back straight away instead of holding the cash and "get ahead" of his repayments and pay back the cc ones if they have higher interest..).
  
  He's still the one making the repayments on the car for the moment but by holding the car the value of the asset might also work against him if he gets to keep it and during the split they value it higher than what he could actually sell it off for (and I also think he should sell it for a cheaper alternative anyways regardless of whether its before or after that happens)
simmos on 12/02/2018 - 09:26

+11

I just want to say to this poor bloke, I'm so sorry for your situation and to ignore some of the disgraceful comments on here and embrace the very many wise and humourous ones. For those clowns who use sarcasm and distain for this man, you are the one with the problem, not he. At least he is calling for help. I will not offer you the financial advice but just to say I really feel sorry for you and hope that good tidings come your way. To those who write crap against this man, let karma deal with you. One day YOU might be living in a car or a carboard box and you know what, I won't be giving you ANY sympathy.

Stick with it mate, join a community group or a church, work hard and follow some of the wise council on here and your life will turn around. All the very best mate, I wish you well.
blah88 on 12/02/2018 - 09:32

+1

I'm terribly sorry to hear your situation. Must be soul breaking. Have you tried family counselling? I don't know about your relationship status but I maybe give it some time and maybe try to get back with your wife? I pray everything goes well. Don't lose hope at all circumstances. God bless.
- blah88 on 12/02/2018 - 09:34
  
  and yea if you can find a local church to seek some community support. They are morally obligated to help.
  - gozyla86 on 12/02/2018 - 19:22
    
    It was actually a case of family domestic violence with I as a victim. Both mentally and physically. I tried to go to relationship mediation but she did not want to go
    - itajac on 13/02/2018 - 12:18
      
      I don't want it to sound like an excuse because abuse is not acceptable ever. Just wondering if the abuse was always present in your relationship or if something triggered it( birth of baby maybe?).
    - thriftybunny on 14/02/2018 - 08:59
      
      Sounds like she's also financially abusing you right now.
    - secondstory on 14/02/2018 - 18:52
      
      +2
      
      If you have not already done so, please also seek out a domestic violence support line such as 1800Respect, it is never too late to contact them.
      
      They will be able to offer you further advice and assistance for your situation without judging and should be able to offer you so much more than what we can as they will have experience and might be able to refer you to other free professional services that may help.
AbsX on 12/02/2018 - 10:00

+4

I don't understand how the estranged wife nearly always has the authority to kick the husband out of the house and thrown into the streets.

If it was me I wouldn't put up with it and demand her to find alternate living arrangements but I also understand the need to get out of a really bad emotional situation. Best of luck OP!
- Yarkin on 12/02/2018 - 10:20
  
  -2
  
  How do you know OP is the husband?
  - simmos on 12/02/2018 - 11:00
    
    +2
    
    Because probaby like me, he has never heard of a woman being slung out of their own place. Not the case the other way around. The law is all stacked in favour of mothers. Thats just the way it is.
  - ronnknee on 12/02/2018 - 11:02
    
    +7
    
    OP mentions the wife here, here and here in mid 2017.
    
    OP also mentions his name here which is a boy's name.
    
    By deduction, OP is the husband.
- thriftybunny on 12/02/2018 - 12:54
  
  Not sure if it's always the case, in this situation she's the primary carer for their baby so that's probably why she's staying put.
jebsav on 12/02/2018 - 10:24

+8

Sorry to hear about your difficult circumstances OP. The first thing you need to do, above all, is realise you CAN make it through this, and that with enough time, patience, and hard work you'll be in a much better position than you're currently in. Here are my bits of advice:

Talk to the hardship department of your credit card institutions. You'd be surprised how much help they're able to give to someone going through as difficult a time as you are.
Obviously some are going to be more helpful than others but every little bit helps. They can give you things like deferrals, and in some instances 0% interest for a period of time, if your circumstances can be proven. Give it a go, the only thing you'd lose is a bit of time doing the assessment over the phone.

Call the national debt helpline. It's a free service. The number is 1800 007 007, you can speak to a qualified financial counsellor who is able to give you proper advice on what to do and how to proceed.

Sell your car. Yes its going to be a kick in the nuts and the ego is going to take a hit, but you need to get yourself stable and minimise the stresses in your life. Whatever amount you get, keep some for yourself to set yourself up, buy a significantly less expensive car, and put the rest on the loan so you have some breathing room for a few months to not worry about payments.

Also give a call to Beyond Blue, their number is 1300 22 46 36, your mental health should be a very big priority for you. Given your circumstances I imagine you're going through a lot of self pity, but you must avoid this attitude at all costs if you want things to get better.

Is your situation difficult? Of course it is. But do you realise how much worse it could actually be? You're still alive and from what I can see your mental faculties are very much in place, which means you have the chance to experience gratitude and yes, even hope. These are incredibly important things and will be the foundation for your being able to live a good, meaningful, love-filled life moving forward. All is not lost, not even close, you're simply experiencing a very painful time, but you will get through it.

Take it one day at a time, write a list of what you need to do so you don't feel overwhelmed, and, though it's going to be painful, cultivate a sense of gratitude about your life.

If you can do these things with patience and hope, you WILL get through it and you WILL be able to live your life more meaningfully.

Best of luck OP, let us know how you get on. You've got a big supporter here who believes in you and wishes you the best.
Geryatric on 12/02/2018 - 10:50

+1

Pretty straight forward, sell the luxury car.
You can buy a decent used car for $5,000.
Wallyt99 on 12/02/2018 - 11:13

-1

You can't sell the car because you don't own it. If you do sell it - you need to be able to pay out the entire finance owing… So would need a loan to do that - and who is gonna give you one?

The car will be repossesed soon anyway.

Declaring bankrupt seems a good option at the moment.
kylarstern on 12/02/2018 - 11:14

-2

Declare bankruptcy! You don't go by Monopoly, man. That game is nuts. Nobody just pick up Get Out of Jail Free cards. Those things cost thousands.
Bankruptcy is nature's do-over. It's a fresh start. It's a clean slate.
- s3n on 14/02/2018 - 10:36
  
  Not really it takes like 7 years before you can get another loan so as per previous advice I wouldn't do it for $20k worth of debt
  - kylarstern on 14/02/2018 - 22:06
    
    -2
    
    Okay obviously you lot have never seen The Office. It's a reference to the bankruptcy episode.
    I AM QUOTING CREED FROM THE OFFICE.
    I AM NOT GIVING HIM ADVICE, THIS IS A JOKE YOU DIMWIT
- UFO on 14/02/2018 - 13:42
  
  +1
  
  Terrible advice.
  
  DO NOT go Bankruptcy, and certainly not for only $10-20k.
  It's 7 years until you are cleared from it, but it still stays with you forever.
  Any insurance or loan you apply for in the future, or any public service job or position of financial responsibly, or traveling overseas/visa applications etc will ask HAVE YOU EVER BEEN DECLARED BANKRUPT?.
  
  Answer falsely and you're stuffed. Answer truthfully and you will either be heavily disadvantaged, or simply denied completely.
  
  If you're going for bankruptcy as "nature's do-over" it better be for an amount of money you could never hope to repay in your working life.
  I can't stress this enough, it is NOT a "Get out of Jail Free Card".
  - kylarstern on 14/02/2018 - 22:03
    
    -3
    
    Okay obviously you lot have never seen The Office. It's a reference to the bankruptcy episode.
    I AM QUOTING CREED FROM THE OFFICE.
    I AM NOT GIVING HIM ADVICE, THIS IS A JOKE YOU DIMWIT.
    
    For your information, I am a housing investor and I am highly efficient with my money. Dont you dare tell me what I already know. Bitch please. Maybe a take a chill pill and understand what sarcasm, parody and literary references are before acting all high and mighty on your self-righteous high horse.
    - UFO on 17/02/2018 - 15:38
      
      Up the meds buddy, because the current dose obviously isn't working.
      
      Don't get angry because people don't get your lame jokes. Be funny! (like your above post… that was hilarious!)
      Oh, and being a "housing investor and highly efficient with money" doesn't mean you know anything about, well… anything.
      
      You offered no actual advice related to your experience, just a silly joke no one understood and in poor taste considering the seriousness of the OP cry for help.
      
      And you are claiming expertise, not only in property investing, but in literal humour too.
      
      And guess what, you really suck at one of those. I wish you luck in your other field of expertise.
eleon00 on 12/02/2018 - 11:40

Will this car be helpful to you if and when you get work? From your post, I can see that your car loan is your biggest liability. Either liquidate your car and pay off some of that debt or get a source of income that will offset the payments you make. Keeping a car is not bad if you can turn it into a good debt (use it for getting to from work, delivering goods/services,etc). From there, reassess your finances and see how you can consolidate your high interest card debts. Work with your banks/financial institutions if you can go into payment plans considering your situation. They will most likely suspend the card and give you a payment plant to work with. I suggest consolidation and close off those cards.

Going through divorce can be stressfull enough notwithstanding financial ruin. Work through the problems one problem at a time and believe that it will definitely get better.

Best of luck.
gravel on 12/02/2018 - 11:43

This sounds like an awful situation. Please seek proper professional advice. There are many places you can go to get help. This is not the right place.
[Deactivated] on 12/02/2018 - 11:53

+1

"I am thinking of giving up everything"

this is the biggest concern. As bad as things look now, finances will work out eventually and there is more to life. Your mental health is more important. I would suggest that your top priority should be talking to somebody about this and try and maintain a positive mindset. That is the foundation for tackling everything else
Ace26 on 12/02/2018 - 12:24

+6

Some of the fellow OZB’s have given great advice already. But here are my thoughts
1. Acknowledge and Accept that past is in the past, and you will have to live a frugal life for a foreseeable future.
2. Believe in the fact that this is not the end of world and things will work out eventually
3. Find share accommodation (pay as little as possible per week)
4. Sell the car and start using public transport (travel off peak and on Sundays when it’s cheaper to travel)
5. Call up your credit card providers and ask to
a. Ask to freeze payments and interest
b. Ask for a fixed monthly payment (whatever you can afford say $50 each or something)
c. Be honest and be prepared to show evidence.
d. Alternatively, find a company that offers this service for free.
6. Save up enough money to buy a reliable cheap car. (like others said 1-2k car, that takes you from A to B and back)
Hope it all works out for you man
aaachu on 12/02/2018 - 12:24

If you have credit remaining in your credit cards, call them and see if they do balance transfers offering low/no interest period (usually ranges from 6-12 months for under 3%). I once had debt on multiple cards, and I just kept transferring funds from one to another and for a few years I was paying an average of 2-3% on my debt. Credit cards can be an asset if used wisely.

If you don't have the capacity, call them up and ask to see if you can increase your credit limit. Please do this with care and do not increase your spending, use the extra credit to consolidate your cards and get your interest rates as low as possible, and pay it off ASAP.

All the best.
[Deactivated] on 12/02/2018 - 12:25

+1
I didn't read the rest of the comments, I'm sure there are great ones there but here are my 2c as I've seen this before.

First things first - don't give up! That is the most important thing.

I've seen a lot of people in your situation and helped some. Among the memorable ones, there were lawyers, doctors and saw a couple of police officers as well.

Time will solve your problems financially as long as you are willing to fight for it. There are things you could do to cushion you fall.

get rid of your car and/or get another cheaper (1 - 2k) one or move by public transport

speak with your friends
The more the marrier
Don't ask for help, just let your emotions out and speak about your problems. Whoever can help you, will on their own.

make a plan
Doesn't have to be the best plan. Just make one. you will adjust things along the way, but it gives you your next step.

try to get some referrals
If you are in Victoria, go to any police station today and ask for referrals. Ask for financial assistance referrals. Also, ask them to sort you out with crisis accommodation.
Go to your local council and ask for help: financial / accommodation / mental health.
Try to get as many services involved as you can.

get a concession card

work towards something
Having something to look forward to, is the most important thing

There are others like you or worse, read their story, learn from it and move forward. From Quora:
* What is a difficult situation you faced, and how did you overcome it?
* Stories

Good luck!
Johnny L on 12/02/2018 - 12:26

+1

Hi OP, just hope I can put my 2 cents out here. I have not officially been through one but got really close.
I looked up all sorts of information on this while going through my stuff, and I know that the pain/loss can be from all aspects (mentally, financially, physically).
I find myself taking the biggest hit from losing my identity (as a provider, husband, family person).

I am sorry for your loss. I won't go through the things that many has said here financially, just want to give you genuine support.
Hang in there. Anything that you are going through now, will pass. You may not be able to see it now but trust me, it will.
You are not alone. Simply look up online and you will see that its true. https://www.reddit.com/r/Divorce/
Find stuff that helps you gain your ground again. Things that you like to do, hobbies.
Seek help if you need to. Friends and family is the support you need now- don't keep this to yourself. You will find that while they may not be able to do anything for you, but being there will mean the world.

All the best OP.
Zanadar on 12/02/2018 - 12:31

First, I have a question… what other finances/fully or partially owned assets are subject to the divorce settlement?
- sparkles on 12/02/2018 - 12:48
  
  +1
  
  Agree, there are so many other factors to consider in this situation. Who owns the house? How much capital is in the house? How long will he be on WorkCover? How much is the car actually worth now? The answers will have a major bearing on the best way to attack this situation. It's not that dire, it can be overcome by making the right moves now.
  - Zanadar on 12/02/2018 - 13:31
    
    Yeah and if there aren't any saleable assets then there wont be any instant relief coming, therefore drastic action is required to reduce op's debt profile to one more suited to his income.
    Which is probably warranted regardless.
    
    Reality is he needs to get better because without any assets $1800 a month won't go very far after rent and living expenses.
belgavin on 12/02/2018 - 12:37

+3

Already plenty of great advice here and all I'll add is to budget 10-15 bucks a week for a gym membership.

It will help keep negative thoughts at bay, you'll look great, make new mates and you'll wonder why you didn't do it earlier.
- Zanadar on 12/02/2018 - 12:38
  
  Good advice but I am not sure what gym you can go to for 10-15 bucks a week?
  - belgavin on 12/02/2018 - 12:41
    
    Don't know what it is like in the suburbs but I'm in regional VIC and it is under 10 bucks
    - Zanadar on 12/02/2018 - 12:43
      
      That's cheap!
  - infinite on 12/02/2018 - 12:56
    
    +1
    
    Almost every major gym, chain of gym's and 24/7 gym in Australia is $15 a week or substantially less.
    
    The last 24/7 gym I was at was $8.50 a week with no contract, but they had to move out of the facility they were in due to a fire & re-build. The now closest 24/7 gym I'm at is only $12 a week (and I consider that expensive).
    
    The only reason why you'd be wanting to pay more than $60 a month for a gym, is because it offers specialized services and programs above the gym's normal facilities (Like a gym with competitive MMA/MuayThai/Boxing classes and programs, with quality coaches on staff).
  - The Wololo Wombat on 12/02/2018 - 13:50
    
    +1
    
    Plenty. One near my place is $9.95pw, no contract.
- frostman on 12/02/2018 - 14:05
  
  +5
  
  Already plenty of great advice here and all I'll add is to budget 10-15 bucks a week for a gym membership.
  
  The guy is knee-deep in shit in relation to financials and you want him to spend another $60 on needless workouts?
  What a walk in the park or jog at a local reserve with exercise equipment isn't sufficient?
- spiff on 12/02/2018 - 16:27
  
  +2
  
  Also you'll always have a shower and drinking water at a 24/7 gym.
Trying2SaveABuck on 12/02/2018 - 13:47

You haven't really given enough information about your situation ie are you on Workcover temporarily or long term? - knowing workcover they wont cover you for longer then they have too

Will you be returning to the work force if so when and how much do you think you will earn? - if not returning to work i'd probably ask why and if you have capacity to do another occupation?

$1800 a month with that much debt no one will be able to dig you out of it easily you still need to live i'd agree with most people for you to go and get some professional advice.

I hope it works out for you good luck
frostman on 12/02/2018 - 14:02

+1

Ignore the rubbish comments on this thread,

your priority in order:

1.)Find yourself a job that can boost your wage that does not contravene with your injury nor the compensation claim conditions (if allowed, check with your lawyer)
2.)Pay off your Credit Cards first, they have a higher interest rate than your car
3.) Your current income will not cover the car loan, I suggest you look to borrow some money from friends/family
4.) In terms of companion, stroll down the RSPCA and adopt a low maintenance pet like a cat. 60c cat food isn't much but you will have something that you can really interact with

Some guy here said:

Like everyone else has already said, the obvious thing to do right now would be to downgrade your vehicle

You cannot sell the car (particularly with Essanda) they will rip you with an early exit fee which will result in a greater loss.
- sparkles on 12/02/2018 - 19:01
  
  +1
  
  Suggesting he borrow from friends (and dig a deeper hole) isn't great advice. Neither is advocating getting a cat when he lives in a CAR. What the what.
  - frostman on 12/02/2018 - 20:09
    
    Suggesting he borrow from friends (and dig a deeper hole) isn't great advice
    
    A deeper hole from friends/family? I wonder what sort of friends/family u have? Loan sharks or something?
    
    Also, he doesn't currently live in a car:
    
    I was kicked out of the house and was living in my car until last few weeks
    
    You're anything but sparkles chump, get a grip
    - sparkles on 12/02/2018 - 21:08
      
      damn frostyboy, you are so salty LOL
MementoMori on 12/02/2018 - 14:14

Consider a financial planner - there are very good ones who can be paid from your Super account, so $0 cashflow impact.

Using a budgeting app like Moneysoft / Pocketbook was the best thing I did in regards to budgeting and understanding where it all goes.
DoyA on 12/02/2018 - 14:18

Get some "Red Pill".
wongsun on 12/02/2018 - 14:29

+1

Chin up mate. First step is to get your own thinking right. Sounds like you have been through a tough time. Important to remember that its always feels the hardest in the midst of it all. You will look back and hopefully it will have been a learning experience for you. We often do our best maturing/growing as individuals during tough times. You will get through this.

Next I would consult a credit mediation firm like the following:

www.creditmediation.com.au

I am in no way affiliated with this firm but I know they specialise in helping clients get out of tricky debt situations. This often involves them getting significant portions of debt written off depending on your personal circumstances. I think they work on the premise that credit providers would rather get a portion back on how much you owe them rather than you go into bankruptcy and them potentially getting nothing.

Have you also checked your superannuation to see if you have income protection you can potentially claim upon. These typically offer better benefits than Work Cover.

Others on this post have suggested some good ideas with regards to using your car to earn cash. ie. Uber. Prob worthwhile checking to see that this won't affect your Work Cover payments though.
- Zanadar on 13/02/2018 - 15:53
  
  ^ This! Nicely said.
shaiguy on 12/02/2018 - 14:50

-1
I know this sounds bad and would never usually recommend it but declare yourself bankrupt. The $1,800/mth you earn is not what you can afford. In your circumstance, I think with the little income you should be more concerned about other things than repaying debt. Before you do that you could see if they can put things on hold for you.

Sell the car. Ongoing expenses are not worth it.

Consult your mental health practitioner and see if you have depression and get yourself on the mental health scheme for 10 cheaper visits to a mental health practitioner.
- Zanadar on 12/02/2018 - 16:09
  
  How is declaring bankruptcy going to help?
  - yoquierotaco on 12/02/2018 - 16:30
    
    +1
    
    i would go speak to someone first if you want to go this route. Some info here: https://www.afsa.gov.au/insolvency/i-cant-pay-my-debts/what-…
    
    also, take a look at MMM on how to live a frugal life. A link regarding debt is here but the website is full of good tips: https://www.mrmoneymustache.com/2012/04/18/news-flash-your-d…
    - shaiguy on 13/02/2018 - 12:43
      
      Yes, good comment - suggest you speak to someone about it. Like I mentioned, I would not generally recommend bankruptcy given potential future implications, however, the immediate requirements are more dire and important in this case.
  - frostman on 12/02/2018 - 16:31
    
    +1
    
    it wont, this guy is talking sh*t,
    OZB is full of solicitors, financial advisors and professionals
    
    2.Sell the car. Ongoing expenses are not worth it.
    
    Oh yeah, never mind the financial encumbrance on the vehicle which makes it near impossible to sell with that much loan life left, but you also have to pay out the Financier with an early termination fee which is pro-rated on the loan term. That could well be $10,000+
    - shaiguy on 13/02/2018 - 12:40
      
      Are you kidding me? Did you even read 1?
      
      Arrange for the bankruptcy trustee to arrange it and sell the asset if you want.
      
      I would suggest you are more considerate before you call others full of sht - perhaps I am a successful solicitor, financial advisor and/or professional….
    - frostman on 13/02/2018 - 12:54
      
      @shaiguy: Do you even understand the ramifications of declaring oneself bankrupt?
      The bank will assign the trustee to manage and look after all your financial affairs FOR THEIR BENEFIT.
      If the guy is going through stress, this is quite possibly the last thing you should have.
      Furthermore it screws him over when he starts a new life where he cannot apply for a Credit Card, HomeLoan or any other financial product.
      
      perhaps I am a successful solicitor, financial advisor and/or professional….
      
      I sure hope not
    - shaiguy on 13/02/2018 - 13:40
      
      @frostman:
      
      Re knowing ramifications. Yes, I do (as stated a couple of times I would not normally recommend but in this circumstance it would be beneficial).
      
      Do you even know what a bankruptcy is? Your statement that he cannot apply for a credit card, homeloan or any other financial product when he starts a new life says enough about what you actually know. So based on your final comment, no one should ever apply for bankruptcy based on future financial product ramifications? or needing to have a trustee to look after financial affairs? Did you even read his situation (Note, the OP is on a miniscule workcover compensation living out a car)?
      
      Re the car, each year it is also depreciating at likely close to or more than the A$10k, can he afford the maintenance costs to ensure salability, petrol, comprehensive insurance (many cars are written off now so can he afford to pay out a write-off or declare bankruptcy then?), interest on repayments, etc.
      
      Do you even think at all before you write?
    - shaiguy on 13/02/2018 - 13:52
      
      @frostman:
      
      Furthermore, in a voluntary bankruptcy the bank does not appoint the trustee… so who's talking sht?
    - frostman on 13/02/2018 - 14:57
      
      @shaiguy:
      
      So based on your final comment, no one should ever apply for bankruptcy based on future financial product ramifications?
      
      Bankruptcy is usually executed by business owners who've taken out 100s of thousands $ for a business venture that collapsed and paying back the interest is unattainable. and Yes, like a criminal record, Bankruptcy is a record which makes it very difficult to gain financial loans in the future. Otherwise you would find 100% of the populations driving Ferraris and Lamborghinis and claiming bankruptcy then moving on as usual.
      
      Did you even read his situation (Note, the OP is on a miniscule workcover compensation living out a car)?
      
      Yes I did, however you didn't. No he doesn't currently live in car.
      I feel sorry for people like you that come back with trash talk thinking they've got a point then get slammed in the face.
      
      Re the car, each year it is also depreciating at likely close to or more than the A$10K
      
      HAHAHA
      So a 2018 Corolla Hatch at $35,000 is $5,000 in 3 years?
    - shaiguy on 13/02/2018 - 19:11
      
      @frostman:
      
      Business bankruptcy vs personal bankruptcy… look it up…
      
      Do you understand depreciation on cars? Can you even look at Redbook? Tell me how much his vehicle depreciated over the past year.
      
      You just keep failing… stop even trying honestly…
    - shaiguy on 13/02/2018 - 19:17
      
      @frostman:
      
      Furthermore re your comment "bankruptcy is usually executed by business owners…"
      https://www.afsa.gov.au/statistics/causes-personal-insolvenc…
      
      Non-business related causes of personal insolvencies:
      Personal: 2016-17: 25,225
      Business Related:: 2016-17: 5,670
      
      For someone accusing others of talking sh*t basically nearly every statement you have made is just that.
    - frostman on 13/02/2018 - 20:04
      
      @shaiguy:
      
      Do you even know what a bankruptcy is? Your statement that he cannot apply for a credit card, homeloan or any other financial product when he starts a new life says enough about what you actually know.
      
      http://bankruptcy.findlaw.com/chapter-7/pros-and-cons-of-dec…
      
      2.Do you understand depreciation on cars? Can you even look at Redbook?
      
      Yes, and it's certainly not $10,000 per year as a global formula.
      
      Tell me how much his vehicle depreciated over the past year.
      
      We don't know what vehicle he has, so none of us can make that assumption, well…you can as you're full of assumptions
  - shaiguy on 13/02/2018 - 13:48
    
    Zanadar -
    
    For professional, independent advice call a financial counselor on the National Debt Helpline. More details here:
    
    https://www.afsa.gov.au/insolvency/i-cant-pay-my-debts/get-h…
    
    Re bankruptcy - an informative article - there maybe more upto date reading though:
    
    http://www.smh.com.au/money/on-the-money/consider-all-option…
    - Zanadar on 13/02/2018 - 15:52
      
      Thanks but i still haven't learnt anything… he needs financial advice 100% but i still don't see how bankruptcy would help op.
      Best option I can see is a legally binding debt agreement, and if possible get into a cheaper car because that car debt is going to hurt op a lot otherwise.
      
      Op's real issue is his blaming everything on the divorce where i see all signs point to the idea that there is not much to liquidate from the divorce anyway.
      
      Time for a reality check.
      
      BUT THERE WILL BE A WAY FORWARD FOR SURE… JUST NEED A PLAN AND SOME ADVICE
MalTurny on 12/02/2018 - 15:55

+4

Is that you Barnaby?
shamid202 on 12/02/2018 - 16:30

Well in my opinion apply for a public housing if you are homeless. or there are other urgent housing providers for homeless people so you would get out of this situation.

transfer all your credit card balances to one credit card. usually if you apply for some credit cards they will provide you benefits like you won't need to pay for the debt for the first 6-12months without interest. this way it will be a lot easier to deal with your current expenses.

for the car, if you are bankrupted which you are, you can apply for bankruptcy, its true you won't be able to get a loan for the next 5years probably that easy but your situation which shows you are unable to work means no one will give you a loan anyway.

You must free your self from the debt. thats the most important thing you have to do.

i can not tell you what you need to do next as its your life.
idonotknowwhy on 12/02/2018 - 17:30

+1

I'm guessing you're 31-32. Do you have parents living in Melbourne?
If so, they probably wouldn't want to see their son homeless.
Could you crash with them for a while, eat their food, etc?
Maybe borrow some money from them to help get rid of the remaining debt on the car long when you sell it?
Zylam Marex on 12/02/2018 - 21:07

Don't have anything to add that other people haven't said already committe, but I will add you to my prayers.

Stay strong mentally, don't take everything too seriously, take walks and clear your mind with some light netflix and such.

Sort out your living situation first and yes sell the car ASAP and cut down as much dept as you can.

You must have someone who would let you crash on their couch.
Godric on 13/02/2018 - 07:32

+3

Marriage, not a bargain
tjc589 on 13/02/2018 - 10:18

+1 for the Barefoot Investor book

Well worth it as just a simple guide on paying down your debt and putting money in correct areas to get ahead.
idonotknowwhy on 13/02/2018 - 10:28

I was thinking about this again today.
Might be worth talking to a lawyer.
If assets are being divided in the split, then isn't the debt also included?
And observe what @b1ackmai1er said further up:

Speak to your lawyer, you may be better off carrying the debt to keeping the asset base.

Once the capital is released from selling your car and reducing your debt you may find that this is used against you in the allocation of assets.

Since you're Melbourne based, you can get free legal advice from: https://www.legalaid.vic.gov.au/

If you can get more of the assets (we have nfi what you and your ex actually have) or split the debts, you'll be able to recover faster.
stratbargain on 13/02/2018 - 10:30

I feel bad for the OP but this was too amusing to me not to post

https://i.imgur.com/IzimEDj.png

In all honesty thought OP keep your head up. It's not the end and you'll get things back on track. You may want to talk to Victoria Legal Aid. They have some good programs to assist.

Don't be influenced by other people in your family/community etc. You don't need a fancy car. You don't need multiple computers, expensive cameras etc. Sell off your belongings, get rid of the debt and work your way back up.

(You may want to remove some of your personal information online also).
- idonotknowwhy on 13/02/2018 - 15:53
  
  +1 remove your daughter's name asap
Ace26 on 13/02/2018 - 11:02

OP seems to have been facing financial hardship for a little while (based his previous posts)

You may access some of your superannuation early given the hardship

http://www.apra.gov.au/Super/Pages/early-release-of-superann…

OP, you can contact your superannuation company for assistance.

PS: Personally, I dont advice accessing super early but if your situation is so bad it requires you to sleep in the car, then may be its not a bad move.

Also, it's not going to be easy to accessing super early, the key is to show all debt and all evidence in the initial application and try to get payout enough to clear the bills in one go.

Good luck
bargainhunterrr17 on 13/02/2018 - 11:59

You know what's great about hitting rock bottom? There's only one way to go, which is up! prayers to you mate and goodluck!
- pformag on 13/02/2018 - 15:05
  
  +2
  
  Unless you are a tool, and you can go through the rock.
  - idonotknowwhy on 13/02/2018 - 15:53
    
    Kind of not appropriate but you made me laugh so +1
    - s3n on 14/02/2018 - 10:41
      
      Me too! sometimes laughter is the best medicine
yk300 on 13/02/2018 - 18:16

+1

Sorry to hear about your situation.

I would:
1. Look for a 0% cc balance transfer
2. Sell the car
3. Take a moment to settle/not rush into anything new
4. Maybe get a hobby (something simple)

G'luck
BigLeviathan on 13/02/2018 - 22:33
Without looking previous comments from everyone, the following are my suggestions:

Car
Sell it and reduce your debt!
If you live in the area far from public transport, buy a cheaper car (anything $3000 should be sufficient - make sure it's roadworthy certified) OR use car sharing OR carnextdoor OR Uber.
If you want to keep the car (which I wouldn't recommend) whilst you are on workcover; perhaps worth rent out the car to carnextdoor

Work
I know that you are on workcover, perhaps find an online job (such as crowdsourced testing)
If that is not your thing, do volunteer work, get yourself busy and do networking with other people at the same time; who knows the person that you meet might give your future job

Relationship
Divorce is a devastating thing, what you need is friend, lots of them, that will be able gives you comfort. Don't let yourself depressed/blue too long; go to local Meetup, local religious community, local council event and meet new people that has the same hobby with you

Need Advice on How to Start My Life Again

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