[USER]

Hello everyone! Happy new year. I’m reaching out for advice. I am in a pickle where I need advice on how to handle my current debt payments quickly.

I started a photography business about 4 years ago, which did well and I was able to maintain steady income for the first 3 years — but the last year my business has quiciky declined and whittled down to just one client and I have not been easily able to keep up with my financial obligations the last few months.

This is largely due to extenuating life circumstances with family/personal complications that have been enormously stressful to the point where my mental and physical well-being have now taken full priority, and has certainly negatively impacted my ability to continue managing and running my business effectively.

Not to mention the economy and many businesses cutting out their need for creative content and marketing due to lack of budget.

I initially spent about $20,000 to purchase lighting, cameras, lenses, and gear, which over the years I have not recovered from fully.

And this past year I made poor decisions using more credit cards to cope with the heavy stress I was under and increased cost of living — so now I carry about $40,000 of credit card debt total.

I have been applying for jobs over the last 6 months so that I can create steady income again, but I have not been able to land a job yet. It has been very difficult.

My plan was and still is to just get a regular job and make payments and work on whittling it down.

However, in the meantime, I am unable to make my minimum credit card payment and my current bank offers no option to defer even one payment even for a month.

So they are trying to send me to collections even though I called in today before my payment is even due in my attempt to get ahead of the problem at hand.

I have not missed one payment in 20 years or even once in my life and I’m shocked that they are not willing to work with my situation at all.

On top of that, my ex-husband lost his job and I have not received any child support over the last 5 months.

So I’m needing a very quick solution on how I can consolidate the credit card debt I owe from this specific bank so that I can pay them up and square them away as I really prefer not to ruin my credit if possible.

That is where I’m asking for your help and advice. Can somebody please advise me on a trustworthy debt consolidation loan company that has reasonable interest rates, and good reviews?

I’m completely overwhelmed with the options out there and don’t trust a lot of them due to the fact that they tend to take advantage of people in these situations.

I’m not looking for advice on a long-term strategy rather than a short term one right now.

I already understand it’s going to take a lot of proactive work and chipping away at the debt and getting creative with solving these problems and issues, I’m dealing with in my life.

I would appreciate refraining from any negative judgments or negative remarks on my situation, I do that plenty enough on my own.

Thank you for your help

[Rosie]

I am sorry for your challenges.
Can you drive for uber Lyft or similar in the short run for extra money?

[Roxanne]

Photogapher here!
Can you pivot your business and offer something different? Even something like working as a subcontractor (second-shooting weddings)? Try another genre?

Can you host mini session marathons to help get back on your feet?

Rebrand to appeal to high-end clients (assuming you might be on the cheaper end, only because my clients haven’t really been affected by the economy and I have more luxury pricing).

I wouldn’t throw in the towel on business just yet. But see if you can take on gig work for the time being to stay afloat.

You might also be able to do balance transfers to a different credit card.

[Lisa]

Have you considered a home equity line of credit? If you own your home the equity could be used to pay debt.

Also, you could rent a room or two in your home for extra cash on Airbnb or VRBO or to someone you know for a longer timeframe.

Best of luck to you. I know this is a difficult situation.

[Matt]

I’m sorry your going through all that!
Do you still have the camera gear? If so, why not sell it quick to help get you by and be able to start attacking those debts?

KEH or MPB are both companies that buy and sell camera gear and give “ok” $ for the items.

[Stephanie]

Take any job both of you can get until the job you are looking for opens up.

If either or both of you are able to get 2 jobs it would be even more helpful

[Teresa]

Since you have been out of the work field for awhile, I suggest going to a temp service company to start working while looking for a permanent position.

That is how I started back into the working world after 6 years of being a stay at home mom.

Look for cafeteria work from your school.

This will give a few dollars but also afford you time to look for another job.

[Susanna]

I have been in similar hardship situations in the past and I can tell you that there’s really no such thing as a debt consolidation loan with reasonable interest rates and good reviews (unless you have pristine 800+ credit and good income).

Most of the finance companies that offer them charge astronomical interest rates and you’ll end up paying back more than twice what you borrowed in the end after origination fees and the high interest rate.

Your best bet for a reasonable interest rate would be a loan via a credit union, if you bank with one, or opening a new credit card that has a 0% interest balance transfer feature, but that takes time to process even if you qualify for it.

If you don’t have provable income, unfortunately that makes it harder, but if you have a good credit score then that might help.

That said, I used to work for a credit card bank, and I find it hard to believe they offered you NO help or options when you called, especially if you have a good account history.

I’d call again and try a different agent; ask what they can do to assist in a temporary hardship situation- defer payments, maybe?

And then focus your energy on either getting a job, or perhaps offering portrait photo shoot packages to get some immediate income coming in.

[Susan]

If you are unable to make your payments, no one is going to lend you money for a consolidation loan and you are unlikely to be approved for a credit card to do balance transfer.

[Jennifer]

Your situation sounds like why we have bankruptcy laws. What good is good credit without a job? If you’ve been looking for a job for six months and found nothing you either need to expand your search geographically or retrain into some new skills.

I understand you want to do the right thing but sometimes the right thing is a hard reset on your total circumstances.

That may mean filing for bankruptcy and moving to a city that has opportunities for you and your kids.

[Lindsay]

Have you already applied for unemployment? I’m not sure if it’s state specific but even self employed people in my state can get unemployment.

Or any type of social nets (Medicaid, CHIP etc.)

[Tanya]

Ask your credit card company specifically if they have any hardship programs.

They may not allow you to deffer payment, but you could qualify for a hardship program which may help (some include halting interest charged and setting a lower minimum payment, but it could freeze your card).

[Kight]

I know you asked for short term solutions, but I want to share a thinking outside the box problem people might need a solution to.
Social media presence is a must for all businesses at this point.

I can remotely manage a geographically dispersed team to edit and post content for some of the small businesses I work with on the side, but getting the actual content is a pain in the butt.

For example, right now I have a client with low quality equipment and no videography skill. (Their business actually relies on photos for a large part of their sales, too, and the quality is abhorrent.)

I don’t have time to go down there and spend several hours each week recording the content that the post production team will edit for different platforms.

I’m currently thinking about putting an iPhone on their tab so they have something better to use, though what I really need is someone who knows how to capture the type of content that makes for good social media fodder.

If I saw an ad on Facebook Marketplace right now offering one-day equipment rentals, I’d likely jump on it.

If I could find someone near this client (rural area) who has a clear portfolio and price list to go twice per month for three hours each, I’d likely add then to the team.

The problem is, I can source development talent all around the world but the videographer has to be local and know how to capture the sort of stuff needed to parse into different sorts of media for different social media platforms.

[Mia]

I would look for work with a housecleaning company. They often have moms who must work around school schedules, it capitalizes on a skill most already have, and is likely flexible enough for you to continue to pursue higher paying employment whether that’s applying for jobs or trying to resuscitate your photography business.

While you’re in this phase of life those would be things that are a priority for me. Good luck! ETA: and I meant to say you can get a paycheck quickly to work on these debt payments.

[Author]

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