Evicted and Owing $12,000: Navigating Debt Snowball with a Judgment

The Debt Snowball Dilemma

• 📌 A caller is facing a $12,000 debt to a former apartment complex after an eviction, which is listed as the sixth debt in her debt snowball plan.
• 💡 The eviction occurred due to a job loss from a medical complication, but she has since found new employment and a new rental.
• ⚠️ The caller's ex-boyfriend was a co-applicant on the lease and lives in another state, prompting concern about how the outstanding debt will affect him.

Understanding the Judgment

• ⚖️ The host explains that the ex-boyfriend already has a judgment against him, meaning the damage to his credit has largely been done.
• 🎯 Whether the debt is paid off or not, the judgment will appear on his credit report, potentially impacting his ability to secure future leases.
• 🔑 The primary focus should remain on the caller's financial recovery, as the ex-boyfriend's situation is already compromised.

Total Debt and Origins

• 📊 The caller's total debt is approximately $53,000, including $16,000 in credit card debt and personal loans.
• 🚗 A significant portion of the debt ($14,000) is from a car that was wrecked without insurance, and another $12,000 is owed to the apartment complex.
• 📉 The caller acknowledges that her current financial situation, including the car insurance lapse and accumulated debts, stems from past irresponsibility and a recent medical issue that impacted her mobile dog grooming business.

Strategies for Financial Recovery

• 🚀 The recommended approach is to strictly follow the debt snowball method, listing debts from smallest to largest and attacking them aggressively.
• 💰 The caller, who earns around $42,000 annually as a dog groomer, is encouraged to work more, including picking up extra shifts and potentially additional work like DoorDash, to accelerate debt repayment.
• 👨‍👩‍👧‍👦 The host emphasizes that both the caller and her fiancé, who is currently unable to work due to a motorcycle wreck, need to prioritize working and earning money, especially with a three-year-old child, to overcome their financial challenges.
• 🗓️ The couple's wedding plans are on hold until they are no longer broke, highlighting the urgency of their financial situation.