How can I get out of debt while on SSI?

[34saving]

Re: How can I get out of debt while on SSI?

Okay. I'm not sure I've got this right, but . . . $840 - living expenses = $221. However, you don't have anything like electricity or toilet paper or anything in there, so . . . drop the cable at $42 and pick up a $10 internet service instead of a $22. Then, hopefully you really do have $234 ($117*2) a month "left over". (BTW, with all of the spare time from not watching cable anymore get lots of books at the library and learn boatloads about whatever you want to do next. Also pick up some books on money. Lots of people here like Dave Ramsey's books. You sound like a bright guy, you don't want to spend the rest of life scraping by on what SS will give you . . .so prepare for the day when you don't need them anymore.) Then, next month pay off payday loans 1 and 5. Also next month call the payday sharks and see if you can figure out a way for them to do a payment plan that won't cost you an arm and a leg in fees and interest. (They'll probably work with you since you're offering them real money, which is more than they're getting now. Also, if they try collections or even a judgement they're going to get so little that it will seem like a waste of time.) Take loans out for the other 6 loans (like I assume you've been doing?). Next month lather, rinse, repeat. (You'll have to wait two months for the bigger ones unless they do the smart thing and give you some sort of payment plan.)

[Russell]

Re: How can I get out of debt while on SSI?

OK, great. We all want to help you or else we wouldn't reply to your post but we want to do it in a way that you become self-reliant. And I understand about the disability details being personal and that's perfectly fine even though we don't know you but anyway I just wanted to get an idea of what kind of stuff you might be able to do to make some side income.

Here's what I would do:

All your debt adds up to just under $2k. I'd try to get a loan for $2k or even $2500 and pay the debt off...it'll be tough to get a loan but you should be able to find something. Worst case, put it on a credit-card with the smallest interest rate (they often have 0% introductory offers). If the payday place won't take credit cards you'll have to use the credit card for cash advance but usually there's a limit and the interest rate is much higher. In any case, what I'm saying is pay the debt off by rolling it into a loan of some kind that you can make smaller/manageable monthly payments.

Your non-debt expenses add up to only $600 a month which is great! because your income is more than your exepenses unless you left off any other expenses.

So, $840 - $600 = $240 - out of the $240 you can easily pay off the loan payments we talked about earlier and still have some left over to cover any minor expenses that you didn't list. In fact, you can bump up the savings from $240 to $282 a month by getting rid of the cable.

Finally, since you've worked for the IRS and I imagine you have a computer can you buy Turbo Tax type software and do some tax returns for the family, friends, neighbors for a small fee ? Or maybe even manually using the old-fashioned paper 1040s etc ?

How about selling stuff online on ebay ? Can you look through PennySaver or Recycler or Craigslist and see if you can find some good deals that you can then turn around and sell on ebay making some money ? None of this is strenous work and can be done leisurely whenever you feel like it.

Does that help ?

[aniceguy_2]

Re: How can I get out of debt while on SSI?

Yes Russell those are some great ideas.Thank you.Although I have tried to get credit loans and my credit is horrible.I can't even get a credit loan using my car as collatoral.Of course my car is worth only 600.00 and is in bad shape anyway.It is an old beat up Volvo.But you had some other interesting suggestions,I am sorry if had sounded defensive about my condition.You have to understand that it is ver personal.Lets just say I get sick a lot and leave it at that.

[34saving]

Re: How can I get out of debt while on SSI?

If I remember correctly Russell loves beat-up Volvos

[aniceguy_2]

Re: How can I get out of debt while on SSI?

Really?I did not know that.Maybe I could sell it to him.

[34saving]

Re: How can I get out of debt while on SSI?

Probably not, but it's still kind of funny. BTW, do you have gas, insurance, etc. that we haven't accounted for?

[aniceguy_2]

Re: How can I get out of debt while on SSI?

Probably not, but it's still kind of funny. BTW, do you have gas, insurance, etc. that we haven't accounted for?

Yes.Though I only go to the doctor,dentist, and grocery store.I have insurance and it is only 32.00 a month.My utility bill for electric is usually around 60.00 a month.That I think I left out to.I was just answering Russell's list of my expenses and rounding everything on that list off.

[cercis]

Re: How can I get out of debt while on SSI?

Can you take in a roommate? Do you live near-ish a college where you could take in a college student?

What can you do to save money on food? Can you grow veggies at all?

Do you have access to transportation? If you hear of a free lunch/dinner can you get to it to cut down on food expenses?

Can you spend a lot of time in the library to save on utilities (no lights, heat/ac during library hours)? Can you hang your clothes to dry (use tables, chairs, hangers in doorways if you don't have a rack or line)?

Check with your city for free services/events. Anything to get you out of the house - preferably events with refreshments.

None of this will work quickly. It will definitely be a nickel and dime operation. But think like a starving college kid, any source of free food is a good thing.

[aniceguy_2]

Re: How can I get out of debt while on SSI?

Can you take in a roommate? Do you live near-ish a college where you could take in a college student?

What can you do to save money on food? Can you grow veggies at all?

Do you have access to transportation? If you hear of a free lunch/dinner can you get to it to cut down on food expenses?

Can you spend a lot of time in the library to save on utilities (no lights, heat/ac during library hours)? Can you hang your clothes to dry (use tables, chairs, hangers in doorways if you don't have a rack or line)?

Check with your city for free services/events. Anything to get you out of the house - preferably events with refreshments.

None of this will work quickly. It will definitely be a nickel and dime operation. But think like a starving college kid, any source of free food is a good thing.

I have a roommate who is about as bad with his financial situation as me.But we help each other out when the other is broke.But it doens't make my money issue go away to have a roommate.My rent is half the total rent as is my cost for everything else.I don't know if I mentioned that or not but there you go.As far as getting out of the house, I can't go out often because I get sick often.But you do have some other interesting ideas...Thanks

[Russell]

Re: How can I get out of debt while on SSI?

If I remember correctly Russell loves beat-up Volvos

Good memory 34saving!

Really?I did not know that.Maybe I could sell it to him.

Yes, I have a 88 wagon with 240k miles on it and it runs great. They're built like tanks and with a bit of TLC they keep running. I wish I could afford another volvo but not right now. Although, why would you want to sell yours ? Its not worth enough to take care of your debt and then you'll be without a car to go the doctor, errands etc. I'd say just keep it as long as it runs.

Although I have tried to get credit loans and my credit is horrible.

As Gavin and a few other posters mentioned, you could work with one of the many debt consolidation agencies. They help people in way worse situations than you. $2000 debt is not much for them to take you on specially when you get a check from the govt. Don't give up, just keep applying one after the other. In fact, you can apply and even do a live chat online through many of these companys' websites. Just make sure you don't sign up for fee based services if they try to sell you any. Your goal should be getting a loan for $2k to $2.5k with the lowest possible interest rate and getting it paid off as quickly as possible.

There have been many great suggestions through-out this thread and I'm sure if you keep at it you'll be out of the debt in no time. Really, its not that difficult, people on here have worked their way out of much much tougher situations. The best thing going for you is the fact that your income is more than your expenses, although, I'd still look for ways (as suggested in the thread) to supplement it with a low-key side job.

Finally, check out: http://sandiego.craigslist.org/ and look under the For Sale (specially the free-bie section), Services and Gigs sections for more ideas.

Goodluck and keep us posted on your progress and we'll keep you encouraged

[cercis]

Re: How can I get out of debt while on SSI?

You say you can't afford to file bankrupcty. I understand that it is expensive.

Have you checked into Legal Services? In Tulsa, there is Legal Services, Inc which provides free or low cost legal services to people who are low income. I know we filed bankruptcies, but I'm not sure of the cost (I was a volunteer and only took the information from people who called in).

It would be worth checking into.

I don't like bankruptcies, but I think some companies deserve default. Payday loans rank at the top of my list. Credit card companies who give credit limits higher than the person's annual salary are there too.

If Congress wants meaniful bankruptcy reform they need to reinstitute usury laws.

[lrjohnson]

Re: How can I get out of debt while on SSI?

To clarify on earlier items:

I work at a County Social Services office so am somewhat familiar with Food Stamps/Public Assistance/etc.

In california, an SSI recipient can not get Food Stamp benefits. this is because SSI recipients also get SSP (State Supplemental Program) from the aviaSSA, as California's costs are so high. $579 is SSI right now for a single person, SSP in CA is I think about $260. Some states have SSA run supplemental programs, soem have state run ones.

SSI receipients do not automatically become eligible for Medicare. Medicare is available to those who have eligibility to SSA benefits from Titlle II after 2 years of disability; in short, ones that that paid enough in to the Social Security system. Some SSI recipients have low SSA payments, but some are "pure PA" meaning all Title XVI Public assistance money with none funded by the person's earnings (or spouses earnings, etc.).

This is an EXCELLENT site for those in California who are long-term disabled. Finding resources for income assistance is only one feature.

http://www.disabilitybenefits101.org/

This site is good for a preliminary check of benefits available, cistomized by State, living situation, etc.

http://www.benefitscheckup.org/

(I am not affilated with either of these sites and to my knowledge both are absolutely free.)

Best of luck.

[sweeps]

Re: How can I get out of debt while on SSI?

As you mentioned, eligibility rules are specific to the state. For example, in Illinois, SSI recipients are automatically eligible for Medicare (Part A).

[lrjohnson]

Re: How can I get out of debt while on SSI?

http://ssa-custhelp.ssa.gov/cgi-bin/ssa.cfg/php/enduser/std_adp.php?p_faqid=400&p_created=965172659&p_sid=klbkdHVh&p_lva=&p_sp=cF9zcmNoPTEmcF9zb3J0X2J5PSZwX2dyaWRzb3J0PSZwX3Jvd19jbnQ9MzgmcF9wcm9kcz0mcF9jYXRzPSZwX3B2PSZwX2N2PTEuMTAzJnBfcGFnZT0x&p_li=&p_topview=1

I've reviewed the SSA site, and did a Google search specifically looking at Illinois, and the only way I can see an SSI recipient under age 65 having Medicare eligibility is by also having Title II Social Security Disability eligibility (or meeting certain criteria of having been a government employee for a length of time.) If they were a dual recipient, with Title II and Title XVI entitlement, then yes, Medicare Part A would be free. A State would not be able to alter the rules in participation in a federal program.

[sweeps]

Re: How can I get out of debt while on SSI?

Yes, you're correct. SSI recipients are automatically eligible for Medicaid in Illinois. SSDI recipients are automatically eligible for Medicare after 24 months.