Dave Ramsey says: What do you do when you hit rock bottom?

Dear Dave,

I’m 20-years old, and I’m in a bad spot.

I’ve been a jerk for the last year, not listening to my parents about anything. Now, I’’ve got over $10,000 in debt from running up bills on credit cards and writing some bad checks.

Two weeks ago, I also lost my job and totaled my car. I’m about to lose my apartment, too, because I don’t have the money for rent.

A friend of mine said I could stay with him for a while, but I’m really scared. My parents say I created this situation all by myself, and I need to figure out a solution all by myself.

Would you please give me some advice? I’m in a bad spot and I don’t even know where to start.

What to do when you’re in a bad spot financially

Dear Justin,

It sounds like you’re about as close to rock bottom as a person can get. I know it’s a scary situation, especially for a young person.

I’ve done stupid stuff, too. And the stupid things I did had lots more zeroes on the end than you’re looking at right now.

So, I’ve got some good news for you. Although you’re in a bad spot now, there’s hope!

The simple fact that you’re looking for help, and have realized the way you’ve been living is stupid, means you want to change. That’s a good thing.

Still, when you do stupid things, you’ve got to pay what I call “stupid tax.” I’m talking about the consequences of your actions.

It sounds like you’re going to have get two or three jobs, and find a really cheap car that will get you around for a while.

If you do this for maybe 12 to 18 months, and live on a very strict monthly budget, you’ll probably be able to pay off all that stupid tax you’ve accumulated.

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