Single Mom in Debt - Need Advice
I’m 30 years old. I have about 10k in credit card debt. Owe 18k on my car payment. And I purchased a house in 2024 for 330k. My income is 75k per year.
Since being single, I’m in the negatives after my bills are paid. My mortgage is $3200 and it feels like I’m drowning. My take home after taxes is $4800. I receive $1000 in child support but it doesn’t help too much as I have 2 children in daycare, plus the expenses on essentials. The father of my children is on the title of the house but not the loan and he will not remove his name unless I buy him out.
While I’m already applying to numerous jobs in hopes of getting something that pays better, at least 100k, I’m considering converting my garage into a studio to rent it out.
I was quoted 21k including labor and materials.
Is this a good idea? I was thinking of taking out a loan but my credit score has decreased. I was also considering borrowing money from my dad in case I did want to go this route. I could rent the studio out for $1000-$1300 which would help me only need to pay $1900-$2200 in mortgage.
I’ve also been considering renting out the rooms, possibly $750-$1000 per room to cover the mortgage and me just renting out an apartment for 2k with my children.
I’ve thought about selling but houses are cheaper now than when I initially purchased. Comps in my area are roughly 20k-50k less than what I purchased my home for. Although I did do updates, I know it doesn’t have that type of equity.
I don’t receive any type of state assistance or anything. I understand that times are rough for a lot of people in today’s economy. What can I do to help myself get back on track?
Bills Include:
Mortgage: $3200
Daycare: $850
Car Loan: $450
Car Insurance: $225
Power: $250
Water: $125
Groceries: $450 (family of 5)
WiFi: $100
Phone Bill: $150
Gas: $200
Credit Cards: $600
Total: $6,600 not including costs for basic essentials
Note: I’m a remote worker in HR. I recently had to put my 1 year old in daycare so that added another unforeseen expense. My job duties doubled to tripled with my team getting riffed and it was nearly impossible for me to do my job and care for her at the same time. My pay has not been increased since acquiring a heavier workload which is also why I’m seeking other opportunities.