Failing Business: Check. 25k Credit Card Debt: Check.

[niftyg]

I started 'successfully' selling a product on Amazon and was doing great. I started up with credit cards, and still had a good chunk of debt laying behind me from previous failed endeavors. As the cash started to flow I was making more than I made at my job, and although saddled with debt, was living like a rockstar (in my mind). I couldn't stop. Restaurants, vacations you name it. My girlfriend loves to do this kind of thing and I couldn't say no even though it hurt me badly. I knew exactly what I was doing and felt awful about it. I knew if my business were to fail what kind of situation I might be left in.

Fast forward to present time it turns out my product was incredibly unreliable and I wasn't tracking defectives properly. The good to bad review ratio was probably 1:4. Sales sunk, new competitors with lower prices emerged. A niche that was high-priced and under-optimized had turned into race-to-the-bottom product that had better reviews than mine. Competition competition competition Returns returns returns.

I downsized from $1000/month rent to a $100/m rent 30ft trailer, and profits keep dwindling, now to the point where I am running out of time. With minimum payments shooting up and $5000 left on a high interest credit card, the clock is ticking loud and clear.

I've probably applied for over 20 jobs now, with not one call back. Career prospects are so dimly lit I can't get a job flipping burgers, and I have tried a variety of resume styles.. but a crappy part time job and all that debt.

I've lived my life living to pay off credit cards, just not to this extend. It's an endless cycle that never ends, whether I'm seemingly careful with my money, or careless. Should I go bankrupt? I don't even want credit anymore. No, that costs money too.

So here I stand, my last shot left, put in this position 100% by my own stupidity, and boy did saw it coming.

I don't know what I'm going to do yet.

I have been toying with the idea of hustle-of-the-month (in this case the 1000 dollars a week on odesk thread) but it is flavour or the month for 'quick money' after all. I'm sure it's far from saturated by now (copywriting the only real marketable skill I have, which I'm sure is most other people on this forum as well)

Maybe I should create a high-quality squeeze page selling my Amazon product and run Facebook and Google ads.

Maybe I should keep applying for jobs.

Maybe I should join the army and pay off my debt in two years (sigh)

I can't accomplish any work in this trailer living with my girlfriend (she works nights, always home, watching loud tv, people over smoking pot). I need my own space.. or is this just an excuse too?

At the same time of being a situation I don't wish on anyone, perhaps it's for the better. Maybe this is the only way I will learn.

High credit card debt, no job, town with virtually no employment.. and probably 150 units of my failing product left. I wish I had a fresh start. I feel my best bet to succeed is honestly to rebuild my life in every aspect, from a strict schedule to the people I see.

I'd love suggestions on what to do, but this has turned out to be more of a rant.

My biggest take away from this is that if you think that you have no time to work on a business working a full-time job, you're not going to have as much time as you think if you quit your job. If you have real dedication you will work on your business all the time even with a job, and if you don't, then you do not have real dedication and are not ready to go full time yet.

At least this has taught me that I still know I will keep trying until the day I die.

 

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[Vigilante]

Your situation is difficult. Nobody here though can say "yes, file bankruptcy" because that would be akin to dispelling legal advice. We're not qualified to weigh in on the depths of your situation. What I can tell you is that you can survive, no matter where you hit rock bottom. You will learn to breathe again, function again, and build again. Nothing is beyond hope. I have fallen all the way off the mountain and survived, and you can also. You still have a fighting spirit. Bankruptcy, if you go that route, is not an end. For some, it is a beginning. I would not focus at this point on how to sell a subpar product better. Focus on what to do from here. It's not about product, marketing or squeeze pages at this point. Your army idea is not a bad one. Do what it takes to get your head above water, and then navigate from there. Rethink everything. Focus today on today and tomorrow. Let the Fast Lane be there for you later, once life is stable again. For now, you need to simply breathe, and do something radical to change your position.

 

[Lex DeVille]

I have been toying with the idea of hustle-of-the-month (in this case the 1000 dollars a week on odesk thread) but it is flavour or the month for 'quick money' after all.

For now, you need to simply breathe, and do something radical to change your position.

If you can write copy, and it looks like you can, then the "flavour of the month" might be the right choice.

But if you assume it won't work, then you won't find out because you'll never try.

Any money is better than no money.

 

[niftyg]

Sorry if I am doubting you and it works. I've just seen so many times when a great, working idea gets posted, hundreds of people jump ship and saturate the market completely. Then ebooks get made and Warriors jump on.

I guess I feel no matter how great an idea looks, if it's made public it is sure to see an untimely demise.

Maybe I'm jaded.

 

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[Lex DeVille]

Sorry if I am doubting you and it works. I've just seen so many times when a great, working idea gets posted, hundreds of people jump ship and saturate the market completely. Then ebooks get made and Warriors jump on.

I guess I feel no matter how great an idea looks, if it's made public it is sure to see an untimely demise.

Maybe I'm jaded.

What I'm getting at is that Odesk isn't the market.

The techniques work on Odesk, but they also work on elance, craigslist, and in person whether used as copy, or used to sell yourself.

They work anywhere they're used.

Use your copywriting skills on your next resume, put on your Sunday best, and walk in and ask for the manager at the next place you apply.

Go in and tell him what's up and that you're down on your luck and ask him for a job.

If he doesn't have one, then ask who he knows that might have one.

If all else fails, put on a nice shirt and go to Express Employment.

I guarantee if you walk in there with a smile and nice clothes you'll walk out with a job.

May not be much, but it will buy you time.

 

[DeletedUser394]

This was tough to read.

Normally I don't care, but honestly hope you pull through.

Drop the girl maybe? ... doesn't seem healthy.

Any way, good luck man.

 

[IceCreamKid]

I couldn't stop. Restaurants, vacations you name it. My girlfriend loves to do this kind of thing and I couldn't say no even though it hurt me badly. I knew exactly what I was doing and felt awful about it. I knew if my business were to fail what kind of situation I might be left in.

I can't accomplish any work in this trailer living with my girlfriend (she works nights, always home, watching loud tv, people over smoking pot).

Honest question to ask yourself. You don't even have to discuss it on the forum. In what way does being with this girl help me move towards my goals? In what way does she hinder my personal growth and movement towards my goals?

What EXACTLY do I want from my life? Write it down and be super specific. A goal like, "I want to make $10k/mo profit" is more specific than, "I want to get rich."

Then after making that CLEAR list of what you want, ask yourself what do I have to do to get that? Where do I have to go? Who do I have to talk to? How do I go about achieving all of this? Then make a move. Who cares if you fail. Michael Jordan didn't win 100% of his games so I don't see why entrepreneurs expect every biz they start to succeed. It's insanity to me. Just keep making moves and eventually you'll take a step back and realize oh crap I actually built this.

Pause, take a step back and THINK things through. Your answers will rise to the surface when you are relaxed, not in a state of panic/fear/stress. Eliminate drama, distractions, and noise that come in the form social media/bad relationships/news/forums. Just try a 1 week break from all that stuff and you'll find much more mental clarity and you'll naturally figure out what to do instead of trying to force it.

If getting a job is required to get yourself back above water, go for it. There is no shame in an honest paycheck. If this is the option you decide to take, send me a PM and I'll give you some e-mail templates that will put you miles ahead of any other job applicant.

Good luck. It makes me sad when I see people struggling like that. Regardless, you will survive. Never forget that.

 

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[MJ DeMarco]

Hope you pull through and take with you some valuable lessons.
Thank you for sharing the trials on your journey.

 

[niftyg]

I love you guys. And I will take you up on that offer @IceCreamKid, a recent job has come up that seems right up my alley (marketing, brand development, content writing, ppc)

 

[Lex DeVille]

I love you guys. And I will take you up on that offer @IceCreamKid, a recent job has come up that seems right up my alley (marketing, brand development, content writing, ppc)

If you end up looking at Odesk let me know and I'll give you a small gig to get you going, and get feedback fast.

Once you have feedback things get a lot easier.

 

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[IceCreamKid]

If you end up looking at Odesk let me know and I'll give you a small gig to get you going, and get feedback fast.

Prepare to have an army of thousands of lurkers PMing you asking for a small gig. No lie, when I was a lot more active on this forum last year I got tons of weirdos coming out of the woodwork with unusual requests for money and employment. It was the most bizarre experience.

 

[Lex DeVille]

Prepare to have an army of thousands of lurkers PMing you asking for a small gig. No lie, when I was a lot more active on this forum last year I got tons of weirdos coming out of the woodwork with unusual requests for money and employment. It was the most bizarre experience.

@IceCreamKid

Reciprocation.

muahahahahaha

Jeez, don't you watch mafia movies?

 

[Bila]

It takes courage to write and share your story.
Wish you all the best and as others said, only up from there.

 

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[IceCreamKid]

Jeez, don't you watch mafia movies?

No need to watch mafia movies when I run my own mafia. I arranged the murder of humpty dumpty, you know.

 

[Esquire]

The solution is simple.

File a Chapter 7 bankruptcy.

It's your "Get out of debt free" card.

Use it.

That is what I would tell you to do if you walked into my law office.

$1500.00 in legal fees ... and just like that ... zero debt.

The alternative is ... struggle with out of control credit card debt ... 29% interest rates ... late fees ... over-the-limit fees ... etc. etc

90% of what you spend trying to pay it down will not make it to principal. You will be trapped in a cycle of never-ending debt.

You'll end up paying three to four times what you owe before it's all done.

That's nuts.

And no way to live.

$1500.00 ... and you are debt free.

That simple.

Wipe the slate clean.

*** Caveat: I just noticed you live in Canada. Not sure how the bankruptcy laws work there. But if you lived in the states ... that would be my advice.

 

[niftyg]

Its tricky because depending on your situation, in Canada they can make you pay a percent of what you owe (15-25) and will garnishee your wage to get it. Most of my credit cards are 13% interest. The high interest one is 23% So it's not THAT bad but bad enough to be really annoying. Id love a Canadian lawyer to weigh in on this.

 

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[Esquire]

Its tricky because depending on your situation, in Canada they can make you pay a percent of what you owe (15-25) and will garnishee your wage to get it. Most of my credit cards are 13% interest. The high interest one is 23% So it's not THAT bad but bad enough to be really annoying. Id love a Canadian lawyer to weigh in on this.

Well ... by my math ... 15% - 25% of the principal ... sure as heck beats 100% of the principal plus 23% APR.

These two options ... pay a little vs. pay a lot ... are not even close on the "annoying" scale.

I'd take Option #1.

 

[JasonR]

If you have real dedication you will work on your business all the time even with a job, and if you don't, then you do not have real dedication and are not ready to go full time yet.

BAM. I love this. If new entrepreneurs can take one thing away from this thread, it's THIS.

Thank you for sharing your story.

Remember, failure is only feedback. Learn from your mistakes.

If you push through, you'll laugh at this situation, and say, wow I overcame this. And guess what, I didn't die. They couldn't take my birthday away.

You'll get through this, and you'll be a better man for it.

Btw, if your GF is pressing you to make bad decisions, then ditch her (easier said than done, I know).

Don't tolerate anyone who isn't supportive of you and your goals.

Good for you for getting uncomfortable and moving into a trailer.

Once you get out of your "mess" - you just need to start working on the right things.

Good luck.

 

[Lex DeVille]

Well ... by my math ... 15% - 25% of the principal ... sure as heck beats 100% of the principal plus 23% APR.

These two options ... pay a little vs. pay a lot ... are not even close on the "annoying" scale.

I'd take Option #1.

Have you ever seen PayPal earnings garnished?

I used to work in a collections law office, but I don't recall ever seeing that happen.

 

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[Esquire]

Have you ever seen PayPal earnings garnished?

I used to work in a collections law office, but I don't recall ever seeing that happen.

No ... can't say I've ever seen that.

A creditor "could" get a "charging lien" ... if you are running an incorporated business ... ordering the business owner to fork over a percentage of profits ... but that is about as close as you would likely get to something like that.

Typically a state marshal would just hunt you down via the department of labor to see where you are working and serve a wage garnishment notice direct on the employer. If you are self-employed ... it is much harder for creditors to collect a debt ... particularly if you keep your money in out-of-state banks.

Not impossible, mind you ... but much harder.

 

[ZCP]

To get out of a hole, STOP DIGGING!

 

[randomnumber314]

To get out of a hole, STOP DIGGING!

No, that just stops making the hole deeper.

Great OP. Good to show those who are on the edges that failures happen, and those who have failed have great advice: "get up, keep going."

It's impossible for anyone here to know whether the girl is good/bad. Do as the others have said and assess it objectively if possible--if not, ask your most honest friends.

 

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[MidLifeStallion]

First of all, I agree with GrumpyCat. Dump the girl. No way sitting around smoking pot while listening to loud music til 2am helps in ANY WAY!!. Also, once she is gone you have less luggage to carry into the future.

Second, Vigilante is right. You have to rethink EVERYTHING. Your in a place right now that I like to call, "Looking up at Zero". It will take you months to get back to even. Last time I was "Looking up at Zero" it took me 18 months and a move half way across the country to get back to zero.

The army idea isn't the worst idea. It will get you away from the albatross you call a girlfriend, it will allow you to breath again, and will help in getting rid of that CC debt. Also you have free time in the evenings to work on your ideas. Only problem is you get shot at when your in the Army.

I've been Below Zero a handful of times so far and I always eventually make it back on top. Not going to feed you some horseshit line like, "what doesn't kill us, makes us stronger." But I will say at least your thinking about it and your looking for answers. That means you haven't given up yet, that how I know you will, eventually, get back above zero.

 

[randomnumber314]

Only problem is you get shot at when your in the Army.

Not if you choose the right job. The problem with the Army option is the years you pledge to someone else's cause. Remember, too, he's Canadian, not American.

The takeaway from the respondents here is simple: you can better your situation if you're willing to hustle.

That's all it takes. Find people willing to pay a ton for something you can outsource for a few. Do the hard middle-man work, make some money, get back on your feet.

@benhebert care to offer some advice on how to get cash when needed?

 

[DeletedUser394]

The reserves is an option.

You go through basic, but 'work' part time. Good way to still get that discipline with no real long term commitment if you don't want it to be a long term thing.

Nobody shoots at you either.

 

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[niftyg]

Well as far as the Forces are concerned they are minimum 2 years. Starts at around 2800/month first year 3400 second year, 4000 3rd year.

One thing that worries me about getting a job or joining the military is this: isn't it the easy way out? maybe if I keep trying new techniques I can hustle money. Or just keep digging myself deeper.

I really appreciate all the responses I have got from you guys. Regarding the girl I really do feel our personality types don't work, but you know how it is, easier said than done.

So many things to think about.. job, military or keep trying to hustle, pay off debt or bankruptcy, Hopefully I'll figure it all out soon.

 

[randomnumber314]

Use the words I used when I joined the military 13 years ago, "sorry baby, I gotta go." Yes, I said that. I was lame.

In all seriousness, that is the answer to many of your problems. Just be sure to use your time wisely. If they still offer bonuses for certain jobs, pick one of those. In any case choose a job that isn't front-line combat, because dying isn't fun. You can hustle in the military; most there have money they haven't had before, most spend 100% of their paycheck, the rest spend next month's paycheck today.

 

[Lex DeVille]

Use the words I used when I joined the military 13 years ago, "sorry baby, I gotta go." Yes, I said that. I was lame.

Not as lame as my words when I joined... "Please baby, don't leave me!!!"

In all seriousness, that is the answer to many of your problems. Just be sure to use your time wisely. If they still offer bonuses for certain jobs, pick one of those. In any case choose a job that isn't front-line combat, because dying isn't fun. You can hustle in the military; most there have money they haven't had before, most spend 100% of their paycheck, the rest spend next month's paycheck today.

The military was by far one of the best long-term decisions I've ever made. So thankful I went that route...

- $0.00 spent in rent for several years
- Full-time pay with no utility bills
- Lots of opportunities for making extra money
- Lots of life experience in a very short time
- Makes you feel like a badass and you develop strong will
- So much free training both online & offline you'll shit yourself
- Opportunities to meet unique people from everywhere
- A bazillion networking opportunities
- GI Bill = FREE Rent money for 3 years for going to school after you're out...
- Lifelong friendships
- Travel
- Airplanes, guns, explosives, and TOP SECRET clearance! WOOT!

I wonder where I'd be right now if I hadn't joined. Probably not where I am.

After you get all that experience, then just follow me! Marry an Airman and live as a military spouse while enjoying all the same benefits minus the workload plus all the time in the world to work on failing at businesses with no risk!

 

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[JonnyC]

@niftyg ─ I'm sorry to hear that things are rough for you right now. I think it's safe to assume that a majority of us can relate in some way or another.

I wanted to throw in my $0.02CAD as I served in the Canadian Forces as an infanteer for 4 years. The minimum contract you serve will vary depending on the MOC you go for. They determine your eligibility for different MOCs based on your aptitude test score when you apply, so you should qualify for a lot of jobs if you tested well in school. If not, they offer study materials and stuff to get ready I think.

Picking your MOC is likely the single most important decision you make, so make it very carefully.

Combat arms (infantry, tankers, artillery, etc)
Pros
-Tight brotherhood, lifelong friends
-Can have some pretty cool experiences in terms of exercises and deployments
-Will really develop a strong work ethic/grit in you
-Learn how to handle and shoot all kinds of weapons, drive different vehicles, small unit tactics, etc etc
-Lots of down time in garrison (may be con if you bore easily/can't keep yourself busy). Time for reading/learning, working out, etc

Cons
-You feel pretty expendable/interchangeable often
-Not many white collar/industry specific transferable skills (your resume will be full of intangibles like Leadership and Work ethic)
-Lack of control over your life, you give up 90% of your decision making power
-Majority of travel you will do is to shitty training areas, unless you're deploying

If you just want to make some money, travel the world, and "get back to zero" ─ I'd really recommend going Navy. My buddy (8 years infantry) just re-badged to Navy. Tons of international travel and stops at different ports, you get bonus pay when abroad apparently, and I think some of it is tax-free (check to make sure).

If you want to learn a specific trade (mechanic, radar tech, etc), then you should go for your specific MOC in any branch.

If you want a degree and career, test super high and go to school on the military's dime, do your 5+ years after the degree.

If you want to be a warrior/grunt, go combat arms.

Hope this helps with your decision!

 

[Hackdroot]

Been in a similar position. My advice:

Immediately call all your credit card companies and work with them to not only freeze your accounts, but negotiate a lower interest rate and payment. This will not only slow the bleeding that they are causing, but will prevent you from continuing to use them for now. If you don't have the cash to start another venture, you have to find a way to come up with the cash to fund it. No more credit. Destroy the cards. When you no longer have that option, you'll get more creative coming up with ways to earn money, rather than spend credit.

A bankruptcy on your credit will have long lasting effects on your ability to get a job, get future credit, etc. Don't take it lightly. Call around and see how much a consultation from a bankruptcy attorney will cost you. Be wary of 'free consultations', and lawyers who paint a rosy picture of it. Get the facts and use it as a last resort. Plenty of people pull out of your situation without playing that card, but if you need it, it's nice to know the facts.

Although dumping someone who is not on the same page as you can be beneficial in the long run, not sure if adding lonliness to your situation will help you through this. Could make things worse and lead to further depression. Focus on fixing your own habits and resolving your situation.

Good luck.