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No. of Recommendations: 6
Listen to Deltaone, thats good advice.

I'm a lender on Prosper.com and many, many of the folks who I've seen there who are in debt trouble spell debt C-A-R. If there is a gap between your car and your income, you need to eliminate that gap. Are you upside-down on the car loan or not? (Upside-down means "the payoff quote for my car loan is more than the probable resale value of my car"). If not, sell the car and buy a beater. A $2,000 used car will still get you from point A to point B, and it will drop hundreds from your strained monthly budget (and cut probably $10k+ off your $46k debt -- am I guessing right?).

If absolutely necessary, and you are upside-down on the car, you can sell the car, buy a beater, and get a loan for the credit union from the difference. They aren't going to be maximally happy with this, because you will likely not have sufficient equity in the beater to secure the car loan, but even this gets you much closer to positive cash flow.

So now you've got positive cash flow, what are you going to do with it? The first thing is to establish an emergency fund. It sounds like your cupboard is bare, and one setback will send you running for the cards. So get together $1,000 for life's little mishaps ASAP. Then, I would personally split the free cash flow between paying down your credit cards (highest APR first) and increasing your savings so that you'll be able to have some freedom for the more important things in life (see below regarding some important things). The minimum payments look high now, I know, but even if you think you can't afford to pay them you can't afford to pay ONLY them! Thats a recipe for continued indebtedness for decades, at the cost of probably close to $100,000.

This being said: debt management is important. Money is important. Credit is important. Your health is MORE important than any of these. After you've fixed your "I spend more money than I make" problem, you can buy your way out of debt, you can buy your way out of having no savings, you can even buy your way out of poor credit. You can't buy your way out of having no teeth! If dental work is a need rather than a want *get it done*. If its a want (I *want* to get braces again because my smile is crooked -- not doing it at the moment because I've got a major expense coming down the pike that gets priority), then you can put it off a little while longer.
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