A couple have hinted at it already but I'll just come out and say it. When you are just starting out is not the time to be spending more than what you make. The mistake most people make is to think "I deserve this". Bull! Don't believe the hype that advertisers sell you! You seem like a resourcefull guy and willing to sacrifice for your economic sins. But I'll warn you now, learn from this mistake. You are young and it is easier to correct these errors now than later in life when you have a house, wife and kids. I truely feel for the people who have had to go home to their spouse and explain that the way of life they had is about to end. But a wise man once told me, "neither a lender nor borrower be". When you lend you gamble on that money being paid back to you. There is never a 100% guarentee, ask the investors in Madoff. When you borrow, someone is making a bet you will be able to repay that loan. The cost of the risk is the interest you are charged. Just last week I had to explain to my GF how her good deal on a $5000 vehicle was not as good as she thought. Simply because by the end of the loan she was paying $7000 for the vehicle, not $5000. But that is the cost of a bad credit history and failure to read the loan and ask the right questions. They sold her on the $120 a month payment, not the five years that she'd be making that payment. I do have one question. If your parents are declaring bankrupcy why are you? Is your debt tied to theirs or is it a matter of the money you should have been saving for rent was going for toys because you lived at home? I hope you get it right, being financially responsible isn't easy but the reward is worth it.