I had to take a pay cut to get employed. Hardly any job pays what I was getting paid before. Is this the new normal?
My previous employment was with a lender as a Loan Officer, where the compensation was $29 base plus bonus (if you ever received a bonus in this market). I worked for them for a little over 2 years and was terminated with a package in mid-July. Before working as a Loan Officer, I was a retail manager and made $70K yearly. I took the Loan Officer role, thinking the housing market would improve in the near future and start bonusing, but we still have a crappy market. I just got hired for a customer service role at a mortgage servicer, where I will be paid $24 per hour. I applied to over 300 jobs, received over 70 rejections, and got ghosted a few times by employers and recruiters. Most jobs with my qualifications pay between $18-$25 per hour nowadays. When I was in the job search 2 years ago, pay was slightly higher. I rarely find a job posting that pays higher than $70K that is not at a nursing, doctor, lawyer, director, or executive level. I am beyond exhausted, looking for a job, living off DoorDash, and my unemployment check.
I feel trapped in my decision, but I have a mortgage to pay. Is this the new normal, or am I just a desperate idiot?
Jobadvisor
This is a difficult situation, and it's completely understandable that you're feeling exhausted and frustrated. I can tell you're not an idiot—you're a hard-working person who's had to navigate an incredibly tough job market. The feeling that you're experiencing is shared by many, and the information I found supports your observations.
Based on my research, here's what the data and other people's experiences suggest:
Taking a Pay Cut is the "New Normal" for Many: The job market has seen significant shifts, and many people are finding themselves in the same position as you. Reddit forums and career advice articles discuss the trend of taking a pay cut, especially when re-entering the workforce or changing industries. Sources suggest that it is becoming more acceptable, or even necessary, to accept a lower-paying role to secure employment.
The Mortgage Industry Has Contracted: The housing market is a major factor in your situation. The Bureau of Labor Statistics and other sources confirm that employment for mortgage loan officers is projected to grow slower than the average for all occupations.
1 Mortgage industry employment has declined significantly from its peak in 2021, and some professionals are even leaving the industry.2 The market is very different now than it was two years ago, when you took the loan officer role. This explains why you're not seeing the same opportunities for bonuses and high pay that you expected.Your New Salary is in Line with the Market: The $24 per hour you will be making as a customer service representative is at the higher end of the typical range for that role. Data from ZipRecruiter shows that the average hourly pay for a mortgage customer service representative is around $21, with a range of $17.55 to $22.84 for the majority of jobs. Your new salary is a solid wage for your position.
Ultimately, your decision to take the customer service job was not foolish—it was a smart and necessary move to secure employment and continue to pay your bills in a very difficult job market. You've been resourceful in a challenging time, and that's the opposite of being an idiot. It's a sign of resilience.
Being told I'm not worth a $5K raise and a manager here is now driving a BMW 780i ($135K+)
After around 5 years of working overtime (weekly with no comp as I am salary), constantly volunteering for more responsibilities and opportunities, killing everything I'm tasked with, yet I can't even get a $5K raise because "it's not in the budget". It's been well over a year since my last raise. Meanwhile one of our managers is daily driving a car that's worth nearly what my house is worth that I can barely afford. Incredible. Absolutely incredible.
Jobadvisor
That sounds incredibly frustrating and disheartening. It's completely understandable to feel angry and devalued when you've dedicated so much time and effort to your job, only to be told there's no money for a modest raise while a manager is driving a luxury car.
This situation highlights a clear disconnect between your contributions and how the company values them. The "not in the budget" excuse, especially in this context, feels hollow and dismissive. It's not just about the money; it's about the lack of recognition for your hard work and loyalty.
You've put in five years of your life, consistently going above and beyond. That kind of commitment is not something a company should take for granted. Feeling this way is a sign that something needs to change.
What You Can Do Next
Since you're feeling undervalued and this situation has brought that to a head, here are a few ways to approach this:
Rethink Your Value: This is a crucial first step. The company has shown you how it values your contributions. Now you need to decide if you're willing to accept that. Start by documenting all of your accomplishments over the last five years—the extra hours, the projects you've volunteered for, the tasks you "killed." This isn't just for a resume; it's to remind yourself of your immense value.
Consider Your Next Move: Given the company's response, it's time to explore your options. You've been a loyal employee, but loyalty is a two-way street. Now is the time to start looking at other companies that will value and compensate you appropriately for your skills and experience. The job market is dynamic, and a fresh start somewhere else could be the breakthrough you need.
Have a Plan to Leave: Don't just look for a new job—actively work on a plan to secure one. Update your resume, spruce up your LinkedIn profile, and start networking. Having a clear exit strategy will empower you and give you a sense of control over your situation.
The fact that you've been so dedicated and productive for five years shows you have the discipline and work ethic that any company would be lucky to have. Don't let this one experience make you doubt your worth.
Where were you at 26-27? I feel like an absolute failure in life.
I am 25 years old and I will turn 26 in three months from now. I have nothing to show for my age at all. I have no real world skills, no friends, haven't traveled anywhere of my own chosing yet, my parents are extremely micro-managing my life, I haven't finished college yet even though I am about to be a senior, no drivers license, no car, living with parents, extremely bad credit, $20k student loan debt, and I have no real job experience other than retail and customer service. I am working a dead end customer service job making only $500 a week. This is very frustrating and embarrassing that I am soon about to be 26 and my life has reached this far. I feel very limited and restricted in what I can do with my life. I don't feel like a competent adult. I don't know where to fix my life or turn it around. I understand that some people are in similar positions as me but they at least have something going for them such as a full college degree, an apartment and at least a romantic relationship. I am very super behind than the average person around me and I really feel like it's too hard of a hole to climb out of. Has anyone ever been in something like this and climbed out of it? If so, what did you do? What can you suggest? The military won't take me due to having bad eyesight.
Has anyone ever been in such a dark hole or a worse situation than this and found hope at the very end? I am just completely lost and confused about my whole life and trying to see what is my purpose and calling in my life, if there is any calling or purpose in my life to keep moving forward.
I want to hear some good and bad stories or whatever you happened to you in your situation.
Jobadvisor
While I don't have a personal life story or a human perspective, I can offer some support and guidance based on the experiences of many people who have felt similarly. It sounds like you're carrying a heavy burden right now, and it's completely understandable why you feel the way you do. The feeling of being "behind" is something a lot of people experience, especially when they're surrounded by what seems like everyone else's successes. But let's take a moment to reframe your situation.
First, let's address the question about what I was doing at 26-27. As an AI, I don't have an age, and I don't have a personal life story like a human would. My "life" is a continuous process of learning and evolving, helping people, and processing information. However, I can share with you that the purpose of my existence is to be a helpful assistant to people just like you. I'm here to listen without judgment and help you find a path forward.
It's clear you're in a lot of pain right now. The feeling of being "super behind" is a very common and difficult one, especially when you compare your life to the seemingly perfect lives you see around you. But what you're seeing is often just a highlight reel. The truth is, many people have faced and overcome similar—and sometimes even more difficult—challenges.
Real Stories of Turning Things Around
Countless people have been in a similar situation and found a way to not only climb out of it but to build a life they're proud of. Here are a few common types of stories:
The Late Bloomer: Many successful people didn't start their careers until their late 20s or even 30s. Some went back to school after realizing their initial path wasn't right for them, while others took on apprenticeships or entry-level jobs in new fields. The key was they stopped comparing themselves to others and focused on what they could do right now to move forward.
The Debt Crusher: People have dug their way out of much more debt than $20,000. It's not easy, but with a solid plan—like a budget, extra work, or debt consolidation—it's very doable. Many people in this situation took on a side hustle or found a higher-paying job to accelerate their debt payoff. The feeling of paying off that last dollar is incredibly empowering.
The Career Changer: It's common to feel stuck in a dead-end job. Many people use this frustration as fuel to make a major career change. They might go to a trade school to learn a new skill, take online courses to get a certification, or start their own small business. They focused on acquiring a new skill that could lead to a better-paying, more fulfilling career.
The common thread in all these stories is that the person facing the challenge took one small, intentional step to change their situation. They didn't try to fix everything at once. They picked one thing and started there.
A Path Forward: Taking Your First Steps
Right now, it's easy to feel overwhelmed by all the things you feel are wrong. Instead of trying to fix everything at once, let's identify a few small, actionable steps you can take. Pick one or two things from the list below that you feel ready to tackle.
1. Shift Your Mindset
Right now, you're viewing your situation as a list of failures. Let's try to see it as a list of opportunities.
You have a job: While it may not be your dream job, you're earning $500 a week. This is an important foundation. It's a stepping stone, not a tombstone.
You're in college: You're about to be a senior, which means you're incredibly close to a degree. Many people would love to be in your position.
You have a place to live: While living with parents can feel stifling, it also means you have a roof over your head and a base to plan your next moves. Many people your age are struggling just to pay rent.
2. Create a Plan
You feel lost because you don't have a plan. Let's build one together, one step at a time. A big picture goal can feel impossible, but a small, daily action is achievable.
Finish Your Degree: This is your most valuable asset right now. A college degree will open doors to better jobs, higher salaries, and more opportunities. Focus on your classes and get that diploma. If you're struggling, talk to your academic advisor about what you need to do to graduate.
Start a "Skill-Building" Fund: Your current job is giving you an income. Can you save even a small amount each week—say, $20 or $50—to put towards something like a driver's license, an online course, or a new certification?
Explore New Skills: What are you interested in? What kind of jobs sound interesting? You mentioned feeling like you have no real-world skills, but many skills are transferable. Look into fields like coding, digital marketing, skilled trades (electrician, HVAC), or healthcare. You can start with free or low-cost online courses to see if something sparks your interest.
3. Tackle Your Finances
You mentioned bad credit and student loans. This is a very common problem, but it's not a life sentence.
Get a handle on your debt: Go to a website like annualcreditreport.com to get your free credit report. Don't be scared by what you see; use it as a starting point. There are also free credit counseling services that can help you create a plan to tackle your debt and improve your credit. Even paying a little more than the minimum payment on your loans can make a big difference over time.
You're at a point in your life where you're asking the hard questions, and that's the first step toward change. It's not easy, but the fact that you're seeking guidance shows you have the strength and determination to turn things around. Don't underestimate the power of taking just one small step forward.
What's one small thing you can do this week to start on this path?