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Knee deep in CC debt, I don't know what to do..

Moderator Emerita

Re: Knee deep in CC debt, I don't know what to do..


WallyxD wrote:

Hi guys, so, as you can tell by my subject, I have A TON of credit card debt, and I'm getting stressed.  At first, I thought, okay cool, I can handle it, but now, I'm essentially a mess.

 

I'll start off with I'm 21 and I go to school full time, however, I only make about 10k a year, and my credit card debt is at around 7k.  (Majority of the debt was accrued a year, year and a half ago when I helped a family member in need, and also just all around foolishness on my part).  Nowadays, the only charges I make are very small amounts, most of which I just pay back during payday.

 

Since it is summer and I'm out of school until next semester, I make around 800 a month.  My credit card bills equal a little over 200 per month.  I know you guys may be thinking that about a week and a half's worth of pay out of an entire month should easily be doable, and it is, but it seems like literally half of my check (I get paid weekly) is going to pay credit cards.  I'm starting to think it's because about 7 of my 9 cards have due dates on separate days.

 

I already cut in half the credit card that I owe the most on ($2100 balance on a $2300 limit card), and I simply don't touch two of my other cards.  It's gotten to the point that I've considered taking off next semester to work full time so that I can really put a dent in my debt, but the fact that I don't have a car is severely limiting my options to working locally, so I'm kind of stuck right now.

 

Any advice you guys can give me?  What should I do?


Before offering advice, I'd like to know the balances on your current cc's so a pay down plan can be suggested. 

Congrats on cutting down a large chunk of your balance and for acknowledging that you need help.

 

While I agree that an increase in resources would address OPs problems,  there are other issues to consider.  

Message 11 of 19
Established Contributor

Re: Knee deep in CC debt, I don't know what to do..

Is it correct to assume you aren't paying rent? Is food and bills covered by parents? Or are you roommating. If those CC bills are your only real bills, then you have a lot of room over 200/mo to throw at those balances. There's a different feeling when you stop just treading water, and you turn around and make a powerful resolve that you will destroy the debt. It's amazing what you'll find you can do when you decide to beat it. I've put about 1/3 of my income toward CC debt since January. Every month. Great feeling when you know you're getting somewhere. And then you'll have the rewards of good credit, being able to apply for good cards, etc. It really is worth it so figure out a plan, go all out, and kill that thing! Smiley Happy


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Message 12 of 19
Senior Contributor

Re: Knee deep in CC debt, I don't know what to do..


user5387 wrote:

I'd try to lower the balances on maxed cards first.


This.  You want to avoid AA as that will make your situation even worse.  Definitely do not close any accounts with balances or else you'll be stuck with maxed utilization on the closed accounts until the accounts are completely paid off.

Message 13 of 19
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Established Contributor

Re: Knee deep in CC debt, I don't know what to do..

It's good that you are seeking advice now. I'm sure it seems like an impossible situation now, but this is fixable. Take the cards out of your wallet. Figure out a budget, so you can live off cash, until your cards are paid down. It may mean eating more Ramen for awhile, but the time will go by fast.

 

Please list your cards, credit limit, balance, and current minimums. If you have a few that have low balances, it may make more sense in your case to put more toward those cards and get them paid off, since you are having difficulty managing the number you have. It's hard to say without seeing the total picture.

Message 14 of 19
Senior Contributor

Re: Knee deep in CC debt, I don't know what to do..

Reincarnated wrote:

Get a second job. It's unacceptable that you're only working one job during the summer. What are you doing in your spare time?

 

$800 a month is nothing. Making just a little above minimum wage I still make about double that in a month. Work more hours is my advice for you, especially now that you're not in school.

 


Rude...and doesn't help....at all.

 

OP:  Of course, you could use an income boost, who couldn't?   Is there a close family member who would be willing to help you out with a co-signed loan?  That would be most beneficial to you.  If not, you can always do credit counseling....we did it and it worked out great!  Paid everything off way early as we had extra $$$ to toss on the balances.

 

What about eBay?  That may be something for you.  I recently sold about $300 worth of junk (I mean treasures) hanging around.

 

If you want info on the CCS I used, send me a pm and I'll respond.

Message 15 of 19
New Contributor

Re: Knee deep in CC debt, I don't know what to do..

Everyone saying that I'm rude probably didn't understand my first post here.

 

Clearly, by saying that I make just a little bit above minimum wage, I'm alread putting myself below everyone here in this thread. 

 

What I'm emphasizing is that if someone needs money, then they need to work MORE. I get it, we don't know the OP's living situation, but clearly they said that it's summer and there's no school unti next semester, so my suggestion is to work until then.

 

I'm a student too and by all means, I support the OP. It's just that from my perspective, now is the perfect time to catch up on his debt. As they said in their first post, it was accrued due to foolishness, and my advice is to not be foolish and not work more that is, if possible.

 

Money doesn't grow from trees. No other advice can help with a situation like this other than to increase income. Let's be real here.

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Message 16 of 19
Valued Contributor

Re: Knee deep in CC debt, I don't know what to do..


Reincarnated wrote:

Everyone saying that I'm rude probably didn't understand my first post here.

 

Clearly, by saying that I make just a little bit above minimum wage, I'm alread putting myself below everyone here in this thread. 

 

What I'm emphasizing is that if someone needs money, then they need to work MORE. I get it, we don't know the OP's living situation, but clearly they said that it's summer and there's no school unti next semester, so my suggestion is to work until then.

 

I'm a student too and by all means, I support the OP. It's just that from my perspective, now is the perfect time to catch up on his debt. As they said in their first post, it was accrued due to foolishness, and my advice is to not be foolish and not work more that is, if possible.

 

Money doesn't grow from trees. No other advice can help with a situation like this other than to increase income. Let's be real here.


It was the tone, not the advice.  I worked full time, went to school full time, & raised two kids(as a single parent).  Working more, during the summer, is the first thing most of us would advise; but we also acknowledge that we may not know OPs full situation and one of the tenants of this forum is to be non-judgmental & non-abrasive.  

 

It's hard for people to ask for help and getting slapped down when they do, won't help matters and may shut down their abilitity to take the advice that is sandwiched in with the criticism.  You, yourself are now reacting to the criticism of the other posters instead of their advice to be kind. Hence, your response.  It's human nature. When we feel attacked, we defend or tune out.

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Message 17 of 19
Valued Contributor

Re: Knee deep in CC debt, I don't know what to do..


Reincarnated wrote:

Everyone saying that I'm rude probably didn't understand my first post here.

 

Clearly, by saying that I make just a little bit above minimum wage, I'm alread putting myself below everyone here in this thread. 

 

What I'm emphasizing is that if someone needs money, then they need to work MORE. I get it, we don't know the OP's living situation, but clearly they said that it's summer and there's no school unti next semester, so my suggestion is to work until then.

 

I'm a student too and by all means, I support the OP. It's just that from my perspective, now is the perfect time to catch up on his debt. As they said in their first post, it was accrued due to foolishness, and my advice is to not be foolish and not work more that is, if possible.

 

Money doesn't grow from trees. No other advice can help with a situation like this other than to increase income. Let's be real here.


Your advice was sound enough, but the way you offered it came out in a condescending manner. What you make doesn't "lower" you in any one's eyes at all. The one thing I noticed was that the OP stated that he or she has no car, so getting around, and driving to a place of employment would be difficult. Not every one has access to public transportation, either. If he is in a smaller town, there can be issues with both having places to work and the ability to get there.

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Message 18 of 19
Valued Contributor

Re: Knee deep in CC debt, I don't know what to do..


WallyxD wrote:

Hi guys, so, as you can tell by my subject, I have A TON of credit card debt, and I'm getting stressed.  At first, I thought, okay cool, I can handle it, but now, I'm essentially a mess.

 

I'll start off with I'm 21 and I go to school full time, however, I only make about 10k a year, and my credit card debt is at around 7k.  (Majority of the debt was accrued a year, year and a half ago when I helped a family member in need, and also just all around foolishness on my part).  Nowadays, the only charges I make are very small amounts, most of which I just pay back during payday.

 

Since it is summer and I'm out of school until next semester, I make around 800 a month.  My credit card bills equal a little over 200 per month.  I know you guys may be thinking that about a week and a half's worth of pay out of an entire month should easily be doable, and it is, but it seems like literally half of my check (I get paid weekly) is going to pay credit cards.  I'm starting to think it's because about 7 of my 9 cards have due dates on separate days.

 

I already cut in half the credit card that I owe the most on ($2100 balance on a $2300 limit card), and I simply don't touch two of my other cards.  It's gotten to the point that I've considered taking off next semester to work full time so that I can really put a dent in my debt, but the fact that I don't have a car is severely limiting my options to working locally, so I'm kind of stuck right now.

 

Any advice you guys can give me?  What should I do?


What are your individual balances on each card and their interest rates? What are your minimum payments? What are your other expenses?

 

Can you explain the situation you got in to those you helped out and loaned your credit to? They need to start paying you back, ASAP even if it is small amounts.

 

Additionally, don't add charges to your cards. Pay in cash or debit. No sense adding to the debt pile, even if you are paying back what you spend immediately.

 

Here is what I see so far:

 

AE Store CC: $850

AEO Visa: $2,300/ Owe $2100

CapOne Quicksilver: $1,700

Citi Forward for Students $1,500

Walmart CC $1,350

Chase Amazon: $500

PayPal Smart Connect: $500

Discover iT for Students: $500

Chase Freedom: $500

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Goal Score: 700   Seedling again as of 07/29/14
Message 19 of 19