topic Re: $53k In Total Debt, $100k Salary - Need Advice in Personal Finance

$53k In Total Debt, $100k Salary - Need Advice

hyperspacepilot444 — Mon, 04 Aug 2025 16:07:36 GMT

Hello everyone,

I'm pretty scared typing this but I need advice on how to tackle paying off my debt. After totaling everything up I learned that my total debt is $53,425, with me paying about $1,903 a month (credit card debt + personal loan). I realized I've made some serious mistakes in my finances but I believe I can come back from this, since I'm the one that got myself into this mess. Below is the breakdown:

Credit Cards:

Card 1 Balance: $7,504. Minimum Payment: $310. APR: 29.99%

Card 2 Balance: $6,952. Minimum Payment: $256. APR: 27.24%

Card 3 Balance: $10,262. Minimum Payment: $420. APR: 28.24%

Card 4 Balance: $3,115. Minimum Payment: $104. APR: 27.99%

Card 5 Balance: $876. Minimum Payment: $25. APR: 0% until June 2026

Card 6 Balance: $3,553. Minimum Payment: $104. APR: 23.24%

Card 7 Balance: $6,427. Minimum Payment: $210. APR: 26.24%

Personal Loan Balance: $14,736. Minimum Payment: $474. APR: 28.85%

Current Rent: $2,303

Other stats: 30 years old, no kids, no wife, no gf. Bi-weekly paycheck - $2,989

I want to note about the Personal Loan - Last year I was unemployed for about 8 months, finally after months of interviewing for multiple different roles I was able to get a full time offer for $100k a year, however this was contingent on me moving to a different state halfway across the country. At that time, I literally did not have the funds to make the move to a different state, so I decided to take a personal loan to fund my move in order for me to take the job. I had to move all my belongings, car, etc. I'm now working in my new job, but it's getting pretty hard to make payments on time, I have to pay rent late this month. Please help me on what I should do next. This amount of debt is causing me to go to bed with anxiety, and its kind of affecting my work life balance as well. I'm kind of regretting making the move to a entirely different state, it caused me so much more debt.

I'm seeking financial advice from anyone on the best route to take paying off this debt. Thank you so much everyone.

Re: $53k In Total Debt, $100k Salary - Need Advice

Varsity_Lu — Mon, 04 Aug 2025 16:00:15 GMT

First, welcome to MF. You're at the right place to get the right advice to dig yourself out of this mess. Second, your job seems like it will be sufficient to make this happen. But you need to be willing to make some serious changes and sacrifices to right the ship.

Here is my advice: look for ways to cut costs and then throw everything, and I mean everything, at this debt. Once you get some of it paid down to a point you are no longer hanging on just paying minimum payments, you'll breathe easier, sleep better, and things will change quickly. You just need to get that first turn made.

Your rent seems really high. Is it possible to find a cheaper place? Seriously, you are single so living in a small dwelling for a year or so shouldn't be that big of a deal. You can save a ton by changing your rent.

Can you sell your car and get by without one? Or a cheaper one?

Do you eat out? If so, stop. Buy groceries and learn to cook. Not only will you be healthier, your save a ton of money.

Do not splurge on anything at this point: no vacations, no big purchases, no expensive clothes. You need to view almost everything as a "want" rather than a "need" for the next year or so. You need to be extreme with this. You'd be surprised how much these kinds of things can cost. And you'd be surprised how easily people justify splurges when they don't adjust their mindset.

I'm sure the others here will give you advice on which cards to pay off first and all that, but I know your mindset going in can affect things. Get your head right and you can do this. Good luck. We are all rooting for you.

Re: $53k In Total Debt, $100k Salary - Need Advice

JoeRockhead — Mon, 04 Aug 2025 17:20:32 GMT

@hyperspacepilot444 wrote:
Hello everyone,
I'm pretty scared typing this but I need advice on how to tackle paying off my debt. After totaling everything up I learned that my total debt is $53,425, with me paying about $1,903 a month (credit card debt + personal loan). I realized I've made some serious mistakes in my finances but I believe I can come back from this, since I'm the one that got myself into this mess. Below is the breakdown:
Credit Cards:
Card 1 Balance: $7,504. Minimum Payment: $310. APR: 29.99%
Card 2 Balance: $6,952. Minimum Payment: $256. APR: 27.24%
Card 3 Balance: $10,262. Minimum Payment: $420. APR: 28.24%
Card 4 Balance: $3,115. Minimum Payment: $104. APR: 27.99%
Card 5 Balance: $876. Minimum Payment: $25. APR: 0% until June 2026
Card 6 Balance: $3,553. Minimum Payment: $104. APR: 23.24%
Card 7 Balance: $6,427. Minimum Payment: $210. APR: 26.24%
Personal Loan Balance: $14,736. Minimum Payment: $474. APR: 28.85%
Current Rent: $2,303
Other stats: 30 years old, no kids, no wife, no gf. Bi-weekly paycheck - $2,989
I want to note about the Personal Loan - Last year I was unemployed for about 8 months, finally after months of interviewing for multiple different roles I was able to get a full time offer for $100k a year, however this was contingent on me moving to a different state halfway across the country. At that time, I literally did not have the funds to make the move to a different state, so I decided to take a personal loan to fund my move in order for me to take the job. I had to move all my belongings, car, etc. I'm now working in my new job, but it's getting pretty hard to make payments on time, I have to pay rent late this month. Please help me on what I should do next. This amount of debt is causing me to go to bed with anxiety, and its kind of affecting my work life balance as well. I'm kind of regretting making the move to a entirely different state, it caused me so much more debt.
I'm seeking financial advice from anyone on the best route to take paying off this debt. Thank you so much everyone.

Welcome to the forum, it would greatly help get you more specific advice on what order to best tackle the debts if you could include the credit limits on each of the cards you listed please.

Aside from looking at ways to earn extra money, and also making some lifestyle changes as mentioned by @Varsity_Lu, you can start by reaching out to each of your creditors and asking them for interest rate reductions.

Re: $53k In Total Debt, $100k Salary - Need Advice

SouthJamaica — Mon, 04 Aug 2025 16:30:29 GMT

@hyperspacepilot444 wrote:
Hello everyone,
I'm pretty scared typing this but I need advice on how to tackle paying off my debt. After totaling everything up I learned that my total debt is $53,425, with me paying about $1,903 a month (credit card debt + personal loan). I realized I've made some serious mistakes in my finances but I believe I can come back from this, since I'm the one that got myself into this mess. Below is the breakdown:

Credit Cards:
Card 1 Balance: $7,504. Minimum Payment: $310. APR: 29.99%
Card 2 Balance: $6,952. Minimum Payment: $256. APR: 27.24%
Card 3 Balance: $10,262. Minimum Payment: $420. APR: 28.24%
Card 4 Balance: $3,115. Minimum Payment: $104. APR: 27.99%
Card 5 Balance: $876. Minimum Payment: $25. APR: 0% until June 2026
Card 6 Balance: $3,553. Minimum Payment: $104. APR: 23.24%
Card 7 Balance: $6,427. Minimum Payment: $210. APR: 26.24%

Personal Loan Balance: $14,736. Minimum Payment: $474. APR: 28.85%

Current Rent: $2,303

Other stats: 30 years old, no kids, no wife, no gf. Bi-weekly paycheck - $2,989

I want to note about the Personal Loan - Last year I was unemployed for about 8 months, finally after months of interviewing for multiple different roles I was able to get a full time offer for $100k a year, however this was contingent on me moving to a different state halfway across the country. At that time, I literally did not have the funds to make the move to a different state, so I decided to take a personal loan to fund my move in order for me to take the job. I had to move all my belongings, car, etc. I'm now working in my new job, but it's getting pretty hard to make payments on time, I have to pay rent late this month. Please help me on what I should do next. This amount of debt is causing me to go to bed with anxiety, and its kind of affecting my work life balance as well. I'm kind of regretting making the move to a entirely different state, it caused me so much more debt.

I'm seeking financial advice from anyone on the best route to take paying off this debt. Thank you so much everyone.

1. You may want to consult with a consumer bankruptcy lawyer.

2. You need to increase your income and reduce your expenses.

3. Try to concentrate on paying off card 4. If you can get that paid off, go after card 6.

Re: $53k In Total Debt, $100k Salary - Need Advice

coldfusion — Mon, 04 Aug 2025 16:32:34 GMT

You can do this.

There are 2 common ways of attacking the situation you find yourself in; the 1st is known as a debt snowball (attack the card with smallest balance first) and the 2nd is known as a debt avalanche (attack the card with the highest APR).

I'd suggest using the snowball method because it has tends to hit the first few positive milestones faster but the avalanche is also valid.

Your current committed cost (rent + minimum payments) is approx $4K/month, leaving you approx $2K per month for everything else. You need to cut back on expenses on that $2K.

The basic process is:

To start, make minimum payment + $5 on every card except the card with the $876 balance, put everything extra you have againt that card until you pay it off in its entirety.

When that card is paid off, put everything you have extra against the card with the current $3115 balance. You've already freed up $25/month since you no longer have a minimum payment on the $876 card, so put that against the $3115 card as well. When that card is paid off, attack the card with $3553 balance, and so on.

An avalanche works basically the same thing, except that instead of the card with the lowest balance you start off with the card with the highest APR and work from there. The wrinke here is that you have a card with 0% APR, so you need to fully understand the ramifications if that entire balance is not paid off by next June. t

You may see yourself being balance chased as these cards get paid down and you might see some of these cards be closed on you as they are paid off, but these are at the card issuer's discretion. If that happens just accept it and keep plugging away at it.

The other thing is since you get paid every 2 weeks you get 26 paychecks per year. For those 2 months that you get 3 paychecks use the entirety of that 3rd check to paying down this debt.

There is no 1 exactly correct way to implement a snowball or avalanche so I'm not saying you need to follow exactly what I outlined above, only as guidance of a viable strategy.

Re: $53k In Total Debt, $100k Salary - Need Advice

hyperspacepilot444 — Mon, 04 Aug 2025 16:32:38 GMT

Hello JoeRockhead, here is a breakdown of my credit limits per each card:

I have them pretty much maxed out, only a couple I currently have some remaining credit to use on.

Card 1 - $7,500

Card 2 - $7,000

Card 3 - $10,200

Card 4 - $3,200

Card 5 - $1,000

Card 6 - $3,500

Card 7 - $6,500

Do you recommend I also talk to a financial advisor? I've never done that before.

My rent is due this Wednesday which I'll be able to pay off. But I have an upcoming credit card payment on the Saturday Aug 9th, which I'm not sure if I'll have enough in my debit balance to pay off after paying rent. I'm kind of getting by from living paycheck to paycheck at this point.

Thank you for your help!

Re: $53k In Total Debt, $100k Salary - Need Advice

ForwardLooking — Mon, 04 Aug 2025 17:54:46 GMT

@hyperspacepilot444 wrote:
Hello everyone,
I'm pretty scared typing this but I need advice on how to tackle paying off my debt. After totaling everything up I learned that my total debt is $53,425, with me paying about $1,903 a month (credit card debt + personal loan). I realized I've made some serious mistakes in my finances but I believe I can come back from this, since I'm the one that got myself into this mess. Below is the breakdown:

Credit Cards:
Card 1 Balance: $7,504. Minimum Payment: $310. APR: 29.99%
Card 2 Balance: $6,952. Minimum Payment: $256. APR: 27.24%
Card 3 Balance: $10,262. Minimum Payment: $420. APR: 28.24%
Card 4 Balance: $3,115. Minimum Payment: $104. APR: 27.99%
Card 5 Balance: $876. Minimum Payment: $25. APR: 0% until June 2026
Card 6 Balance: $3,553. Minimum Payment: $104. APR: 23.24%
Card 7 Balance: $6,427. Minimum Payment: $210. APR: 26.24%

Personal Loan Balance: $14,736. Minimum Payment: $474. APR: 28.85%

Current Rent: $2,303

Other stats: 30 years old, no kids, no wife, no gf. Bi-weekly paycheck - $2,989

I want to note about the Personal Loan - Last year I was unemployed for about 8 months, finally after months of interviewing for multiple different roles I was able to get a full time offer for $100k a year, however this was contingent on me moving to a different state halfway across the country. At that time, I literally did not have the funds to make the move to a different state, so I decided to take a personal loan to fund my move in order for me to take the job. I had to move all my belongings, car, etc. I'm now working in my new job, but it's getting pretty hard to make payments on time, I have to pay rent late this month. Please help me on what I should do next. This amount of debt is causing me to go to bed with anxiety, and its kind of affecting my work life balance as well. I'm kind of regretting making the move to a entirely different state, it caused me so much more debt.

I'm seeking financial advice from anyone on the best route to take paying off this debt. Thank you so much everyone.

No shame, a lot of us have been in a similar situation. My biggest concern is that you are living paycheck to paycheck and have a payment due soon that you feel you cannot make. Short run, I would prioritize food, shelter, and transportation. Do you have anything of value you could sell quickly to cover some of the short term payments? Also, you may want to contact that servicer and ask for hardship assistance -- they may cut off your card, but they may also help put you on a recovery plan. If you are going to do this on your own, I would work the snowball method as someone else described to get you some extra cashflow more quickly. After you do that for a while and get some cards out of the way, you can switch to the avalanch method if you want and start tackeling the higher interest cards. However, I would also consider talking to a BK attorney. You can probably get a lot of this stress of your shoulders and you will have some protections that will help you dig yourself out of the hole you are in. Best case with BK is you could get into a chapter 7 and wipe away the unsecured debt quickly -- worst case, you go the chapter 13 route and pay off debt for the next 3 to 5 years, probably at a reduced amount, and be protected from adverse legal actions from your creditors.

Re: $53k In Total Debt, $100k Salary - Need Advice

FicoMike0 — Mon, 04 Aug 2025 18:00:03 GMT

Welcome to the forum!

My first impression is that you spent a lot of money you didn't have. Had you posted here sooner, you would have been advised not to. Now, when it's over the "too late" horizon, you're asking for advice.

Ok, there's still a lot of good advice here. As far as your credit situation, you could at least provide readable data, balance/ cl on the same line, if you name, rather than number cards, you might get insight on particular banks.

Looks like your credit is shot, but you don't need more debt anyway.

As @JoeRockhead suggested, you could ask each lender about hardship programs, where they drastically reduce interest. This might involve suspending or closing accounts. That's ok, you don't need more credit.

Re: $53k In Total Debt, $100k Salary - Need Advice

hyperspacepilot444 — Mon, 04 Aug 2025 18:05:42 GMT

Thank you for your feedback. I've never looked into Ch 7 bankrupcy at all. How bad does it look to creditors? I just want to understand how difficult it will make my life in the future.

Re: $53k In Total Debt, $100k Salary - Need Advice

ForwardLooking — Mon, 04 Aug 2025 18:22:06 GMT

@hyperspacepilot444 wrote:
Thank you for your feedback. I've never looked into Ch 7 bankrupcy at all. How bad does it look to creditors? I just want to understand how difficult it will make my life in the future.

You will have to qualify for a Chapter 7. You may have to do a Chapter 13 if you are above the income threashold. You will just have to talk to a lawyer and figure out what options you have. I guess the counter question is how bad do lates (60 and 90 days) and chargeoffs look to your creditors? A bankruptcy on your credit report will look a lot better than these alternatives in a few years.

Re: $53k In Total Debt, $100k Salary - Need Advice

hyperspacepilot444 — Mon, 04 Aug 2025 18:20:18 GMT

Thanks for your help here. Almost all my credit card balances above are maxed out.

What do you mean by this below? Do you mean provide the credit card issuer? like the company? Happy to provide what you need to give you more context.

"As far as your credit situation, you could at least provide readable data, balance/ cl on the same line, if you name, rather than number cards, you might get insight on particular banks."

Re: $53k In Total Debt, $100k Salary - Need Advice

CaneVariant — Mon, 04 Aug 2025 18:30:16 GMT

I was in a similar spot as you 2 years ago. ~$80k in debt with similar income and rent. Somehow $100k a year is now "close" to the poverty line in San Diego so I was blessed to be able to BK7 it all away. You will feel much better and IME it has been easy to get back in with creditors. Highish income helps. I found this forum just after my BK and have followed Soulmaster's thread "from BK7 to 700 in 2 years". I have 4 cards and 1 ssl. $30k + in CL's and FICO 8's are in the 680's. FICO 9's, 10's are much higher. Good luck!

Re: $53k In Total Debt, $100k Salary - Need Advice

FicoMike0 — Mon, 04 Aug 2025 18:36:12 GMT

What I meant was, the easier the data is to read, the more advice you get. So,

"Capone qs, $5000/$5500 limit, 25%"

That's easy to evaluate.

Re: $53k In Total Debt, $100k Salary - Need Advice

FicoMike0 — Mon, 04 Aug 2025 18:41:26 GMT

Also, ditto @Varsity_Lu

He's good for living within your means advice. His advice would have been great before you signed a lease you can't afford. Maybe next time.

Re: $53k In Total Debt, $100k Salary - Need Advice

hyperspacepilot444 — Mon, 04 Aug 2025 18:57:30 GMT

Thank you very much for your advice.

Can you sell your car and get by without one? Or a cheaper one? My current car payment is $290 a month. It's a great car, only 50k miles on it from 2019. Not sure if I should sell this now.

Do you eat out? Definatley not anymore lol. Been buying from the local grocery store: chicken, beef, white rice, broccoli, eggs, oatmeal, protein powder, butter, and other toiletries is pretty much all I buy. Going to stick to this going forward.

Questions from me: Take out a debt consolidation loan? If yes, either use the loan to pay off all of my $53k debt? or maybe just use it to pay off my CC debt? just use it for the Personal Loan? How should I use my debt consolidation loan to tackle my debt?

I don't even know where to start. Any good debt consolidation companies that are recommended?

Lastly, do you recommend I talk to a financial advisor? I don't know how much this would cost me. Seeking advice where to go next.

Re: $53k In Total Debt, $100k Salary - Need Advice

FicoMike0 — Mon, 04 Aug 2025 22:51:16 GMT

Looking at your accounts you do seem to be maxed. Also your loan is at very high interest. I expect with your utilization, you're not going to get a consolidation loan at reasonable interest. Talk to an atty, if you qualify for bk7 it's a solution. If not, try for hardship programs. Tell the banks you're considering bk, but don't want to do it. I've read of some who cut interest to like 4% and suspend account. That could do it for you, since most of your min payments are interest.

I don't suppose the employer offers a relo bonus or loan? I've moved for several jobs, there were always relo benes. Once, I remember I had to count all the Windows in the new house, there was a per each window treatment allowance, lol. Needed a new drivers license, paid for it and sent me during work time to get it.

Re: $53k In Total Debt, $100k Salary - Need Advice

hyperspacepilot444 — Mon, 04 Aug 2025 22:57:35 GMT

No relocation bonus for me lol. I get the feeling no one does that anymore.

I fear going into bk7. I feel like it's almost like a death sentance. I haven't even researched much about it based out of fear. What is the benefit of going into bk7 in my particular situation? Thanks for your feedback.

Re: $53k In Total Debt, $100k Salary - Need Advice

FlaDude — Tue, 05 Aug 2025 01:44:02 GMT

@hyperspacepilot444 wrote:
No relocation bonus for me lol. I get the feeling no one does that anymore.

I fear going into bk7. I feel like it's almost like a death sentance. I haven't even researched much about it based out of fear. What is the benefit of going into bk7 in my particular situation? Thanks for your feedback.

It gives you a fresh start financially, but your credit scores will be not good for a while.

Re: $53k In Total Debt, $100k Salary - Need Advice

FicoMike0 — Tue, 05 Aug 2025 02:27:38 GMT

Bk7 is a big step, but you need a path forward. The worst thing you can do is end up with a string of lates and defaults and then bk7.

If you do find a path forward, I would offer another idea. As you begin paydown, first pay all accounts to less than 89%. An account that high is considered maxed and invites balance chasing. That's when the bank reduced your cl each time you make a payment, keeping you maxed until you pay to zero. This keeps your credit score in the dumper. The next threshold is 69%, once below that you're probably safe.

We're all pulling for you.

Re: $53k In Total Debt, $100k Salary - Need Advice

AndrewF — Wed, 06 Aug 2025 07:33:26 GMT

Debt snowball and close each card as you pay it off so that each card you pay off is no longer a problem again.

Before you start the snowball, freeze them all and cut the cards up.