50K in Debt

[Anonymous]

I have nearly 50K in unsecured debt mostly credit cards.  I pay more than the minimum every month, but am starting to get buried in Debt. I looked at Debt consolidation, but was urged not to do it since my credit score is 690.  I'll take any suggestions.  Thanks in advance.

[Anonymous]

Do you own a home?

[Anonymous]

Hi sideshowb3! Welcome to the myFICO forums!

I think that a good starting point, if you haven't done so already, might be to visit the FTC website to read:  FTC website: Knee Deep in Debt

Have you tried talking to your current creditors about hardship programs that will reduce your payments? Frequently, hardship programs require the card to be closed, but when you're seriously over-extended this option is better than defaulting. If you're able to negotiate reduced payments you can come up with your own debt snowball approach to tackle this debt. 

Some other options are to increase your income and decrease your living expenses. If it's an option for your personal situation you may want to look into getting a 2nd or a 3rd job. For a while, you may need to greatly reduce or cut out altogether any extras that you can live without. You might also try selling things that you're not using, or that you can live without to help with your debt paydown.

There are some members here who have also had a great amount of success with Debt Management Plans (Not to be confused with the so-called Debt Reduction companies that rip you off and ruin your credit).

[Anonymous]

Unfortunately I rent the house I'm in now.  I have an option to borrow against my 403B, but really don't want to do that unless I have to.

[marty56]

I sent you a PM on the DMP company I used.  As long as you can afford the payments, DMP is the way to go these days.  It will also protect you from AA by freezing your interest rates and giving you a clear path and timeframe out of CC debt.

[Anonymous]

Not owning a house right now can be more than a blessing, just as hitting a wall with 50K in debt can be.

If you can take the time to see this time as a blessing, it will make your whole world transform for the better.

YOU are not your credit!!!

[Tons_of_Debt]

I would snowball the debt. While it isn't always the most financially advantageous option, it'll give you a confidence boost to inspire you to pay off the rest of that large amount of debt. I had about that much debt and am using the snowball method with great success!

My problem was that the debt was so large, I felt I would never make a dent in it. The snowball method gave me the motivation I needed to continue on.

[Anonymous]

In Sept 2007, when I had almost $30K in credit card debt, I created a budget for myself, ensuring that every bill got paid, and that I had enough money for groceries, gas, car insurance, etc.  And I have myself $50 a month for whatever I wanted.  Then I slowly started snowballing my debt, putting any extra monthly income I had towards whatever credit card had the highest interest rate. 

Then in Dec 2007 I got a part time job which I had for 18 months.  In April 2008 I got a promotion, with a raise, from my full-time job.  I got additionally raises, though they were minor in Nov and Dec 2008.  In February 2009 I paid off the last of my credit card debt and in May 2009 I paid off my car, leaving myself with only my student loans as debt.  In 2 1/2 weeks I will close on my first home.  

That's what worked for me.  I know others have had success with DMP's and I'm a big fan of whatever works for you.  Others have said that using snowball approach but paying off the card with the lowest debt so that they can use that as an evidence of their progress.  

I chose paying down the one with the highest interest rate so that I could save money and get the cards paid off faster.  

But in reality it's finding whatever works for you.