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.
@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.
