20k in credit debt…what do I do now?

I’m stuck with $20k in credit card debt and feeling really ashamed about it. I make $35k a year and tried getting a better-paying job, but it didn’t work out. I don’t know how to handle this, and I’m scared to tell my family. I can’t afford to live like this anymore, and I don’t want to keep piling on more debt. Any advice?

Try calling your creditors and letting them know you’re considering bankruptcy. They might work with you to lower your interest. Also, check out ACCC for help.

Micah said:
Try calling your creditors and letting them know you’re considering bankruptcy. They might work with you to lower your interest. Also, check out ACCC for help.

I used ACCC to deal with a personal loan that had a crazy 30% interest rate. They worked with my lender to lower it to 12%, cutting my monthly payment in half. The program only costs $7 a month, and it saved me from ruining my credit or doing something desperate like debt settlement. They’re a lifesaver for anyone struggling with debt.

@Asa
I used them too, and they helped direct all extra payments straight to my principal balance, which made a huge difference.

@Asa
Does this affect your credit score or close your cards? I’ve got some CC debt at high interest rates, and I’m just managing to stay afloat, but I’m barely making a dent in the principal. Thinking of trying this if it helps lower interest.

Micah said:
Try calling your creditors and letting them know you’re considering bankruptcy. They might work with you to lower your interest. Also, check out ACCC for help.

ACCC can do the negotiating for you, and they’re backed by the credit companies. It’s much better than trying to do it all yourself.

Don’t file for bankruptcy for $20k—it’s not worth the long-term damage. Focus on increasing your income or taking on a side gig. I’m in a similar boat and working my way out of debt too. Wishing you luck!

@Leith
I just started a new job, but it’s still only $35k a year. I’m thinking of doing gig work like DoorDash, but I’m worried about my car breaking down since it already has high mileage. Retail jobs are too stressful, so I feel stuck.

@Rafe
Deliveries can get you $500 a week. Even if your car wears out, you can save enough to replace it and pay off your debt faster.

Niko said:
@Rafe
Deliveries can get you $500 a week. Even if your car wears out, you can save enough to replace it and pay off your debt faster.

Is $500 a week realistic with deliveries? It seems like it would depend on location and hours worked. Can you even do this part-time alongside a full-time job?

@Hux
I used to drive a few hours a night, a few nights a week, and made about $500 weekly between payouts and tips. It’s doable, but it depends on your area.

@Rafe
I’m in the same income range, and I just budget like crazy. It’s not easy, but focusing on paying off the smallest debts first really helps.

Leith said:
@Rafe
I’m in the same income range, and I just budget like crazy. It’s not easy, but focusing on paying off the smallest debts first really helps.

How are you handling your debt if you don’t mind me asking?

@Rafe
I use the debt snowball method. I pay off the smallest balance first, then roll that payment into the next debt. It’s slow, but it works.

@Rafe
Have you thought about trade school? A higher-paying job might make paying this off more manageable.

I filed for bankruptcy in 2017 with $20k in debt and was making about $30k a year. At first, I felt like a failure, but honestly, it was such a relief to have a fresh start. Sometimes it’s the best choice.

@Taj
If you’re young, chapter 7 bankruptcy could be a good option. It costs a few thousand upfront, but it clears off your credit in 7-9 years. If not, consider nonprofit credit counseling to lower interest rates to nearly zero.

@Rohan
I’m 32. How do I even start filing for bankruptcy?

Rafe said:
@Rohan
I’m 32. How do I even start filing for bankruptcy?

At 32, you’ve still got time to recover. Look up local bankruptcy attorneys and set up a free consultation. They’ll explain the process and your options. Also, make sure to review your budget and explore all your options before deciding.

@Taj
Bankruptcy should be the last resort. Try paying it off with extra work or a second job. It’s tough, but it’s the right thing to do.