I’ve got $24k in credit card debt on one card with a 12% interest rate. The minimum payment is about $500 a month. I own my truck outright and don’t have any other big bills. Just looking for suggestions on how to get rid of this debt faster.
With 12% interest, that’s around $240 in interest every month. So if you’re only paying $500, almost half of it is just covering interest.
At that rate, you’d pay $6,000 a year but only knock off about $3,000 from the balance. That means it could take around eight years to pay it off. Do you want to be dealing with this for that long?
Try to put more than $500 toward it each month. Have you looked into a 0% balance transfer?
@River
I tried that, but they only let me transfer $1,000 at a time.
If you only make the minimum payment, this debt will never go away. Cut up the card so you don’t add more to it, then start paying as much extra as possible every month.
Throw every spare dollar at it. Once you’re out of debt, don’t get back into this situation.
Make a budget, set up an emergency fund, and start investing. Credit cards make it easy to pretend you have money when you don’t. Real wealth comes from saving and investing, not borrowing.
@Zorion
Saying ‘never get another credit card’ is bad advice.
Franz said:
@Zorion
Saying ‘never get another credit card’ is bad advice.
If you want to use one for travel or emergencies and pay it off every month, fine. But if it’s just to spend money you don’t have, that’s a mistake.
Edit: The person who posted this is $24k in debt on one card. In their case, not having one might be the best move.
@Zorion
Saying ‘never’ is extreme. A credit card isn’t the problem… it’s how people use them.
Franz said:
@Zorion
Saying ‘never’ is extreme. A credit card isn’t the problem… it’s how people use them.
If you have the discipline to use one without carrying a balance, sure. But most people don’t. I use mine only for flights and hotels, and it stays in a drawer the rest of the time.
@Zorion
What about car repairs, medical bills, unexpected stuff? Credit can be a safety net if used right.
Franz said:
@Zorion
What about car repairs, medical bills, unexpected stuff? Credit can be a safety net if used right.
A debit card works just fine for those. Do you really think it’s impossible to live without borrowing money?
@Zorion
Most people don’t have $6,000 sitting in their checking account for emergencies. Be realistic.
Franz said:
@Zorion
Most people don’t have $6,000 sitting in their checking account for emergencies. Be realistic.
Anyone who pays off their debts and manages their money well can build up an emergency fund. It just takes time and discipline.
Debt-free living is possible, but you have to start by getting rid of what you owe and staying within your means.
Who’s the card with? Some banks offer hardship programs with lower interest rates if you close the account.
Laken said:
Who’s the card with? Some banks offer hardship programs with lower interest rates if you close the account.
It’s with PSECU. If I close the card, would they lower my rate? I can afford the payments, but it feels like I’m making no progress.
@Jesse
Since it’s a credit union, they might be more flexible. Some banks offer 0% hardship plans.
I had $100k in debt, and Citibank, Synchrony, and Amex all gave me reduced rates. It’s worth asking.
What’s your income? Do you have extra cash you can throw at the debt?
Rafe said:
What’s your income? Do you have extra cash you can throw at the debt?
I make around $70k. It just feels like I’m stuck.
Rafe said:
What’s your income? Do you have extra cash you can throw at the debt?
I make around $70k. It just feels like I’m stuck.
I could put an extra $500–$1,000 toward it every month.
@Jesse
That’s a solid income. If you throw an extra $1,000 at it, you’ll have $1,500 going toward it each month—$15k by the end of the year.
If you want to speed it up, consider picking up a side job on weekends or evenings. I did that, and it helped me clear my debt way faster. If you can make another $1,000 a month, you’ll be done in a year.
Short-term pain, long-term relief. This time next year, you could be debt-free.
@Jesse
Do you have an emergency fund?