I made some poor financial decisions and ended up in debt. My only credit card is currently at 0% interest until February 23rd, 2025. Every paycheck I get goes straight to paying off this card, except for my rent and student loan payments. But since I keep using it to cover groceries, gas, and other expenses, it feels like I’m not making any progress paying it off.
Would it be a good idea to lock this card and get a new one for daily expenses while focusing on paying down the current balance?
Edit: I’ve decided to start using my debit card instead. I grew up in a family that used credit cards for everything to earn points. After reading some comments, I realize getting another credit card isn’t the best solution. Thank you for the advice! I wish I had figured this out months ago before getting into this situation, but I guess you live and learn.
Simply pay it off and cease using it. Obtain a debit card and set spending limits.
You’re spending more than you can afford. Establish and adhere to a budget. Maybe get an additional half time job. You’ll suffer considerably more in February.
Put down the credit card! For petrol and groceries, use cash, cheque, or debit card. Before you make any more purchases, pay it off in full. (After that, make sure you always pay it off each month to avoid having a balance.)
You seem to be in a difficult situation with your credit card debt, particularly given how simple it is to continue using it for regular spending. Locking it could be a smart strategy to keep your attention on paying it off without accruing further interest.
Taking on additional debt will not make you debt-free; rather, it will make you debt-richer. Give up using the card for “everyday expenses”; instead, use your debit card for those kinds of purchases. Make a spreadsheet of some form that has all of your expenses on it and how much you pay to each and due dates and take a look at where your money is going. To supplement your income, you might be able to take on a side job.
Regretfully, it seems like something is off with your budget. You must cease using that card and make some financial cuts. Sincerely, from someone who needs to pay off a few credit cards—for heaven’s sake, don’t open any more. The idea is to stop treating them like money because they aren’t real money. Make a budget and use your real money on your debit card.
If you can’t afford your lifestyle, you should make some cuts if at all possible. Stop using the credit card and switch to debit if you’re comfortable going back into debt. The fact that you can’t pay off your card and that it’s a ticking time bomb won’t be changed by getting another one.
Just pay it off as soon as possible to take advantage of the 0% interest rate before you start digging yourself a whole new hole.
My advice is to pay off as much of the debt as you can by January. After that, you have two options:
- Apply for a new credit card with a 0% APR balance transfer offer that lasts 15 months or more.
- Consider taking out a low-interest loan from a credit union.
If you decide to go with a balance transfer, I recommend looking at the Amex Cash Everyday card, which offers a 15-month 0% APR on transfers. Keep in mind that there won’t be a hard inquiry unless you’re approved.
Wait until mid-January to evaluate your options. Whatever you can pay off between now and then will make a difference.
If your debt is substantial, a loan from a credit union might be the better option.
This credit card needs to be paid off, thus you need to cease using it. For essentials like food and petrol, use cash, checks, or a debit card rather than credit. This guarantees that you spend only the money you possess.
Obtaining a second credit card can only make your current issue worse, therefore AVOID doing so.
If you’re financially responsible (or just well off), putting all your expenses on a credit card and paying it off in full every month is the right approach. But that’s not your situation.
When you’re stuck in a financial hole and trying to fill it up once a month while digging it deeper every day, you’re never going to get out. Stop making the hole bigger.
Getting another credit card right now would be the worst thing you could do. It will only double your debt until you figure out your real budget. You’re not even being charged interest yet, which probably means you’ve accumulated all this debt in less than a year. You need to get your spending under control, live within your means, and find ways to increase your income.
I’m not trying to sound harsh, but I say this from experience. I got into about $8k of debt when I was 19 and didn’t fully pay it off until I was 30. I was doing exactly what you’re doing now, and it stressed me out for a decade. Make reducing your spending a priority—it will become a habit. Side note: most millionaires I know are also the most frugal people I know, which is no coincidence.