I’m in a tough spot with 74k of debt at 15% interest. My plan is to pay $3,500 each month and get rid of it in about 22 months. I make around 170k a year, and after my bills, I have $7,400 left over monthly. I’m planning to live on $2,900 for essentials like food, gas, and clothes, so I can focus on paying down the debt.
Any advice on other options I could try? This is a huge lifestyle shift for me, and honestly, most of this debt came from gambling. Any tips are welcome.
With your income, it’s definitely possible. Just stop using credit entirely. I’d pay as much as possible every month and look into consolidating when interest rates go down in 6-12 months.
Corin said:
With your income, it’s definitely possible. Just stop using credit entirely. I’d pay as much as possible every month and look into consolidating when interest rates go down in 6-12 months.
Exactly this. Start by paying down the highest interest card and then put it aside. Move on to the next one. If you can, get a 0% balance transfer card for 15-18 months and move some debt there, then freeze that card so you’re not tempted to use it.
Back in the day, people used to literally freeze their cards in a block of ice. You can use apps now, but the freezer trick really helps keep it out of reach.
@Dexter
I actually threw my cards out, so I can’t access them. I’ve been told to pay off the smaller debts first, then go after the big ones. This is spread across 5 cards, but most are business credit cards, so they don’t show on my personal credit report.
@Ashby
That’s a good approach. Not having the cards around is a smart move. Maybe consider ordering a backup card, but put it on ice for emergencies only.
Your income is solid, and you’ve got a plan. Stick with it, and imagine if you had to rely on those cards just to get by.
@Dexter
It’s a good income, but yeah, it’s a lot of debt to clean up. Thanks for the motivation.
Ashby said:
@Dexter
It’s a good income, but yeah, it’s a lot of debt to clean up. Thanks for the motivation.
You’re doing well, honestly. There’s a lot to be thankful for, even if it doesn’t feel like it right now.
Keep going with your plan.
Corin said:
With your income, it’s definitely possible. Just stop using credit entirely. I’d pay as much as possible every month and look into consolidating when interest rates go down in 6-12 months.
Thanks, that’s encouraging. I’m only 26, so I’m hoping this is a lesson I never have to learn again.
With an income of $170K, try living like you make $70K and put the rest toward the debt. That 15% interest is brutal!
Once it’s paid, keep living below your means and start saving or investing for the future.
@Reese
Yep, that’s exactly the plan.
Been there myself. Years of stress isn’t worth the fancy stuff I bought with credit cards.
Then learn how to use credit cards in a way that works for you instead of against you. There’s a way to make them work, but it’s easy to fall into bad habits.
Have you tried using a budgeting app? They link to your accounts so you can track every dollar. Makes it a lot easier to see where your money’s going.
Nori said:
Have you tried using a budgeting app? They link to your accounts so you can track every dollar. Makes it a lot easier to see where your money’s going.
I started last week, and it’s eye-opening. I realize I can get by on way less than I was spending before.
@Ashby
I meant by
@Ashby
That’s awesome! I use Copilot, and it’s helped me so much. Any app that shows every penny works, though. You’ll start finding extra cash that you didn’t even realize was slipping away. Keep going!
@Nori
Going to check it out now. My budgeting skills are terrible, but I’m going to live like I’m broke for the next year or so.
Ashby said:
@Nori
Going to check it out now. My budgeting skills are terrible, but I’m going to live like I’m broke for the next year or so.
It’s on the Apple App Store (maybe other places too). Free trial for a month, and then you pay, but it’s totally worth it.
Depending on your credit score, you might be able to get a new card with a low balance transfer rate. Or you could try your current cards if they have space left.
Just be careful to not run up more debt and focus on paying down the higher interest first.
@Jordan
I’ve got a 750 credit score, and I do have a card with 0% interest for 8 months. Planning to move some debt there. It’s a business card, so it doesn’t show up on my personal report.
Out of curiosity… what’d you spend it on?