I’m 23, have over $2,500 in credit card debt, and earn $30 an hour. I live at home with my parents and don’t have kids. Is this debt bad for someone in my situation? Could really use some advice!
At $30 an hour, $2,500 isn’t terrible. You can clear that pretty fast.
The debt itself isn’t the worst, but getting into credit card debt for things you don’t need can be a slippery slope. If it’s for luxuries and not emergencies, that’s a habit you’ll want to break. Clearing $2,500 is doable now, but if it turns into $25,000 or more in the future, that’s when it becomes a real problem. Learn from this, and don’t let it happen again.
@Galen
I’m 21 and have around $2,100 in debt too. I’ve been living below my means to pay it off faster. You can do the same!
What was the debt for? Was it an emergency or just splurging?
For your income and living situation, it’s manageable, but it’s better to avoid credit card debt altogether. Pay it off as soon as possible before it grows.
@Wade
Yeah, I bought some fancy clothes thinking I’d get a raise soon. I’m working on paying it off now. Do you think I should focus on stocks/ETFs or save up for a loan? My neighbor is selling his lot next to our house.
@Pax
That’s a bigger financial question, but here’s where I’d start:
- Pay off the credit card debt first.
- Build up $5k in a high-yield savings account for emergencies.
- After that, decide what’s next. If you plan to move out soon, save for that. If not, consider mutual funds or the S&P for investing.
You can treat yourself occasionally, but only if you’re not adding to the debt. Focus on steps 1 and 2, then figure out your next goal.
@Wade
Thanks for breaking it down.
It’s not horrible. Just cut back on eating out or going out until it’s paid off. It’ll suck for a bit, but you’ll feel better when it’s gone.
Yan said:
It’s not horrible. Just cut back on eating out or going out until it’s paid off. It’ll suck for a bit, but you’ll feel better when it’s gone.
Yeah, I just get bored staying home. I wanna meet someone, you know?
@Pax
I get that, but focus on paying it off first. You’ll have time for that later.
Pay it off fast, then put your savings into a high-yield account or max out a Roth IRA.
What kind of advice are you looking for? You make enough money to pay it off quickly. Just focus on paying it off and stop making new purchases.
Dru said:
What kind of advice are you looking for? You make enough money to pay it off quickly. Just focus on paying it off and stop making new purchases.
I’m torn between investing in stocks/ETFs or saving for a home loan. My neighbor is selling their lot, and it could be a good investment.
@Pax
Bruh, you’re paying credit card interest every month. Clear that debt first. Otherwise, you’re just throwing money away.
Yes, $2,500 in debt is bad. You should aim for zero.
You make $30 an hour and live rent-free. How do you even have credit card debt?
Gray said:
You make $30 an hour and live rent-free. How do you even have credit card debt?
Something doesn’t add up here. Are you working full-time? The debt itself isn’t awful, but it shows poor money habits. Start saving and investing consistently.
Any credit card debt is bad. Imagine having $2,500 saved instead of owing it. Work on paying it off.
I had $6k in credit card debt when I was 22 making $19 an hour. I paid $2.5k off in two months. You can do it too.