I’m in a tough spot right now with around $25,000 in credit card debt across multiple cards, some maxed out. I co-signed a personal loan that still has $14,000 left, and I owe around $16,000 on my car loan. I also owe about $4,300 to my orthodontist and have a timeshare that’s costing me close to $12,000.
I’m able to make all my payments on time but can’t seem to make a dent in my debt because of the high interest. I feel like I’m living paycheck to paycheck, struggling to cover even basic expenses. I’ve thought about selling my belongings or getting a side job like Uber/Lyft, but that may not be enough.
The timeshare payment goes onto a maxed-out credit card each month, and my braces are on a care credit card that’s almost maxed out too. Debt consolidation sounds like it could help, but I’d still be left using those cards.
Not sure where to go from here or how to start climbing out of this debt. Any advice on making some extra money or tips for managing this would be much appreciated.
Get on a computer and start tracking every payday on a spreadsheet. Set up a row for each paycheck over the year, then list out your main bills like rent, utilities, car payments, and credit cards. Start by covering essentials, then whatever is left can go to paying down your smallest credit card or loan first.
This forum doesn’t allow tables, but I’d be happy to help you set up a budget structure if you need tips.
Bankruptcy might seem like an option, but unless you change spending habits, you could end up back here. Best bet? Cut your lifestyle down as much as possible, work like crazy, and pay things off step by step. Once you’re out, avoid credit cards and loans, they’re like quicksand.
You might want to talk to a bankruptcy attorney. The co-signed loan could fall on the other person, especially if they’re unable to pay. A lawyer could also give you options for getting rid of the timeshare.
YNAB (You Need a Budget) offers a free trial and plenty of videos with tips on budgeting. Lots of users in this forum say it’s super helpful. There’s also the r/DaveRamsey method that’s pretty popular, as well as resources like MrMoneyMustache if you need motivation.
Stop paying on the timeshare if you can and cancel that card. When you call, ask for the person handling deed-backs or surrenders, and explain your situation. Some places may take it back for a small fee.
I use Velocity Banking along with the snowball method. Pairing bills with specific credit cards helped me gain control of my payments. The snowball method works well but requires focus and patience.
Start by listing every expense and the interest on each card. If things are so tight you’re not moving forward, it’s time to make a change. Either increase your income or cut back on spending.