I’ve got a mix of loans, credit cards, and an Affirm balance, and I feel stuck. Here’s what I’m dealing with:
Loans:
$2,762 - $295 per month
$3,443 - $163 per month
Credit cards:
$419 - $25 per month
$79 - $25 per month
$225 - $25 per month
$225 - $30 per month
$197 - $30 per month
$148 - $40 per month
$387 - $30 per month
Affirm balance:
$1,703 total for school materials, paying $215 per month
I get $1,700 every two and a half months from a side contract, but most of my paycheck goes straight to bills. About 70% of this debt came from lawyer fees and court costs, plus school expenses.
I’m sick of feeling stuck. I’ve already cut up most of my cards except for the ones I need (Capital One and my credit union). What’s the best way to pay this off?
Start with the smallest balances first. Pay those off, then roll the payments into the next one.
But honestly, you need more income. You’re spreading yourself too thin, and without extra money coming in, it’s going to feel like you’re not making progress.
@Beckett
My Affirm total is $1,703, and the payments range from $12 to $80 per month. I think the interest is somewhere between 12% and 24%, but I can’t find the exact number on my account
Zeke said: @Beckett
My Affirm total is $1,703, and the payments range from $12 to $80 per month. I think the interest is somewhere between 12% and 24%, but I can’t find the exact number on my account
If you had a 0% balance transfer card, you could dump everything onto that and just pay it down aggressively. But if that’s not an option, knocking out the smaller ones first is the best bet.
If it’s soon, use it to clear all your credit card debt. That alone will free up $205 per month in payments. Then put all of that extra money toward Affirm. By the time your next $1,700 comes in, Affirm should be almost gone. That means you can start attacking the first loan, which should be down to around $1,200 by then.
With the extra money freed up, you could be completely debt-free in about seven months.
@Reagan
This is exactly what I needed to hear. My next payment is coming in about 20 days. I’ll knock out all the credit cards and follow this plan. Thanks for breaking it down!
Zeke said: @Reagan
This is exactly what I needed to hear. My next payment is coming in about 20 days. I’ll knock out all the credit cards and follow this plan. Thanks for breaking it down!
The timeline might stretch a bit depending on interest rates, but don’t let that discourage you.
Once your credit cards are gone, you might want to switch to the avalanche method and hit the highest interest rate first.
If you follow this, you should be debt-free by Thanksgiving. And if you keep saving what you were paying on debt, you’ll have a few thousand in savings by the end of the year.
@Reagan
That’s really motivating. I’ve been making minimum payments forever, and it feels like I’m going nowhere. Having that $205 freed up from the credit cards will make a huge difference.
You’ve got like seven credit cards?! That’s the first issue, lol. But props to you for wanting to fix it.
First thing—do you have any emergency savings? If not, start with $1,000 and don’t touch it. That’s your safety net. Then, start the snowball method. With your next $1,700, wipe out all the credit card debt. That frees up $205 per month.
From there, knock out:
Affirm ($1,703)
Loan 1 ($2,762)
Loan 2 ($3,443)
If you keep putting the extra money you free up toward the next debt, you’ll be done before the year is over. By 2026, you’ll be debt-free, and if you keep saving what you were paying, you’ll have a nice cushion to work with.
@Rain
Appreciate this so much. The last year has been a mess. I had to go to family court for custody of my son, and my lawyer was worth every penny but insanely expensive. That’s why I took out the loans and maxed out my cards.
Before all this, I never carried a balance on my credit cards, and I always paid them off in full each month. This was just a situation I couldn’t avoid.
If your credit isn’t too bad, look into getting a 0% balance transfer card for 12-18 months. It’ll cost you a 3% transfer fee, but having all your debt in one place at 0% interest can make a huge difference.
It worked wonders for me when I was buried in credit card debt.
Zeke said: @Cameron
Any recommendations for someone with bad credit?
I’ve done it twice. Both times my credit score was around 600-650. Managed to get a $10K limit one time and $15K another. If you’re in that range, check NerdWallet for options. Wells Fargo and Bank of America both gave me 12 months at 0% with a small transfer fee.
