Finally paid off nearly 50k in credit card debt … anyone else been here?

$48,808.80 in credit card debt spread across active accounts, charged-off ones, and collections. It feels unreal to have it finally behind me. Time to breathe easy for a while and not fall back into old habits.

Thanks for the support, everyone!

Congrats!! That’s an amazing accomplishment!

Chen said:
Congrats!! That’s an amazing accomplishment!

Thanks so much! I honestly didn’t think I’d make it when I started.

What was your approach? How much do you make?

Vesper said:
What was your approach? How much do you make?

I saved up what I could and settled with some creditors. I used bonuses and stock payouts to throw larger chunks at it instead of making small payments. It felt slow at times, but it worked for me.

I also set up automatic savings and other ways to move money before I could spend it. My income went from $60k a few years ago to $145k recently, which helped a lot.

@Kale
Did you negotiate with collections, or just pay what they offered?

Hayes said:
@Kale
Did you negotiate with collections, or just pay what they offered?

I negotiated with those who didn’t already offer 50%. Some agreed, others didn’t. One company even sued me, but after hiring a lawyer, they settled for what I had originally offered. It’s unpredictable how they decide.

@Kale
Just a heads-up, the difference between what you owed and what you paid might count as income, so you could owe taxes on it.

Hayes said:
@Kale
Just a heads-up, the difference between what you owed and what you paid might count as income, so you could owe taxes on it.

Yeah, I’m expecting my taxes to take a hit this year. Hoping my work bonus will help offset it.

@Kale
Just wanted to let you know—it’s frustrating when you think you’re free of debt, only to get hit with unexpected taxes.

Hayes said:
@Kale
Just wanted to let you know—it’s frustrating when you think you’re free of debt, only to get hit with unexpected taxes.

I really appreciate the heads-up. :pray:

This is incredible and really gives me hope.

Blake said:
This is incredible and really gives me hope.

You can definitely do it too!

How long did it take you? What kept you going?

Harlan said:
How long did it take you? What kept you going?

It was just over a year. Everything fell apart for me in late 2022, and I didn’t start tackling it until around April 2024. I avoided small payments because it felt too slow. Saving up and paying in big chunks worked better for me.

Congrats!

Parker said:
Congrats!

Thanks a lot!

This is awesome!! It gives me so much hope!!

Hadi said:
This is awesome!! It gives me so much hope!!

You’ve got this!! Keep at it.

Good for you! I paid off $12k this year and felt amazing, so I can only imagine how you feel. Great job!