I really need some advice… Am I handling this right? Please let me know if there’s anything more I can do.
I’m working two jobs. Job 1 is from 4am to around 9 or 10am, and I make $21 an hour. Job 2 is from 9 or 10am to 5:30pm, and I make $16.25 an hour, plus 33 cents per mile, and I average 150-200 miles a day driving for the job.
I plan to do overtime with Job 1 when it’s offered in November and December (probably 12-16 hour days).
I’ve got two credit cards—one has a $4k balance with a 29% interest rate, and the other is just under $6k with a 28% interest rate.
Am I doing okay? I live with my family and pay $300 a month for my small space. I don’t spend much money, and I got into this debt for personal reasons, but I want out so badly.
What else can I do to get out of this mess?
P.S. I’m not including my car debt (around $2500) or phone/mattress debt (just under $1500). The credit card debt is my main concern.
It’s good you have two jobs, but it’s hard to give specific advice without knowing how much you’re making after taxes and how much you’re putting towards your debt each month. If your only big expense is $300 rent, then throw everything you can at the debt. Start with the $6k card (28% interest), then focus on the $4k card (29% interest).
If you can pay at least the minimum and add an extra $2k each month, you could be out of credit card debt in about a year.
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It’s a long story. I moved in with my ex-girlfriend, but she didn’t help at all with cooking or organizing the place, so I ended up spending two months buying takeout. Then she tried kicking me out, so I had to stay at my mom’s for a bit without working. It got worse when she tried getting a restraining order, so I had to spend more time in hotels and staying with my mom, all while paying for food and legal stuff to fight it in court. I eventually proved my innocence, but I was depressed, didn’t work for a while, and made some bad spending choices. That’s how I ended up with $14k in debt. I’ve already paid off $4k using crypto, and now I’m working hard to pay off the rest.
Focus on paying the minimum on the $4k card and put everything else toward the $6k card. Once that’s paid off, you can focus more on the $4k balance.
Looks like you’re making around $5k a month, so you should be able to knock out the $6k balance in 2-3 months and then take care of the $4k balance in 1-2 months after that. Once it’s all paid, close those accounts if you’re not using credit responsibly. Interest can be brutal if you’re carrying balances.
After that, save up for an emergency fund—at least 6 months of expenses—and put it in a high-yield savings account.
Shouldn’t I focus on the $4k first since it has the higher interest rate? I’ve been using credit cards responsibly for six years, but I got into debt recently due to life events.
Have you thought about reaching out to a non-profit debt management company? They can negotiate with your credit card companies to lower your interest rate for a small monthly fee. Your credit score might take a hit, and they’ll likely close your accounts, but it’s worth considering.
Check out the National Foundation for Credit Counseling (NFCC) or the Financial Counseling Association of America (FCAA) for help. They’re both federally vetted and can guide you through the process.
Start by creating a budget with your income and expenses. This will help you figure out how much you can pay toward your debt each month. You can also use tools like the credit card payoff calculator on bankrate.com to see different payment scenarios. It’s really important to stop using your credit cards completely until your debt is paid off.
Wait, are you getting 33 cents per mile for your job? If you’re using your personal car for work, you’re getting underpaid. The IRS reimbursement rate is 67 cents per mile. You should definitely look into this. They owe you for all those miles you were underpaid.
Maybe you could apply for a credit card with a 0% interest promo and transfer the balances from your high-interest cards. That would make it easier to pay down the debt.
