How can I pay off $15,000 credit card debt quickly?

EDIT: I’ve started selling the unnecessary stuff I bought with my credit cards. I should have the Apple Card paid off by the end of this month. I’m also putting the Discover card on a lower interest payment plan and plan to tackle it aggressively.

This is the most debt I’ve ever had, and it’s overwhelming. My impulse spending has put me in this situation. I’m 23, earning $4,000 a month in finance, but I feel stuck.

I have two credit cards:

Apple Card (27.24% APR): $3,987.66 balance
Discover Card (26.24% APR): $12,210.74 balance

I have no savings, but I’m using YNAB to budget, which is helping a bit. Here’s my current monthly budget:

-Car insurance: $200
-Car payment: $355
-Student Loan: $185
-Pet: $100
-Subscriptions: $70
-Self care (haircut): $60
-Rent: $1,800 (moving to $700/month in May 2024)
-Electric: $120
-WiFi: $56
-Gym: $38
-Gas: $120
-Groceries: $250

I tried getting a balance transfer card, but my credit score (650) and high utilization got me denied. I’ve paused contributions to my Roth IRA and 401(k) to free up money. I’ve thought about a debt consolidation loan but don’t know where to start.

Any advice on how to approach this? Thanks a lot for reading.

Your income is $4,000/month, and your expenses are $3,354/month, leaving you $646 left. Over a year, that’s $7,750.

If you put all that towards your debt, you could get out in about three years, even with interest. It’s doable, but you’ll need to stay disciplined.

@Ash
Exactly this. But to speed things up, consider getting a second job. Also, think about selling your car and getting a cheaper one. That alone could free up a lot of money for your debt.

@Ash
Your math is off. Interest compounds monthly.

Uma said:
@Ash
Your math is off. Interest compounds monthly.

The APR already factors in monthly compounding. The difference will be minimal compared to the challenge of sticking to a plan. Feel free to do the detailed math if you like.

@Ash
If they’re relying on credit cards as income, they’ll likely need extra income. Cutting spending completely for three years isn’t realistic. A second job might be necessary.

Focus on paying off the Apple Card first. Consider pausing your gym and subscriptions temporarily to free up extra cash. How much do you still owe on the car, and what’s its current value?

Mai said:
Focus on paying off the Apple Card first. Consider pausing your gym and subscriptions temporarily to free up extra cash. How much do you still owe on the car, and what’s its current value?

I just got a 2023 Civic because my old car broke down. I’ve only made one payment, and I owe $18,300. It’s probably worth slightly less than the $29,500 I paid.

@Kingsley
Did you really buy a brand-new car while being $15k in credit card debt? That’s tough.

Mai said:
@Kingsley
Did you really buy a brand-new car while being $15k in credit card debt? That’s tough.

It wasn’t exactly like that. I was gifted a car, but it wasn’t economical, so I traded it in for this one.

You’re doing fine. At 23, I was just figuring things out too. Until you move into a cheaper place, it’ll feel slow, but don’t lose hope.

When you move, use the extra $1,000 wisely. Pay off the Apple Card first, then snowball the payments. Look into balance transfer options when your credit improves.

@Dexter
Thanks for this. Do you have tips on avoiding impulse spending? I need to fix my habits before May.