I’ve got two credit cards that are maxed out—one at 23k and the other at 6k. I earn 76k a year and pay 1550 a month in rent, with no other big monthly expenses. Should I get a personal loan and stop using my credit cards? Or is debt relief a better option? I feel so stuck and don’t know what to do.
Look into debt relief options. Here in Canada, we have something called a consumer proposal, and I’m sure there’s something similar where you are.
It’s possible to pay it off in about 18 months if you’re disciplined (I have a similar salary and rent), but these programs can really help. Once it’s done, you can get a secured credit card and start saving again.
@Jai
Thanks for the suggestion! What exactly is a ‘secured’ credit card?
Tilden said:
@Jai
Thanks for the suggestion! What exactly is a ‘secured’ credit card?
It’s a credit card where you pay a deposit upfront as collateral. It’s a good way to rebuild your credit.
@Jai
Yeah, consumer proposals are definitely a solid option if you feel like the debt is too overwhelming.
At least you’re trying to figure it out. That’s a good first step.
Be cautious with debt relief programs. They’ll make your cards unusable and could affect your chances of getting a new card from the same companies.
Ari said:
Be cautious with debt relief programs. They’ll make your cards unusable and could affect your chances of getting a new card from the same companies.
Good to know—thank you!
@Tilden
No problem! It’s always worth asking the companies directly about your options.
You could ask your creditors about Hardship Programs or explore a Debt Management Plan (different from debt settlement). These can help lower or pause interest rates, which lets you pay off the debt faster and avoid hurting your credit.
@Atlas
Thanks for the advice!
Tilden said:
@Atlas
Thanks for the advice!
Glad to help. You’ve got this!
Can I ask how you ended up with 30k in credit card debt?
Rayne said:
Can I ask how you ended up with 30k in credit card debt?
It started after I got my first decent-paying job in tech. I never had a budget before and thought I could afford more than I actually could—vacations, extras, etc. When the debt grew, I ignored it, thinking I could handle it later. That just made it worse. I’ve realized now I need to learn how to manage money properly.
@Tilden
Got it. I’d suggest consolidating your loans so you can get a lower interest rate, like 5-7%. Try to avoid paying 20% interest on credit cards.
I have credit card debt and a personal loan totaling 20k. Does anyone recommend a good company for a consolidation loan? I’m not behind on payments but don’t want to fall into trouble. I get lots of mail offers, but I’m worried about scams. Any advice would help!