I’ve got $60,000 in credit card debt split across four cards: two with $25,000 balances, one with $4,500, and one with $3,600. I’ve been unable to make payments on the two large cards for five months, with a combined payment of $1,300 per month. My husband has helped me keep up with the smaller ones since they’re easier to manage.
Recently, my grandmother passed away, and my mom offered me $10,000 to put toward the debt. I’m considering settling with the two large cards since my credit score is already wrecked. I’m desperate to fix this and make sure I never end up here again.
Edit: I know I need to get back to work—final interview this Friday. I know it’s easy to judge me since I’m just someone on a forum, but I was hoping for advice or shared experiences. Thanks to those who’ve offered constructive tips.
Sam said:
Can you share your income, monthly expenses, and details about the $10,000 gift? That’ll help provide better advice.
Our household income is $105,000 (all from my husband right now). Our monthly expenses total $6,345, or $5,045 without the two large credit cards. Before losing my job, I was making $3,000 a month. My mom offered $10,000, and I have a job interview Friday that could bring in $3,500 monthly.
@Zhen
If you can cut some expenses, you should be able to put around $2,800 a month toward your debt once you’re working again. Use the $10,000 to clear the smaller balances, then focus on the large ones. You could realistically be debt-free in about two years if you stick to this plan.
@Sam
Thanks for breaking that down. It’s encouraging to hear it’s possible within two years. I’ll work on tightening our budget and see where we can cut more.
I was in a similar situation and used a debt management plan (DMP) through a nonprofit. They reduced my interest rates significantly and lowered my monthly payments. Avoid debt settlement programs—they can hurt more than help.
Don’t let guilt or embarrassment stop you from getting the help you need. If debt settlement or even bankruptcy is the fastest way out, consider it. It’s better to move forward than stay stuck.
If you’re considering settling the large cards, call them and negotiate. They might accept a reduced payment to close the account, especially since you’re months behind. Get everything in writing before paying.
Cut up the cards, make a strict budget, and pull your kid out of daycare if you don’t get the job. This will save you $1,300 a month, which you can throw at the debt. You’ve got to focus hard for a couple of years.