@Kiernan
Thanks for explaining. Info on bankruptcy is hard to piece together. I didn’t know there was an asset cap. I was worried they’d take things like my laptop, which was a gift.
Get a job that pays $50k. That’ll solve most of your financial issues 
Cody said:
Get a job that pays $50k. That’ll solve most of your financial issues
I love my job. I earn a good hourly rate and work very little, which lets me focus on music. My debt is from education and career investments. Making $50k would help, but it would mean giving up my time and passion. I’m just asking if debt consolidation is worth it.
@Tan
At your income level, lenders might not offer consolidation loans. If you made $50k, you could pay off your debt in months instead of years.
Cody said:
@Tan
At your income level, lenders might not offer consolidation loans. If you made $50k, you could pay off your debt in months instead of years.
I get your point, but my lifestyle isn’t about maximizing income right now. I value the time I have to pursue music. I did get approved for debt consolidation, but the payments were about the same as what I’m paying now.
@Tan
If it’s the same payment, why not just pay it off faster? The quicker you’re debt-free, the more freedom you’ll have.
Cody said:
@Tan
If it’s the same payment, why not just pay it off faster? The quicker you’re debt-free, the more freedom you’ll have.
I don’t see it as torture. My priorities are time and health right now. Finances are about more than numbers!
You’re paying the minimums, right? Just keep going and try to reduce your living expenses.
Remy said:
You’re paying the minimums, right? Just keep going and try to reduce your living expenses.
I’ve never missed a payment, but $400 a month is a lot. I’ve been living in a van to save money, but I’ll need to start paying rent soon.
Build a small emergency fund first, like $1000-$1500. That way, you won’t have to put unexpected expenses on your cards. Then start tackling your debt.
Wendell said:
Build a small emergency fund first, like $1000-$1500. That way, you won’t have to put unexpected expenses on your cards. Then start tackling your debt.
I think my income is the real problem, not my score—it’s around 750. I’ll focus on saving now.
If your credit is good, consider a personal loan to pay off your cards. Just make sure the rate is lower. Otherwise, keep transferring balances to 0% APR cards. You could also look into hardship programs with your lenders to lower interest rates. Bankruptcy is an option, but $12k isn’t a lot of debt, and it’ll hurt your score for years.
@Tegan
Bankruptcy doesn’t seem necessary. I’ve been using 0% APR cards but can’t pay them off in time, so I get hit with interest. A personal loan might be better, but my income makes it tough to qualify.