I’m 28 and drowning in debt… what can I do?

Debt Management
1

I’m 28 years old and have $15,000 in debt. I make about $3,400 a month, but I live in California where rent costs me $1,600. On top of that, my credit card minimum payments add up to around $900 each month. After bills, I don’t have much left, and when I try to pay extra on one of my five cards, I always end up needing to use it again. It feels like I’m stuck in a cycle and not getting anywhere.

I’ve been looking into Freedom Debt Relief, but their plan takes four years, and I’d really like to pay this off faster. Any advice?

2

Try calling your credit card companies and asking if they offer a hardship plan. Some of them will lower your interest rate to something between 0% and 9% so you can focus on paying off the balance. The catch is you won’t be able to use the card anymore, but the savings on interest can really help you get out of debt.

3

@Hayden
Thanks for the tip! Quick question though… if I call and ask for a hardship plan but they deny me, could they flag my account and send it to collections? Or is that not something to worry about if I’ve been making minimum payments?

4

@Zan
Nope, that’s not how it works.

5

@Zan
No, they won’t do that just because you asked. Collections only happens if you stop making payments entirely.

6

Get a roommate. Or two. Or even better, move back in with your parents if that’s an option. A lot of people your age in California live with their parents to save money and avoid piling up debt. Free or reduced rent can make a huge difference.

7

Is bankruptcy an option for this?

8

Zeph said:
Is bankruptcy an option for this?

No, $15K isn’t worth filing for bankruptcy. Plus, it’s harder to file now, and you can only do it once in a long while unless you have special circumstances.

Try getting a roommate or moving somewhere cheaper. You can handle $15K.

9

@Paxton
Actually, you can file again after 8 years.

10

I was in the same boat not too long ago. Debt consolidation saved me. I couldn’t keep up with the interest on my cards. Now, I’m set to be debt-free by the end of 2026.

11

Pick up a side gig to tackle your debt. You could drive for Uber, do Instacart on weekends, or work retail during the holidays. It’ll be hard for a while, but it’ll get you out of this mess faster.

12

Your minimum credit card payment is $900 a month? That’s crazy. How much total do you owe?

13

Rin said:
Your minimum credit card payment is $900 a month? That’s crazy. How much total do you owe?

OP said $15,000, but $900 a month for that amount doesn’t add up. That’s way too high.

14

How is your payment $900 when you only owe $15,000? Something doesn’t seem right.

15

Maybe they mean they have multiple cards and the total minimum payments add up to $900? OP should clarify.

16

You’re making about $20 an hour. Maybe look for a better-paying job or put in some overtime. Another option is to negotiate with your creditors like others here suggested.