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?
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.
@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?
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.
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.
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.
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.
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.