Looking for advice… I have over 200k in credit card and loan debt. The interest rates are brutal, ranging from 20-30% per year.
I’m in my early 30s, making about 165k after taxes. I try to make payments, but it feels like the debt just keeps growing.
What’s the best way to start bringing this down?
You make a lot of money, but you need to stop spending on anything unnecessary and throw every extra dollar at the debt.
Denali said:
You make a lot of money, but you need to stop spending on anything unnecessary and throw every extra dollar at the debt.
The most straightforward answer 
Honestly, it might be worth talking to a bankruptcy attorney. You probably wouldn’t qualify for Chapter 7, but you could look into Chapter 13.
I was in a similar situation—high credit card debt, decent income, but no real way to get ahead. It may not be the right option for you, but it’s good to explore all possibilities.
Check out the bankruptcy section on this forum too. Hope it works out for you.
You might want to check out credit counseling services. They usually charge a small fee per account, but they work with credit card companies to lower your interest rates and monthly payments.
I was paying around $2300 in minimum payments. Now I’m paying $916 a month over 58 months, and it feels like I can finally breathe.
They’ll also help you set a budget and review your spending, which was a huge wake-up call for me.
@Ellis
Which service did you use? This is really helpful. I always thought most of these were scams.
Sloane said:
@Ellis
Which service did you use? This is really helpful. I always thought most of these were scams.
A lot of the for-profit ones are scams. Look for non-profits—check out: https://www.nfcc.org/
With that much debt at 25% interest, you’re probably paying over $4k a month just in interest. If your minimum payment is around $5k, only $1k is going toward the principal.
I’d recommend looking into credit counseling. They can reduce your interest rates and lower your payments. DebtWave and GreenPath are two solid options.
Interest rates in the US are crazy. I won’t even consider taking on a loan if the rate is higher than 4.5%, and even that feels high.
Orion said:
Interest rates in the US are crazy. I won’t even consider taking on a loan if the rate is higher than 4.5%, and even that feels high.
Credit card debt is such a trap. It should be illegal to charge these kinds of interest rates.
Debt is basic math—money in, money out. You need to make more, spend less, and sell anything you don’t need.
If you lived on 65k a year, you could pay off 200k in two years. But it sounds like you’ve been living off way more.
Are you willing to admit you have a spending problem?
@Cassidy
Yeah… probably. I spend a lot on alcohol and partying.
Micah said:
@Cassidy
Yeah… probably. I spend a lot on alcohol and partying.
Then your real problem isn’t debt—it’s the lifestyle. The debt is just a symptom.
Micah said:
@Cassidy
Yeah… probably. I spend a lot on alcohol and partying.
Then your real problem isn’t debt—it’s the lifestyle. The debt is just a symptom.
That was kinda harsh. Instead of calling him out, maybe we should ask why he’s spending so much on drinking?
@Fin
This is a forum, not a therapy session.
@Fin
It wasn’t harsh. Just straight to the point. If OP thinks drinking and partying are part of the issue, that’s something to work on too. I had to cut back on my own bad spending habits before I could fix my finances.
@Fin
As the great Carol Kane once said in Scrooged… some people need a slap in the face.
Look into refinancing the debt for a lower interest rate.
And be ready to live on rice and beans for a while.
Spend less, make more, and throw every extra dollar at the highest interest debt first. Forget about investing or saving until this is gone.
Pay the minimum on all but the smallest loan, and throw everything at that one until it’s gone. Then move on to the next.
And stop using credit cards completely.