Hey everyone, I’m a full-time student and also work full-time as a substance abuse technician. I’m graduating in the spring with a degree in addiction counseling, but right now, I’m struggling with $3500 in debt ($2300 is credit card debt and the rest from payday loans I took out when I was going through my own addiction). I’m finding it really tough to make my minimum payments and my credit score is 500, so getting a loan from the bank seems unlikely. Any advice on how I can handle this?
Honestly, $3500 isn’t that bad. Just pick up any job and you’ll be fine.
Forget the loan, just look for extra work. Even if it’s temporary. Day jobs, side gigs, anything to bring in some extra cash fast. Heck, sell plasma if you need to. If you live cheap and stick to a budget, you can knock out that $3500 quicker than you think.
@Linden
How much do you get for selling plasma?
Porter said:
@Linden
How much do you get for selling plasma?
It varies, but you could make a few hundred bucks a month depending on the demand.
Porter said:
@Linden
How much do you get for selling plasma?
I’ve heard around $500 a month in some places.
Definitely don’t take out another loan. You can’t borrow your way out of debt. Just keep making the minimum payments and focus on paying off the smallest debt first. I really recommend checking out Dave Ramsey’s stuff. He’s helped me a lot, and I was in some serious debt too. You’ll get there, just stay focused and don’t add to the problem with another loan.
@Tavi
Sometimes getting a bank loan to pay off payday loans can actually help though, especially with lower interest rates.
@Tavi
I almost fell into that trap myself and nearly took out another loan. Glad I didn’t, though!
@Tavi
If you can get a low-interest loan, and you know what you’re doing, it can work.
@Tavi
Dave Ramsey’s advice is outdated and doesn’t apply to most people anymore.
Broderick said:
@Tavi
Dave Ramsey’s advice is outdated and doesn’t apply to most people anymore.
I disagree. He’s updated his advice, but the basics of managing money haven’t changed. It still works if you stick to it.
@Tavi
He’s part of the corporate system, man.
Broderick said:
@Tavi
He’s part of the corporate system, man.
Yikes…
Broderick said:
@Tavi
He’s part of the corporate system, man.
Yikes…
Not really surprising if you think about it.
Honestly, $3500 isn’t a huge debt compared to what others face, so don’t stress too much about it. Definitely avoid loans. Like the others said, focus on building an emergency fund and then use whatever extra you can spare to chip away at the debt. Cut out any extra spending until it’s gone.
I’m 24 and in the same boat—school, full-time job, and about $4k in debt. It’s been tough, and I’ve struggled with depression, but keeping an eye on my budget helps me push through. You should check out Caleb Hammer on YouTube. His videos about budgeting really helped me get a handle on my finances. Also, don’t be afraid to call your credit card companies to negotiate lower interest rates or set up a smaller payment plan. I tried debt consolidation once, but it ended up being more expensive. You gotta do what works for you, but don’t make it harder on yourself by buying things you don’t need.
Why would you take out a loan to pay off debt? That’s like adding fire to fire.
Payne said:
Why would you take out a loan to pay off debt? That’s like adding fire to fire.
If you can switch from a high-interest payday loan to a lower interest bank loan, it’s a smart move. Sure, paying it off completely is best, but if that’s not possible, lowering the interest is a good step.
@Morgan
A credit union might have a good credit card with a low interest rate for balance transfers. Might be worth looking into, but OP’s credit score might be too low right now.