Lost my job… ended up with $9.6k credit card debt

Credit Card
1

I lost my job in December and had barely any savings—just $3k. I had to live off my credit cards to cover three months of rent, an unexpected $2.5k car repair, gas, groceries, and everything else.

Now I finally found a new job that pays $3,760 a month. I’ve cut back—only eating out twice a month, deleted all my shopping apps, canceled Netflix and Amazon Prime, cashed out my crypto and stocks, and even moved in with roommates to lower rent from $2,400 to $1,200.

I applied for part-time night shifts, but no luck so far. Personal loans got denied because of my income. What’s my best move now? And what happens if I just stop paying my credit cards?

2

Set up a budget and stick to it. Any extra cash should go toward your debt. Also, try to save a small emergency fund so you don’t end up using credit again.

3

Keegan said:
Set up a budget and stick to it. Any extra cash should go toward your debt. Also, try to save a small emergency fund so you don’t end up using credit again.

Should I start saving for the emergency fund first, or just put everything into paying off my credit card debt?

4

@Iman
Make minimum payments on your credit cards, cover rent and bills, then save up at least $1,000 as an emergency fund. Once you have that, throw everything extra at your lowest credit card balance.

I did this and paid off $14k last year. You can definitely do it!

5

@Tan
This plan makes sense. Since you’ve already cut spending, you should be able to save $1k pretty fast—maybe within a few months.

6

Look for a credit card with 0% interest on balance transfers. Some give you 12-18 months interest-free. I did this and it saved me a ton on interest.

Check sites like Credit Karma for offers. There’s usually a small fee to transfer (like $350), but that’s way less than the interest you’d be paying.

7

@Micah
Which card did you use? I tried doing a balance transfer with Chase, but they basically sold me on a useless card since you can’t transfer between Chase cards.

8

Iman said:
@Micah
Which card did you use? I tried doing a balance transfer with Chase, but they basically sold me on a useless card since you can’t transfer between Chase cards.

I used Discover and Amex. Both had good 0% offers at the time.

9

Iman said:
@Micah
Which card did you use? I tried doing a balance transfer with Chase, but they basically sold me on a useless card since you can’t transfer between Chase cards.

That happened to me too! Chase got me to sign up for a card I didn’t even need.

10

Same thing happened to me. I’m focusing on paying off my credit cards first because my score already took a hit from high balances and collections.

11

Zayn said:
Same thing happened to me. I’m focusing on paying off my credit cards first because my score already took a hit from high balances and collections.

I’ve never had anything go to collections before. If I can’t keep up with payments, will they sue me?

12

If you can at least make the minimum payments, do that to keep it from going to collections.

13

Noor said:
If you can at least make the minimum payments, do that to keep it from going to collections.

Right now, I’m making the minimum payments. Losing my job threw me into a bad spot, especially living in a city where everything is crazy expensive.

14

@Iman
You’re not alone. Just take it one step at a time. Dave Ramsey’s method helped me get on track.

15

Try picking up a side hustle or a part-time gig.

16

Shannon said:
Try picking up a side hustle or a part-time gig.

I’ve applied to everything I can think of, but no luck so far.

17

Iman said:

Shannon said:
Try picking up a side hustle or a part-time gig.

I’ve applied to everything I can think of, but no luck so far.

Maybe try Uber Eats, Lyft, or even washing cars and mowing lawns?

18

Call your credit card company and explain your situation. Sometimes they lower your interest rate or even give you a 0% rate for a few months.

19

If you have multiple cards, pay off the smallest balance first to free up money faster. If you only have one, just throw everything at it. It’s tough, but it’s worth it.

20

Try selling stuff online—eBay, Facebook Marketplace, Depop, whatever works.