@Huxley
Avoid those consolidation companies. Go to a credit union and ask about personal or home equity loans.
Credit unions are member-owned, so they’re usually more flexible with loans.
@Huxley
If you don’t want to sell, then increasing your income is your best bet.
Look for a lower interest card and move the balance over. Stay disciplined, and you can knock this out in a couple of years.
You seem to have things under control. The snowball method worked well for me, so paying off the $4k card first sounds like a good plan. If you can get a 0% balance transfer card, even better.
Ever thought about getting a roommate to help with costs?
Also, how much are you putting into your 401k? Is there a company match?
@Lyle
My credit score is 690, so I doubt I’ll get approved for a 0% card. A few people mentioned credit union loans, so I’ll check that out.
I haven’t had a roommate in years, and I don’t think I’d want one unless it’s my only option.
@Huxley
I get that. I wouldn’t want a roommate either.
If you’re contributing more than what your employer matches, you might want to reduce it for now and put that money toward your debt.
You seem to know what’s going on, so I wouldn’t stress too much.
If you keep going like this, it’ll take you over 6 years to clear the debt, and you’ll pay about $13k in interest.
Try increasing your income or cutting costs. Renting a room for a year or two could pay this off fast. Maybe also lower your phone bill—it seems high.
I was in a similar spot a couple of years ago, earning $38k. I used a service called National Debt Relief. They handled everything, and even if I got taken to court, they had lawyers to deal with it. I only saved about $2k, but it was worth the peace of mind.
Focus on paying down the 25.5% card first. Your mortgage plan sounds great—finishing it by 38 is impressive.
I personally hate carrying any debt. I pay off my cards monthly, don’t have any loans, and only spend what I can afford.
Here’s what I’d suggest:
- Stop any investments unless they’re earning more than 18% because that’s what you’re paying on your highest-interest card.
- Try to find cheaper car insurance.
- Consider a roommate to cut housing costs.
- Check out food banks or cook in bulk to lower grocery costs.
Your mindset is great, and throwing your bonus at the credit cards is a solid move. You got this.