This is my first time posting, and I’m looking for advice. I’ve accumulated a significant amount of debt due to gambling, using cash advances and personal loans. I’ve since stopped gambling and am focusing on paying off my debts.
I managed to secure balance transfers on a few high-limit credit cards. However, my credit is currently in bad shape due to the high balances. One of my cards is approaching the end of its 12-month interest-free period in three months, and I still owe $12,000. I won’t be able to handle the interest if I can’t pay it off in time.
How can I come up with $12,000 in the next three months?
My monthly income is $5,000. Here’s my budget:
- Personal loans: $2,200/month (15 months left)
- Rent: $1,000/month
- Food, gas, and utilities: $500/month
- Credit card minimum payments: $1,000/month
This leaves me with $300 extra each month, which I either put toward my debt or use for emergencies. I have no savings.
I work nights in the restaurant industry (3 PM to 12 midnight) and have Sundays and Mondays off. I’m considering taking up bartending shifts on my days off and trying to flip items on marketplaces during the day.
Is there something else I could be doing to make better use of my time during the day?
The simplest answer is, honestly, to get a second job. In addition to working morning shifts before starting at the restaurant, you have two days off.
Yikes… I’m assuming your take-home pay is $5k a month.
First, consider picking up more shifts, gig work, or getting a second job. You won’t have any days off for a while. Next, try cutting down on your expenses for food, gas, and utilities. Make sandwiches, ramen, etc., every day, and switch it up so it doesn’t get too boring. There are subreddits that can help with budget meal ideas. For gas, it’s tough, but try to improve your mileage drive more efficiently, coast when possible, and stick to the speed limit. For utilities, turn off lights or water when you’re not using them. It might seem extreme, but every little bit helps.
You’ll need to put at least $4k per month toward your debt to pay it off in three months, but it might take more depending on how quickly you can pick up extra work. Afterward, keep going for a while longer to build up a nest egg. You don’t need to keep living on sandwiches forever, but it can help you get ahead. And stay away from gambling you’re risking more than just money. Remember how tough it is to live on a tight budget, work all the time, and save every penny.
What is your current credit score? To pay this off, you don’t want to work yourself into the ground.
Is it possible to use a credit consolidation in its place?
So your credit score is quite low, you could want to contemplate bankruptcy(you’ll be able to keep your house and car, as long as you have the cash to pay for them, they may give you new terms and rates though) or proceed with a credit consolidation.
Unless you are entirely against those, you can work your every waking hour and try to come up with that money, but that looks like it’s going to be incredibly tough
You could phone this credit card provider to inquire about any assistance programs they may offer (such as a temporary interest rate reduction).
Get a 0% interest promo credit card today and use it for everything to assist you extend your time. This will allow you to allocate a larger portion of your funds to this urgent necessity. You simply have to exercise enough self control to avoid making it a habit.
Thank you; unfortunately, I currently have no credit. In order to obtain a new card with a 0% balance transfer when I can, I’m attempting to pay off some debt.
Try not to transfer the balance if at all possible. If you get a 0% promo card with rewards, can make a little extra that way. Some have spend X amount in first three months for a few hundred dollars cash back.