I’m 24 and sitting on about $33k in credit card debt. I moved out a little over two years ago, and while I make okay money, I’ve had pretty bad spending habits. For the past 6 months, I’ve been trying to change that. According to a debt repayment calculator, it’s going to take me around 6-7 years to pay this off, and a big chunk of that will just go toward interest.
This mess is entirely on me. When I was 18, my grandma passed away. My grandpa sold her house and split the money among the family. My parents held onto my $30k share, planning to give it to me for a down payment on a house someday. But with the way things are going, I doubt I’ll be ready to buy a house anytime soon—probably not for another 8 years or so.
Here’s the thing. My parents don’t know about my debt. They actually think I’ve saved up a decent amount of money. Lately, things have been getting harder, and I’m seriously thinking about coming clean and asking if they can use that $30k to help me clear most (if not all) of my debt so I can start fresh. What would you do in my place?
Try calling your credit card companies and see if they offer any hardship programs. Some will temporarily lower or even pause interest for a while.
Honestly, I’d be a little hesitant to use all of your $30k on paying off credit cards. It really depends on the interest rates and whether your credit card companies are willing to work with you. If they won’t budge and the interest is crazy, paying it off with the $30k might make sense. Just make sure you change your spending habits so this doesn’t happen again.
@Dawson
I tried that with one of the cards, but they denied me since I’ve been making on-time minimum payments. The other card offered to lower my rate from 24% to 8.99%, and I’m thinking of taking it.
@Avery
Definitely take the 8.99% deal. I’d also focus on paying off the one that denied you since it’s not giving you any breaks. Go through each card, see what offers they give, and decide whether it’s better to pay them off or stick to payments.
@Dawson
Yeah, it’s just the two cards—both with a little over $16k. The Apple card is at 25% interest, and the Amex is offering 9%. I’m thinking of making minimum payments on the Amex and throwing everything I have at the Apple card since that interest is killing me.
@Avery
Could you ask your parents for part of the $30k to pay off the Apple card? That way you’d still have some money left for a future down payment and also get rid of the high-interest debt.
The risk with using the $30k is that if you haven’t fixed your spending habits, you might end up in the same situation down the road. Grinding it out and paying off the debt yourself could help you develop better habits.
Living frugally for a while might be tough, but it could be what you need to avoid repeating this.
@Zuri
I’m still paying off debt myself after making bad choices with money. I agree—grinding it out can be tough, but once you get through it, you’ll be in a better place and hopefully avoid these mistakes in the future.
This is a financial emergency. You’re losing money every month to interest. If I were you, I’d talk to your parents about using the money to pay off the debt. There’s nothing wrong with asking for help.
If they can’t help, look into hardship programs or debt management plans. These programs lower interest rates or suspend them temporarily, helping you pay off debt faster and avoid more financial trouble.
Before you do anything, set up a budget and track every penny you spend. It’s important to know exactly where your money is going so you can figure out where to cut back. Once you have a clear picture of your finances, you’ll be in a better position to come up with a plan.
It’s going to take time, but the lessons you learn here will help you for the rest of your life. You’re still young, and you can get through this. Good luck!
Check out Dave Ramsey’s debt snowball method. We started with that and managed to pay off over $200k, including our house, in 5 years. It really changed how we think about money.
Maybe let your parents hold onto the $30k and work on paying off the debt on your own first. It’s doable.
@Caden
Like Dave Ramsey says, if you need to, get a second job or pick up some side gigs. We even did a garage sale last summer, and the extra money helped us pay off a credit card.
Ask for the money—it’s yours. Pay off the debt, but make sure you learn from this. I’ve been in a similar spot, and now I’m only two months away from clearing $30k of credit card debt. Haven’t touched a card in years.