Hey everyone, I’m 23 and sitting on $25,000 of unsecured debt—$21,000 from 6 credit cards and $4,000 from a personal loan. I just finished college and will earn around $60,000 next year. I’m not sure if I should grind it out and pay it off or file for bankruptcy to reset. Any advice?
I’m living at home, so no rent or grocery costs. My only big expense is a $450 monthly car payment.
I have way more debt and am about to file for bankruptcy, but I think your situation is manageable. Make a solid budget and focus on paying it off. It’ll help you keep your credit intact, which is super important later. You got this!
If you’re in a hole, stop digging. Get rid of the credit cards and start paying off that debt. You should be able to throw $1,000 a month at it and clear it in less than two years. Congrats on graduating and landing a good job!
@Lennon
Totally agree. Bankruptcy sticks to your credit for at least 7 years. Try the snowball method: pay minimums on all but one, then hammer that one until it’s gone.
Don’t file—you can do this! I had $23k in consumer debt and $70k in student loans while earning about what you’ll make. I paid rent and utilities too. Create a budget, give yourself a small allowance for fun, and snowball your debt. It feels overwhelming now, but you can tackle it!
The idea that bankruptcy is a solution for overspending is dangerous. If your take-home is $3,500 and your bills are only $450, you can clear this debt within a year by living frugally. Bankruptcy would mess up your credit for years. Do you want a quick fix or to build a stable future?
@Marin
You’re right—I think I’m just overwhelmed by the number. I know I can pay it off by next year if I focus on it.
Zyler said:
@Marin
You’re right—I think I’m just overwhelmed by the number. I know I can pay it off by next year if I focus on it.
Exactly. Plus, bankruptcy could hurt your career options, especially if employers run background checks. It’s not worth it for this amount of debt.
Zyler said:
@Marin
You’re right—I think I’m just overwhelmed by the number. I know I can pay it off by next year if I focus on it.
Leave this post up—it’ll help others who are in the same boat. You’ve got this!
Zyler said:
@Marin
You’re right—I think I’m just overwhelmed by the number. I know I can pay it off by next year if I focus on it.
Break it down into smaller goals. Look into 0% balance transfer credit cards to stop the interest from piling up. It’ll save you some money as you pay it down.
@Marin
You don’t know what they spent it on—maybe it was for something essential. But $25k isn’t enough debt to justify bankruptcy. It’s better to pay it off.
Channing said:
@Marin
You don’t know what they spent it on—maybe it was for something essential. But $25k isn’t enough debt to justify bankruptcy. It’s better to pay it off.
Even if it was essential, bankruptcy should only be a last resort. With $3,000 left after bills each month, it’s better to tackle the debt and move on.
@Marin
Bankruptcy should always be the last option.
At your income, bankruptcy probably isn’t an option anyway. Why did you take on so much debt in college? Use this as a chance to learn about budgeting and pay it off. It might be hard, but it’s worth it.
@Paden
That debt covered tuition and living expenses during school. I couldn’t get approved for student loans but managed to get credit cards.
Zyler said:
@Paden
That debt covered tuition and living expenses during school. I couldn’t get approved for student loans but managed to get credit cards.
That’s tough. Try the snowball method: focus on paying off the smallest debt first, then roll that payment into the next one. You’ll build momentum and clear the debt faster.
Zyler said:
@Paden
That debt covered tuition and living expenses during school. I couldn’t get approved for student loans but managed to get credit cards.
Bankruptcy doesn’t erase all debt. Plus, it’ll wreck your credit for years. Since you’re living at home, use that advantage to pay it all off.
Take advantage of living at home and put all your extra cash into paying down the debt. You’ll get through it quickly and keep your credit intact.
You’ve got no expenses. Pay off the debt—it’s doable in less than a year.
Bankruptcy can haunt you for years. It affects more than credit cards—things like renting apartments, getting loans, and even some jobs. Cut up the cards, get a budget, and pay it off while you’re living at home.