I’m $29k in debt, and I can pay around $2k each month towards it. Thinking about a debt consolidation loan to clear out these credit cards. Also, do you think it’s a good idea to work 90 days straight to catch up on debt?
My credit score just dropped to the 500s because of high balances, even though I’ve never missed a payment.
Any advice?
Why not just close the credit card accounts without the consolidation loan? What’s holding you back from canceling them to avoid more debt?
As for working 90 days, if you think you can handle it, go for it. Only you know your limits on work hours, though.
@Vesper
Life just all hit at once… I’m trying to find an apartment, pay down debt, and start two businesses. My score is low because of my credit balances. If I do get a consolidation loan, I’m definitely cutting up those cards and planning to stick to cash.
@Florian
Don’t close those credit card accounts! That will hurt your credit score big time!
Harley said:
@Florian
Don’t close those credit card accounts! That will hurt your credit score big time!
So should I just pay them off and keep the accounts open?
Harley said:
@Florian
Don’t close those credit card accounts! That will hurt your credit score big time!
So should I just pay them off and keep the accounts open?
Yes, keep them open with a zero balance. It boosts your score when they’re paid off but still open. Cutting the cards is fine, just don’t close the accounts.
@Florian
Starting two businesses right now might not be the best plan. Either you’ll need cash or credit to start them, and that might mean even more debt while you’re still working on paying off what you already owe.
Try taking a day off each week to recharge. You don’t want to burn out. Keep chipping away at the debt, and it’ll be gone eventually.
Leighton said:
Try taking a day off each week to recharge. You don’t want to burn out. Keep chipping away at the debt, and it’ll be gone eventually.
Good point. I’ll try to do some double shifts and keep a day off each week. Thanks for the idea!
Are you able to get a loan with your current credit score? And would the interest rate be better? Also, how would you manage working 90 days straight? In my state, they cap work at 6 days in a row.
Marlow said:
Are you able to get a loan with your current credit score? And would the interest rate be better? Also, how would you manage working 90 days straight? In my state, they cap work at 6 days in a row.
Yep, it would be overtime hours.
@Florian
Just watch out for burnout. I’ve seen folks go hard for a month or two, then need several days off to recover. Balance is key.
Marlow said:
@Florian
Just watch out for burnout. I’ve seen folks go hard for a month or two, then need several days off to recover. Balance is key.
I’ve done long stretches like this before, but it really took a toll on my health. Planning to push through till January and then take a real break.
Marlow said:
@Florian
Just watch out for burnout. I’ve seen folks go hard for a month or two, then need several days off to recover. Balance is key.
I worked seven days a week for 10 months. It was rough, but it helped our family get back on track and be ready for an unexpected pregnancy.
Avoid using loans to fix debt—it’s like pouring gas on a fire. Debt issues usually come from overspending, so tackle it by cutting back, earning more, and paying it off as quickly as you can.
Better to sort this out now before something else pops up.
@Zhen
Thanks for the advice!
Just focus on paying it off, no need to add more loans unless it’s a major interest saver.
Just keep at it, and stop if it becomes too much.
Shan said:
Just keep at it, and stop if it becomes too much.
I could use a miracle right about now 
If you’re taking home $2k after taxes, forget about a consolidation loan. Stick with your plan and put that money on the debt each month. You could have it cleared in about 15 months. Not advice, just what I’d do. You seem to know what you’re doing, so good luck!