I’m a college student making about $1000 a month. I’ve got around $12k in credit card debt at 18% APR, and I feel completely stuck. I can’t take on more hours at work because of my schedule. I was trying to make extra cash with sports betting, but obviously, that’s not a great plan. Right now, I have about $2500 in assets—$500 in savings, $500 in cash, $400 in stocks, and $1100 in my Roth IRA. What’s my best move?
How did you rack up that much? Gotta stop the bleeding first before you can dig out.
People here will tell you to just grind and pay it off, but I’ve been in your shoes and wish I had done this sooner—look into a debt management plan with American Consumer Credit Counseling. They can lower your interest rate to 5-10% and reduce your monthly payments. Once you graduate and start earning more, you can knock it out faster.
Do it now.
Also, all your credit cards will be closed in good standing when you enroll in the plan.
@San
I appreciate this 
@San
I used GreenPath for my plan… my rate was only 6%.
@San
Does this work for federal student loans too?
Skyler said:
@San
Does this work for federal student loans too?
If you used a credit card to pay off student loans, maybe.
Skyler said:
@San
Does this work for federal student loans too?
If you used a credit card to pay off student loans, maybe.
Starting to consider that, honestly.
Call your credit card company and ask for a referral to a nonprofit debt management agency.
Most will direct you to GreenPath, which can negotiate lower interest rates for you. My plan was $151 a month for 5 years at 6% interest.
You bring in $1000 a month. How much of that goes toward expenses? If you’re spending more than you make, nothing else will help until that changes.
Reagan said:
You bring in $1000 a month. How much of that goes toward expenses? If you’re spending more than you make, nothing else will help until that changes.
Thanks for this. My must-haves are only about $300-400 a month for groceries. I buy in bulk at Costco to make it last. Rent is covered, and I don’t really need much else. But even if I throw $600 at my debt, it still feels impossible to get ahead.
@Maddox
It would take about two years to pay it off, which is tough but doable. Some other options in this thread could help speed things up.
@Maddox
Look into hardship programs with your creditors or a debt management plan. It could lower your interest rates a lot.
With your income and that interest rate, it’s tough. You either need a lump sum loan from someone or a second job/gig work.
Call your credit card company and tell them you’re struggling financially. Ask for a hardship plan—they might offer a lower rate or let you freeze interest while you pay it down.
I helped my client wipe out over $45,000 in credit card debt. It’s possible.
How are people getting such low interest rates?
Jess said:
How are people getting such low interest rates?
Probably because they’re students.
Why not move this to student loans? They have lower interest rates, deferment, and better repayment plans.
Stop betting. If gambling actually worked, casinos wouldn’t exist.