What’s the best way to start paying down my debt… advice?

Seeking Advice
1

Hi all, here’s my debt:

Loan: $4777.43 at 39% interest

Visa RBC: $4906 (Limit $5000) at 20.99% interest

MasterCard Rogers: $3058 (Limit $4500) at 19% interest

MasterCard Capital One: $122 (Limit $300)

Affirm Amazon: $129 remaining

I’m also in school, so I don’t work full-time, but I make $1300 cash every two weeks, so that’s about $2600 monthly.

Plus, I’ll get $1900 from a scholarship soon (not a loan).

What’s best to pay off first? That $4777.43 loan with the 39% interest is stressing me out so much.

EDIT: I live with my parents, so I have no expenses. I hardly go out, so yes, my paycheck is all going to debt.

2

Wow, 39% interest is wild. I’d hit that one first, no question.

3

I’d knock out the small debts first and then focus all my energy on that 39% loan. Btw, what other expenses do you have?

4

Keegan said:
I’d knock out the small debts first and then focus all my energy on that 39% loan. Btw, what other expenses do you have?

I forgot to say, I have no expenses! Living at home with my parents has been a huge help, and I’m 28F.

5

I’d suggest the debt snowball method. List your debts from smallest to biggest. Pay the minimums on all except the smallest one, and throw whatever extra you have at it. Once that’s done, use that payment toward the next debt, and so on. It really helps you feel like you’re getting somewhere.

A budget might also help keep things from piling up again.

6

@Emory
That’s actually a great idea, thanks a lot! I’ll give it a go!

7

Can you maybe get a second job?

8

Kieran said:
Can you maybe get a second job?

Nah, not enough time. I make around $3600 a month, plus no expenses—just my debt. I don’t have a car, no rent, nothing extra. I’m also getting a $1700 scholarship this week, so I’m working full-time and studying full-time right now.

9

Have you thought about moving the credit card debt to a 0% interest card? Then you could focus more on the loan.

10

Vince said:
Have you thought about moving the credit card debt to a 0% interest card? Then you could focus more on the loan.

Hmm, how would I do that exactly?

11

You could try asking for a lower interest rate on the loan. One of mine went from 30% to 10% for 6 months, which gave me more room to pay it down.

12

Nico said:
You could try asking for a lower interest rate on the loan. One of mine went from 30% to 10% for 6 months, which gave me more room to pay it down.

Do I have to call them directly? I’m not sure they’d actually lower it just because I ask.

13

@Kim
Yep, I gave them a call and just said the rate was too high, and I couldn’t keep paying it at that level (I could, but I just said whatever I had to). They offered to lower it for 6 months, so now most of what I pay goes straight to the balance instead of the interest. Been sticking to it hard ever since.

14

@Nico
Alright, I’ll give it a shot tomorrow. Thanks for the tip :slight_smile:

15

Gotta ask… why’s that 39% loan so high? What was it for?

16

Parker said:
Gotta ask… why’s that 39% loan so high? What was it for?

Yeah, I know… I wasn’t thinking straight in my last relationship, and it was to fix my ex’s car. Live and learn.