I’m a 25-year-old bartender trying to figure out how to tackle my debt. I have $7k in credit card debt and $3k saved, but I’m hesitant to use all my savings to pay it off. I make $1.5-2k every two weeks, but with $3k in monthly bills, I’m barely getting by. Any tips or advice on where to start?
I locked down my spending for 18 months—no partying, no extra expenses. I focused on learning to cook, playing video games, and just staying disciplined. It was tough, but now I’m debt-free. Totally worth it in the long run.
@Tristan
That’s awesome! I started cooking at home too. Now I make better fried rice than restaurants for a fraction of the price. Plus, I have friends over and we all save money.
I’ve been stuck in the paycheck-to-paycheck cycle too. It’s tough, but making sacrifices like not eating out and sticking to a strict budget helps. Check out budgeting books at your local library—Broke Millennial by Erin Lowry was super helpful for me. I also use the snowball method to pay off smaller debts first. You’ve got this!
Be glad it’s only $7k. If you can manage $500 a month toward it, you’ll be out of debt faster than you think.
Start with a $1k emergency fund, then use the snowball method to pay off your smallest debts first. Keep throwing everything extra at your debt, and don’t give up. You’ve got this.
Finn said:
Start with a $1k emergency fund, then use the snowball method to pay off your smallest debts first. Keep throwing everything extra at your debt, and don’t give up. You’ve got this.
I agree. Also, take a closer look at your spending. Where’s that extra money disappearing every month?
Finn said:
Start with a $1k emergency fund, then use the snowball method to pay off your smallest debts first. Keep throwing everything extra at your debt, and don’t give up. You’ve got this.
Dave Ramsey’s plan isn’t for everyone, but it’s worth checking out for a step-by-step guide.
Your next step is creating a written budget focused on debt repayment. List all your expenses for the past month, divide them into needs, wants, and savings. You’ll be surprised how much you spend on small things that add up. Stick to the budget, focus on paying down debt, and keep your savings as a cushion.
Keep that $3k saved—it’ll help you sleep better at night. Write down all your expenses so you can see where your money is going. Cut unnecessary spending and focus on paying down the debt. Debt is more than just numbers; it’s emotionally draining too. Don’t let yourself fall back into it.
Start with a detailed budget. Decide whether you want to tackle the smallest debt first (snowball method) or the one with the highest interest (avalanche method). Use your savings wisely—don’t drain it all at once. If you can, increase your income with extra shifts or side gigs.
Pay it off as fast as you can. Sleep on couches if you have to. Debt doesn’t disappear on its own.
Consider reaching out to a nonprofit credit counseling service. They can help you create a plan to pay off your debt and reduce interest rates. Just make sure the company is reputable before signing up.
Start by tracking your spending. Even small purchases add up over time. Paying in cash might also help—you’ll feel it more when you’re handing over actual money instead of swiping a card.
You need to boost your income. Try picking up a day job while bartending at night.
- Keep $1k from your savings for emergencies, then use the rest for your debt.
- Cut all unnecessary spending.
- Work extra hours if you can—it’ll make a big difference.
- Once the debt is gone, focus on building a 3-6 month emergency fund.
Write a budget to see where your money is really going. Once you know, cut back on unnecessary spending. You might also look into transferring your credit card balance to a 0% interest card to save on interest while paying it down.
If you share your budget, people can help you better. Can you cut costs, work more hours, or even move somewhere cheaper? What got you into this debt, and how can you avoid it in the future?
Write out your budget in daily or weekly segments if it helps you stay on track. Even just having no-spend days can make a difference.
Check out Dave Ramsey’s baby steps program. It’s all about discipline and cutting expenses while increasing income. With your current income, you can get out of debt fast if you stay committed.