Hello all,
I need some advice. I have never been financially literate and always have been very irresponsible with my money. I am tired of kicking myself all the time so I've decided to start learning about finances. I've learnt I'm on the lowest rung of the ladder, where I need to settle my credit card debts aggressively before even thinking about investing and saving.
I have two credit cards –
Credit card 1 – ~ $15,000 on it with more piling on due to not having a job currently and still having bills to pay like rent, car etc. (I can easily go back to my job because they still want me there but can't work right now due to work visa issues) I anticipate this going on for at least 4-6 months minimum.
Credit card 2 – $3,400 but the Interest doesn't kick in until May of next year. Promotional offer.
My wife has 4 credit cards with total balance of about $5,000.
I feel like I'm drowning. I'm in a financial mess. I can't ask my parents for more help as they're already helping me with other things, and that's a blessing in itself. I can't tell them about this situation and stress them out for me.
Is it wise for me to look into a personal loan with lower interest and consolidate my debts? Or do you all think I need to wait until I am back at my job and then consolidate? How would consolidation affect my credit score and future loans if I want to buy a house w my wife?
Please help. I'm just now waking up to my short comings. If I'm back at my old job I'd get back to $58,000 base pay pre-tax. My wife earns $62,000 a year. We already know we'll be very aggressive with the debt once we're both earning.
In a financial mess with mounting credit card debts.
byu/tzs0069 inpersonalfinance
Posted by tzs0069
2 Comments
If you have no income you’re going to struggle to get a loan. You need income. If you get a loans, you still need income. There’s no way out of debt except earning money to pay it off. Except bankruptcy, and there’s a different can of worms there.
A loan can have a small negative effect on credit score in the short term from initiating it and benefit in the long term by building a credit history. Your score is not the problem! Fix your debt and let credit score take care of itself.
I’d be careful with consolidation while you have no income. It can help, but approval and rates may be rough. Focus on minimums for now, pause new debt, then attack highest interest first once income resumes.