using throwaway for privacy reasons. im 28 working as librarian and also do some freelance tech support work in weekends. main job gives me around 35k per year but tech work has been really slow lately maybe 800-900 monthly when i can find clients
my regular income from library is about 2400 monthly after taxes. combined with occasional tech work maybe 3200-3300 total but its not reliable anymore
right now i have 8 credit cards with total debt around 45k. monthly minimum payments eating up almost 850 of my income. also have personal loan from couple years back when i had some emergency expenses – still owe about 12k on that one. rent is 1100 monthly for small apartment
assets wise i have older car worth maybe 3k and about 8k in savings account. no investments or anything fancy. been single for while so just supporting myself but still struggling
problem is im using most of library salary just to make minimum payments and hoping tech work covers rent and living expenses. some months when clients are slow i have to put groceries on credit cards which makes everything worse
feeling pretty stuck here and not sure how to break this cycle. anyone been in similar situation? looking for practical advice not judgment about past decisions
28 years old drowning in credit debt need real solutions please
byu/Imaginary_Egg_5773 inpersonalfinance
Posted by Imaginary_Egg_5773
9 Comments
Watch Velocity Banking videos on YouTube. Fast ways to pay down debt.
I don’t mean to oversimplify this, but a season of hard grinding may be in your future. Library hours leave the evenings open for some side work, even if it is another job on top of the tech work. May add another 1-1.5k or so. Depending on balances, you could snowball method it. Or if it would be more advantageous, perhaps consider consolidation. I like snowball because it gives you breathing room as you progress.
Time to get after it, but you can do it! Simple meals, a gym and netflix subscription, and 6 months you’ll have some real movement.
Also, how many rooms does your apartment have? Not sure if you can rent out a room or even room share for a short time. Not ideal, especially already having had your own space, but an option.
Step 1 is figure out your budget. Those charges didn’t come out of nowhere so you’re living beyond your means in some way. Write down your expenses (bills, gas, groceries, utilities, insurance, subscriptions, etc) and your take home pay.
Step 2 will be cutting out the stuff you don’t need and reducing the stuff you do. Stop eating out, reduce the cell phone and internet plans, cancel streaming services, etc. You’re going to be living like a monk for a while. basic, home cooked meals, using the library and parks for entertainment, etc.
Step 3 will be listing out all of your debt. The amount of each individual card/loan, their interest rates, monthly payments, etc. Plug them in [here](https://unbury.me/) or into a similar debt repayment calculator.
Step 4 is going to be using about $7k of your savings to start paying the debts. There’s no point in having money in the bank earning 1-3% when you have credit cards costing you +20%. You will want to keep some savings to cover emergencies. Hopefully that $7k can eliminate something.
The debt repayment strategies are avalanche and snowball. You pay the minimum’s on all debt, but then target one to make additional payments on until it is gone and then you move onto the next, now with more money since one debt is gone. Avalanche targets the highest interest rate first where snowball goes after the smallest debt first. There’s pros and cons to each.
The final step is increase income somehow. I know you technically already have two jobs, but taking on a temporary part time job may help until this is all cleaned up.
The bonus step would be debt transfers to lower interest debt. 0% transfer cards, debt consolidation loans, etc. These don’t do anything on their own and can make snowballing debt repayment harder, but if you can find a lower interest rate then that may help accelerate things. Getting qualified for one with favorable terms, however, can be difficult so proceed with caution.
make more and spend less. even if u have no debt now 35k/yr is one emergency away from debt
talk to all of ur banks now see if can get a better payment plan, lower apr, or even a loan discount.
How many hours a week do you work at the library? Where do you live that you can afford to make 35k a year?
You’re gonna need a second job. A regular second job. Be it in the evenings or weekends. Whatever schedule is compatible with your schedule.
I would recommend repaying some of CC debt, for example, and immediately asking the bank to reduce this CC limit to this amount, also, try to cut the number of CCs to at least 6 instead of 8 this year and 3-4 cards instead of 8 next year
If you enjoy your work at the library, try writing some short stories/articles for magazines
Fitzgerald did this while spending his time in France and was paid X40 of a teacher’s salary in 1930s
Also, consider learning more IT skills/ collaborating with Tech Recruitment agencies for gigs
I am not a financial advisor or anything related, I’m just speaking from a personal (similar) experience.
I won’t get deep into specifics but about a year ago I was in the same predicament. Sky high debt(approx. 50k+) barely getting by due to cc minimum payments, student loans, & Klarna/Affirm payments every month whilst steady keeping track of collections debt. I’m working an almost decent job, but with a grateful amount of overtime. Still drowning miserably trying to stay afloat. Haven’t even factored in bills & day to day expenses and/or mishaps but anyways.
Solution, or I guess what worked best for me:
Learned about Chapter 7 bankruptcy —completely on my own. I dedicated as much time as I possibly could to understand what it truly meant to go bankrupt. UpSolve was my best friend. Hours, days, weeks, months on end of research, printing paperwork, FILLING OUT paperwork. Back and forth trips to the post office and home because of course I was missing some sheet that was on a different link on the most confusing government website I have ever navigated. By the way, I’m saying all this just to give you an idea of what things *could* be like if you happen to take this route. Take time to understand what you’re reading before ink hits paper. I googled probably 100+ sentences word for word with “simplify” at the end of the search, no exaggeration. It’s a long process behind the scenes also. Days of waiting on responses, confirmations, emails — lots of emails, physical mail, etc.
But At the end of the day, the day gotta end.
Couldn’t afford a lawyer obviously so I represented myself and attempted to file for chapter 7 bankruptcy. Very simple and smooth process honestly, as long as all paperwork that’s already been turned in are *true* and correct. Didn’t have to give up my car or anything like that, came to an agreement with Navy Federal to just continue to pay the same initial loan. Then I think about 6-8 months later, poof. My debt was gone. Collections, CCs, Student Loans, Klarna/Affirm, etc. all wiped away. I felt FREE. Is the simplest way I can describe the feeling. I received my first 2 paychecks after no debt, & paid bills + day to day living,added up the remainder and the biggest smile drew across my face. I felt like Scrooge McMfDuck.
Also dedicated time to learning money management & accepting I’m the problem. Bad spending habits & bad discipline. This will with future endeavors tremendously. Side bar, I’m even gettin into investing, I never would’ve thought I made it this far before I learned about Chapter 7.
Now mind you there are rules and regulations that come along with Ch. 7 but basically if you’re drowning in debt and are truthful on the paperwork you should be fine. I’m not going to try to remember the number but the percentage was very high of those who were granted bankruptcy.
Significant Trade Off: Hits your credit. Hard. 10 years if I’m not mistaken until it falls off the record (so to speak). I can’t speak on if you currently have an apartment but you will be denied for future applications — for how long? Not sure on that yet, haven’t researched. So since you have an apartment I would be looking into that (hypothetically). Also time to learn money management and rebuild credit. So far I’ve started with a secure credit card about 2-3 months after the waiting game was over. A lot of time is spent learning in the bankruptcy process as I’m sure you can see.
LEARN A HIGHER PAYING & CONSISTENT SKILL (obvious answer is trade school but explore options) OR GO TO COLLEGE WITH A PLAN. FOCUS ON THE FUTURE. MAKE MORE SPEND LESS.
Just for context: I’m 23. Bills consist of car note, car insurance, phone, Gas, low rent (family home), and Apple charges. I went from drowning in debt and stressing everyday to saving money, investing money, traveling, and just enjoying life in general more.
To *me* the trade off was worth it but that’s obviously circumstantial and up for debate. My belief is enjoy life but also learn from mistakes and capitalize off better opportunity when it comes. Some ambition and dedication goes a long way.
P.S. steadily save for a rainy day. Pay off cc’s in full, don’t bite more than you can chew and don’t make the same mistake twice. You know how hard and stressful it is.
As previously stated, I represented myself but if you can afford a lawyer, I wouldn’t say that’s a bad idea either. I’m not the sharpest tool in the box, but I know how to read and comprehend.
Last thing, it’s a lot of waiting, you’re going to have to find a way to survive for the present. DoorDash, uber eats, switch jobs (factories offer a lot of overtime I heard). May not love your job but if you want change you have to face adversity head on with a plan. Even if you don’t like it. A basic resume and a day before practice interview, goes a long way you’d be surprised.
TL;DR
Research & understand chapter 7 bankruptcy. Decide if it’s a good fit for you and your circumstances.
Weight off my shoulders
Trade off. Credit gets hit hard.
Rebuild credit
Explore different options to make more $$.
Learn money management & self control.