Hi all, I would really appreciate some insight as to what the fuck to do about my financial situation. I have about $35,000+ in credit card debt, $7,300 car loan, and $165,000 in student loans. Luckily, I am only paying $500/month for my student loans but I think I am paying over $1200/month on credit card minimum payments. My credit card interested is on average about 25% and my credit score is low 600s. I am only making like $3000/month (if I am lucky), so spending over half my salary on debt is extremely unsustainable for me. I am open to considering bankruptcy for my credit card debt, but I am not sure if I should look into debt consolidation loans as well? I have looked into debt consolidation a bit, but it feels so overwhelming to find a reliable lender.
I feel like some sort of financial advisor would be helpful, but I don't have $500 to spend on financial coaching. Anyone know of something similar or a way to talk to a real person about what the hell I should do?
Thank you in advance!
ETA: I am 25f in the U.S. for context.
Another ETA: my cc debt is across 5 different credit cards.
Drowning in $1200+/month CC payments – please advise
byu/BoringAddition4546 inpersonalfinance
Posted by BoringAddition4546
18 Comments
Where did the credit card debt come from? Are you currently going deeper into debt? Slowly repaying? or about maintaining?
My guess is you are young based on this spending and your concerns but If I am incorrect I am sorry. Bankruptcy is not the option for you or many folks who ask this because it would not benefit you much if you are not running a business per se.
Simplest answer is you’re looking for any form of debt consolidation. You should shop around if you have time to find the best person to not only accept your debt but lower your overall interest to something more feasible. 25% is just highway robbery, if you can get anything even under 10% it’ll be a huge offload and if I imagine you have 3-4 credit cards accumulating this debt of 35k, its likely why your minimum is so much (500+500+500+500+500+500) vs if its consolidated it may be more like 1.5k a month
Much more details are needed, but sounds like you just need to really take a look in the mirror and halt/control your spending and start being careful about easy spending on things like daily coffees etc, start making meals. Its not to sound condescending but if you save 5 dollars on coffee its 5 dollars back towards your debt but you may not be going out for a bit.
transfer the credit card debt to a 0% APR card- live frugally, and overpay as much as you can afford to until its paid off. bankruptcy costs money you dont have, stays on your credit report for 7 years, and stops you from feeling the full consequences of your spending choices
So pretty much $200,000 in debt, making $3,000 a month with a credit score in the low 600s.
This situation took a lot of effort to get into. You can’t act confused now, like you don’t know how you got here. What is your credit card debt from first off?
What is your degree in and why is it only worth roughly $24/hr right now. You’re about to be paying the minimum for the next 30 years if you continue this path.
Definitely no financial advisor needed. Consolidation (edit: as in some kind of personal loan at a lower rate than your cc and a fixed monthly payment, not those companies you see advertised on TV) or balance transfer 0% promo can be a viable route. The free advice you need is cut up those cards. Good luck!
Good Lord. Bankruptcy won’t help. What did you study for 165000?
I was in a similar situation in 2025. 25M with $35,000 in credit card debt [thankfully no student loans or car loan]. I was paying $1,500/month on minimum payments and the balance wasn’t going down. For reference I was making $15.25/hr, so bringing home about $2,000/month. Obviously not enough. I had to live in my car for a while as I couldn’t afford an apartment. The only way to bring the balance down was to get a second job. So I was working 80hrs/week, bringing home about $4,000/month, and it was all going to my credit cards. No eating out [I would eat one meal a day, lost a few pounds], nothing fun that required money. Currently only owe $5,000; so I paid $30,000 in one year. For reference my 2025 income was $49,000; I probably brought home $40,000, so $10,000 went to rent when I eventually got an apartment, the rest to credit card debt. Lived VERY frugally.
Personal finance is pretty straightforward, even if what personal finance tells you to do is difficult to implement. It all comes down to raise income, lower expenses, equals savings. Take those savings and do a mix of put it in bank accounts, pay off debt, invest in stocks and bonds.
So in your case if you can raise income, definitely do that. That’s the easiest way.
Reduce expenses includes less on things like going out to restaurants and such, more meal prep and cooking at home. Rice and beans (big dry bags), spices, shop cheaper in general.
Also reduce interest expenses – for the credit cards, 0% balance transfers etc.
Then everything you get needs to go towards paying the credit cards, highest rate first.
My suggestion is to get a part time job in addition to your regular one and put all of the money you make from that towards your CC debt.
A financial advisor won’t help you and many of them will just try to sell you insurance you don’t need.
Debt consolidation isn’t a great option either. What many (all?) of the companies do is tell you to stop paying your CCs and instead send the money to them. A year later, your credit score is in the toilet. The consolidation company will then contact your CCs and ask if they will take less than you actually owe. To the bank, it looks like you’re a deadbeat so they often negotiate. The consolidation company then uses the money that you’ve sent them (if it’s enough) to pay off one CC. Then once the balance in your account increases enough, they’ll move on to the second card.
The thing that they try to hide from you, is that they take their fees from the money you send them, so only a % actually goes to paying off your debts. It takes years and your credit is trashed in the process.
I have combined cc/loan around 16k, and while it’s not life ruining, I worry about it every day. What’s been working for me is a second job. I tutor and work in a daycare (extra 10-15 hours/week) which brings in an extra 1000-1200/month which goes directly to debt. Snowball method. My total debt was around 20k in December so progress is being made. I also made lots of frugal changes- no dining out, 2 “cheap dinners” a week like Ichiban, no Starbucks, bagged lunches and only buy things that I need/ no online shopping. So like many are saying: increase your income and reduce your expenses while cleaning up spending habits.
Your best option at this point is a second job and to cut expenses.
And not use those credit cards at all. Paying the minimum will never get you ahead.
Get zero interest credit cards, move the balance and keep on paying that 1200+ for the whole year.
Repeat the same process the following year.
If you do this, you will be out of debt in 35000/1200= 29 months= almost 3 years
With $165,000 in student loans you should be a doctor, dentist or an engineer
what was your degree in ?
you need to be using it to make money
Just let it all go. Stop making the payments. Let it go to collections and then negotiate a fraction of the balance to get it off the books. It’ll be a massive hit at first but after a few years your credit will recover.
I hate that people don’t read the body before they reply with judgmental answers
I was in your exact financial situation three years ago. I had to move back in with my parents and double my income to get out of that debt. But I am completely debt-free and I paid the car off.
You need to decide what’s the most important to you
I am of the 2nd job community more income is critical for you to make any real progress…plus the obvious no spending, cooking at home.taking your lunch…etc…it is an old standard to do the snowball method—small wins will make you feel better—-as you see the smaller balances zero out …I am not a fan of consolidation but you should call each account and ask if they will lower your interest for a while…some will and it doesn’t hurt to ask…..good luck!
Since you’re a therapist, I think you just need to incr ease hours or find apps to moonlight on.
My therapist for example made her own practice (mid-30s), while also working on a few of those websites you find people on. She is avail 7 days a week and after a few years, has so many clients she’s booked out about 1 month.
There’s a lot of apps too, like so many online doctor type apps who just have therapy in addition to actual doctors. That’s actually how I found her, she ended up being so good I wanted long-term sessions. I think applying to work for one of those while building up your caseload is the best way to double your income.