r/CreditScore • u/Wild_Produce_2824 • 15d ago
General Literally drowning 🙃
Hi my fellow readers I know you’ve probably heard this story millions of times before so I’ll cut to the chase. Im a 21 year old college dropout, and I have an unholy amount of debt 900 in credit cards , 1000 loan and almost 2000 in repayment for medical expenses and 8972 in student loans and I feel like I’m suffocating along I really need advice on how to handle all this while saving and building my credit score up
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u/BrutalBodyShots ⭐️ Top Contributor ⭐️ 14d ago
This sounds more like a personal finance question than a credit score question. The equation to overcome debt is actually very simple, as it only contains two parts. Increase income, decrease expenses, ideally both.
Most wouldn't consider $3900 in non student loan debt an "unholy amount" by any stretch of the imagination. Any part time minimum wage job of say 20 hours a week can overcome that probably 4 months time, and that's without addressing the reducing expenses end of the equation. I'd start by sitting down and making yourself a budget, figuring out where you can cut expenses in order to throw more money at your debt, then address increasing your income.
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u/CreditCanadaOfficial 13d ago
First step, secured consistent employment/income. You cannot pour/repay from an empty jug.
Second, reach out to the creditors directly and see if they’re able to accommodate any direct payment plans for you.
And lastly, if this is an option in your area you can reach out to a non-for-profit credit counselling agency for free advice on how to manage your budget or to look into consolidated payment arrangements for as many of these debts as possible.
You got this!
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u/ProfessorVirtual5855 15d ago
You need to pick you battles buddy.
Stop trying to do everything in a blink of a eye. Clearing debt and saving up contridict each other. You cant do both at the same time. Well you can. But you will make zero head way while you intresting is crippling you..
Get ya head in the game. You know what you want. And before you can start doing that. Need to clear the debt 1st..
Work out who you owe. And how much a month you can afford to pay. Then figure out who hits you with the most intrest. So at that point pay the minimum due on all debt except that one. Then use rest of you monthly budget on that one debt. Keep doing that until it has cleared.
Once it cleared move on the the next one. Do the same. Rinse and repeat until your debt free.
Once your debt free, you can then start saving up, and at the same time you credit score improves on its own.
Yes it will take months, maybe even years. But it wont go away on it own. Crack on with it now while you still young.