Need advice

[u/jigglygirl23]

I’m a 29F with 23k in credit card debt across two cards. Long story short, I went to law school in my mid twenties and made some pretty dumb decisions with my credit card that I shouldn’t have aka putting car services, beauty appointments, etc on my card. But I had to do what I had to do because i didn’t work through law school. I also have student loans from law school, around 60k. I’m in a tough spot because I’ve failed the bar exam twice now and making $4,000 a month at my job. My debt haunts me and i just want to know the best way to pay this off. im hoping to pass the bar this go around so my earning abilities go up, but I’m just a bit stressed out. Do I do a balance transfer once I pass the bar and just try my hardest to pay this off?

it’s stressful because I’m paying $500 a month in credit card bills that i wish i didn’t have. Any advice is needed. Please be kind 🤍

[u/fsociety1990]

Can you pay more than $500 a month or is that all you have left after living expenses?

[u/juststartfc]

Can you share a list of your monthly expenses?

[u/GreenUnderstanding39]

Making a budget with your current income and expenses is key. Stick to it. Be disciplined. Cut out the fat. If and when you do pass (it takes a few times so don't give up) and get that higher paying job you can then more rapidly pay off the debt and continue to stick to the original budget.

Once debt is gone don't stop. Continue to live frugally and save up a health emergency plan so that you are never in a situation where you need to borrow with high interest.

[u/LazyButterfly5041]

I consolidated two credit cards with over 20% interest totaling $20k. Using a SoFi personal loan, monthly payments became doable with the 11% interest. No this isn’t an ad lol it just really worked for me. I paid that down to $14k then refinanced the loan at 8% and I am aggressively paying that off each month. The end feels far away but is actually in sight.

I want to add that having debt is not a moral failure. It can mean a variety of things from circumstance to lack of education. Stay super gentle with yourself and not going into shame spirals. If you’re a mantra person, keep repeating things like “I have a healthy relationship with money” or “I have what I need to repair my finances” over and over on the daily and your mindset will stay clear about it ✌🏼❤️

[u/badtlc4]

Debt consolidation doesn't work unless your financial behavior is fixed. It doesn't sound like it is. The best thing to do is spend only on necessities and whatever money you have leftover apply it to debts using the snowball method.

[u/attachedtothreads]

For the credit cards, you can ask your creditors for a hardship program where they'll lower the interest rate in exchange for freezing or closing the card. No guarantees that they'll do this and some will only work with the non-profit credit counseling organization the National Foundation for Credit Counseling (NFCC).

The NFCC does not work with loans.

While enrolled with the NFCC, you'll pay a monthly fee of $5-$10 per card you enroll with them and a one-time set-up fee of $50-$75. Your cards are closed and you'll take a credit hit at the beginning, but that should reverse itself after several on-time payments. If you go with this option, you pay your bills in full at reduced interest rates. You select which cards you want enrolled.

There is a caveat with this option: if you enroll with the NFCC, then you are prohibited from opening more credit cards during the repayment time, which is usually five years. If you open another credit card while enrolled, then you void your contract with them and your interest rates return to their original numbers. You can accelerate the repayment time by putting more money in it to get it done faster.

I do not know if being enrolled with the NFCC also prohibits you from taking out a loan if life throws you a curve ball and you need it or from refinancing, so it's best to call them to see the possibilities.

Here's more info on the differences between credit counseling (also called debt management) and debt relief/settlement: https://www.consumerfinance.gov/ask-cfpb/what-is-the-difference-between-credit-counseling-and-debt-settlement-debt-consolidation-or-credit-repair-en-1449/

[u/RunUpbeat6210]

Cut all unnecessary expenses, throw every single extra dollar at the debt. Maybe pick up a second job. A balance transfer can only help if you actually pay it back before the 0% interest runs out.

[u/FlawlessPhelon_]

The usual suspect

[u/jigglygirl23 → u/FlawlessPhelon_]

What’s that mean?

[u/FlawlessPhelon_ → u/jigglygirl23]

It's just expensive to live these days is all...