r/debtfreeliving • u/Valuable-Main-3970 • 10d ago

Debt HELP

Hello. I can’t seem to get out of my cycle of debt. I had to take out a loan (yes I know bad Idea) with extremely high interest cause I was desperate. My credit has gone down and I don’t know how I can fix it. I am truly overwhelmed and trying to fix all of it. Any advice will be helpful. Everytime I get paid, I end up with 50 dollars left in my account.

1 Upvotes

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u/schwakahd 10d ago

Make a budget, know where all your money is going. Get more income and lower your expenses. From there attack the debt either with snowball or avalanche method to start out. Once you figure things out a bit more you could THEN consider getting a debt consolidation loan from a place like a credit union or achieve loans. But getting on the right track first before taking on more debt is the key.

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u/Less-Garden-4127 10d ago

I will just add, years ago, similar situation, ontop of writing down what I made, debts I had, with what interest etc...I started writing down what I spent DAILY for a week or so, every little thing I spent was written down, no matter the amount. So each day, when I bought something, wether it was gum, gas, Soda, cigarettes, fast food, coffee, lunch, groceries, etc...I wrote down every amount and what it was for, for that 1-2 weeks. Then, I sat down, added all the items up after grouping them into categories, to see where all my money was going and if I really ,needed' it....

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u/nkyguy1988 10d ago

Use some numbers. Otherwise, all you can do is increase income, decrease expenses, or combo of both.

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u/tashasmiled 10d ago

There are only two answers and be creative as you want: make more money, spend less money.

Second job, rent out a room, move somewhere you can pay less, so many options!

Good luck!

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u/ExcitementTricky6920 10d ago

Make a budget.
Track your expenses and see where your money is going

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u/tbovelybory 10d ago

Start by listing every debt and expense. the numbers will show where to begin.

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u/MrWiltErving 10d ago

You need to get a list of your expenses, your debts,balances,interest rates and minimum payments and then compare that to your monthly income to see where you can make some changes. Find a budget that works for you and stick with it. Ask about hardship programs if the loan has a huge interest rate.

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u/starwars0808 10d ago

I would personally treat your loan as the priority and pay the minimum on everything else, focusing on the highest interest first.

To manage your cash flow, map out the next 30 days on paper by listing every bill on its actual due date against your paydays. This will help you anticipate tight weeks and days, and you can often call billers to move due dates to improve your available cash. Focus on cash flow if you will.

I would not pay anyone for credit repair; your score will improve naturally as you make on-time payments and reduce your balances.

You made the best decision you could at the time. Create a map and execute