30 Years old, $53k In Total Debt, $100k Salary - Need Advice

hyperspacepilot444

Hello everyone,

I'm pretty scared typing this but I need advice on how to tackle paying off my debt. After totaling everything up I learned that my total debt is $53,425, with me paying about $1,903 a month (credit card debt + personal loan). I realized I've made some serious mistakes in my finances but I believe I can come back from this, since I'm the one that got myself into this mess. Below is the breakdown:

Credit Cards:

Card 1 Balance: $7,504. Minimum Payment: $310. APR: 29.99%

Card 2 Balance: $6,952. Minimum Payment: $256. APR: 27.24%

Card 3 Balance: $10,262. Minimum Payment: $420. APR: 28.24%

Card 4 Balance: $3,115. Minimum Payment: $104. APR: 27.99%

Card 5 Balance: $876. Minimum Payment: $25. APR: 0% until June 2026

Card 6 Balance: $3,553. Minimum Payment: $104. APR: 23.24%

Card 7 Balance: $6,427. Minimum Payment: $210. APR: 26.24%

Personal Loan Balance: $14,736. Minimum Payment: $474. APR: 28.85%

Current Rent: $2,303

Other stats: 30 years old, no kids, no wife, no gf. Bi-weekly paycheck - $2,989

I want to note about the Personal Loan - Last year I was unemployed for about 8 months, finally after months of interviewing for multiple different roles I was able to get a full time offer for $100k a year, however this was contingent on me moving to a different state halfway across the country. At that time, I literally did not have the funds to make the move to a different state, so I decided to take a personal loan to fund my move in order for me to take the job. I had to move all my belongings, car, etc. I'm now working in my new job, but it's getting pretty hard to make payments on time, I have to pay rent late this month. Please help me on what I should do next. This amount of debt is causing me to go to bed with anxiety, and its kind of affecting my work life balance as well. I'm kind of regretting making the move to a entirely different state, it caused me so much more debt.

I'm seeking financial advice from anyone on the best route to take paying off this debt. Thank you so much everyone.

NoMore

This is predominantly a UK based forum, as you appear to be in the US people will probably not best placed to advise you on specifics due to locality issues but I'm sure you can pick up general advice.

RAS

This is GB website. Whilst we'd love to help you, you appreciate that the law is different in different states? As it is in different countries in GB?

My understanding is that if you took out consumer debt in one state, they can't pursue you in courts in another state. So concentrate on paying rent and debts taken out in the state you now live in. And the IRC.

sourcrates

As others have said, this is a UK based website, so we can`t advise on US debt problems.

One thing I guess is the same country to country, and that is rent is a priority debt, which you should pay before your unsecured credit debts, if you are short of cash, its the consumer debt that takes the hit, not your rent payment.

Other than that, I`m afraid we can`t comment as we are not familiar with US laws etc.

loobidoo

Have you done a budget you can stick to or are you going deeper into debt each month? 

I use YNAB to budget - they have lots of advice on their website too. You can try it free for 34 days (I think). 

And all of the Dave Ramsey advice is US-specific too. Min payments on everything until you have $1000 emergency fund, then snowball all your debts starting with the smallest card first (or you can do it highest interest rate first). 

I was similar to you in that I was off work for months, which shot my finances, so I totally understand why you decided to move to take the job. Hopefully it all works out for the best in the long run. 🤞

loobidoo

And what is your living situation? Can you move to a cheaper rental or can you sublet a room to a lodger? Any changes there would free up some more money. 

NeverendingDMP

Ok so we can't help with the US technical details but do you have a list of all income/outgoings. We call it a summary of affairs on this forum. On first glance though your rent and debts takes most of your earnings. Then you need food,transport, bills and insurance for things. How much are you short or can you just make the minimums?