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HELP! 50k in cc debt where do I start?!


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40 replies to this topic

#1 mommy55

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Posted 01 September 2015 - 04:40 PM

Not sure how I got to this point

I have two NFCU cc 15k each -total 30k debt 

store cc- total -8k

car loan 8k remaining

carecredit-3k

every paycheck goes to paying those cards and hardly can keep up with my house bills.

Do I try a loan consolidation or credit counseling place?? what can i do to even make a dent.?? I wish the CC companies would give me a 0% interest break for about 6 months. That would help me :-(

Please any advice would be appreciated


Edited by mommy55, 01 September 2015 - 04:41 PM.




#2 hyschmied

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Posted 01 September 2015 - 05:28 PM

Start with a budget if you don't have one. Go over the last few month and see where every penny is going.
Make a budget you can live with and stick to.

Most cc companies won't stop interest unless you've missed some payments.
Credit counseling is an option but there are good ones and bad ones and really they don't do anything you couldn't do yourself as far as negotiating with the banks. Plus the bad ones have been known to pay late hurting your credit even more.
Sell stuff.
How is your income? Just you or is there a spouse involved?

#3 Sandscrit

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Posted 01 September 2015 - 05:58 PM

Like Hyschmied said start with your budget.

 

Don't eat out and only buy essentials.

 

What can you sell?

 

Keep a log of expenses and find ways to keep from spending money you absolutely don't need to spend.

 

It won't be easy or fun but you will survive and learn one of life's lessons... respect for your money



#4 DollarDog

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Posted 01 September 2015 - 06:08 PM

If you have no idea how you amassed ~$49,000 in debt, the first step is in looking at your statements.  The next step is to figure out where your money is going.



#5 homelessvet

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Posted 01 September 2015 - 10:40 PM

It sounds like you need to go Dave Ramsey lite for 24 months. You have good cards with good limits, so I'm not saying cancel them and live on cash for the duration of your natural life. Put the cards away and live on cash temporarily. The semi-good news is that NFCU offers financial counseling. I found the info when I was looking for something else. Info here: https://www.navyfede...-counseling.php

 

 

 

  • Remedial Counseling
    If you are experiencing a financial crisis, we can help you regain control of your finances. We can assist you with a repayment plan and refer you to a Debt Management Program for any other debts. NOTE: This is not a bill-paying service. It is made available only to those whose income allows them to make reduced payments after their debt is reorganized, and is not a solution for those who are insolvent.

 

Until then:

 

 

1. Stop using the cards

2. Don't apply for anything else

3. Create a budget and stick to it

4. Pick up a side job if you can

5. Snowball payments

6. Spend wisely once you're out

 

Take stock of what happened here and make sure it doesn't happen again-only you know what that is and you need to be honest with yourself. I'm not chastising you or accusing you of anything. I'm 99% finished digging my way out of a financial mess and fully recognize that I could have made better financial decisions that would have left me in a better position when I was fired. 


Edited by homelessvet, 01 September 2015 - 10:40 PM.


#6 dansamy

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Posted 01 September 2015 - 11:03 PM

Yep. For now, shred them puppies. Super strict budget. With $50k in debt, you can't afford any luxuries & very few niceties. Cut the eating out, cable, streaming services, cheaper cell service, ditch the landline, movies are free/cheap at the library, beans/rice eating. You get the idea.

#7 mommy55

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Posted 02 September 2015 - 12:08 AM

thank u, no I did not make good finacial decisions...at all :-(. learned the hard way.

i figured i have to start with the budget. I stopped using the cards and just been paying. those interest finance charges are killing me tho. may get a second job since i work from home and my schedule is flexible. i guess i''l do that dave ramsey snowball method. My boyfriend said he will help pay monthly on 1-2 of my cards. i need to get out of debt b4 we are married and get a house together.



#8 mommy55

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Posted 02 September 2015 - 12:10 AM

It sounds like you need to go Dave Ramsey lite for 24 months. You have good cards with good limits, so I'm not saying cancel them and live on cash for the duration of your natural life. Put the cards away and live on cash temporarily. The semi-good news is that NFCU offers financial counseling. I found the info when I was looking for something else. Info here: https://www.navyfede...-counseling.php

 

 

 

  • Remedial Counseling
    If you are experiencing a financial crisis, we can help you regain control of your finances. We can assist you with a repayment plan and refer you to a Debt Management Program for any other debts. NOTE: This is not a bill-paying service. It is made available only to those whose income allows them to make reduced payments after their debt is reorganized, and is not a solution for those who are insolvent.

 

Until then:

 

 

1. Stop using the cards

2. Don't apply for anything else

3. Create a budget and stick to it

4. Pick up a side job if you can

5. Snowball payments

6. Spend wisely once you're out

 

Take stock of what happened here and make sure it doesn't happen again-only you know what that is and you need to be honest with yourself. I'm not chastising you or accusing you of anything. I'm 99% finished digging my way out of a financial mess and fully recognize that I could have made better financial decisions that would have left me in a better position when I was fired. 

Thanks. Im going to call them just to see what they say.



#9 dansamy

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Posted 02 September 2015 - 12:20 AM

How much do you earn? What expenses can you cut out? Did your fiancé help run up this debt? In other words, did you use the cards on things like vacations, dates, extravagances? If he helped you run them up, he absolutely should help you pay them off.

#10 mommy55

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Posted 02 September 2015 - 11:43 AM

I make 60K. I need to cut cable that is $300 a month smh.

My fiance was out of work last year so I did help a lot. He is working a good job now and he told me to sit down and figure all my bills out and what i need him to help me pay on. btw we each live in seperate states. so we both have seperate bills. we went on vacations a lot so no more of that.

i think i will concentrate on 1 card at a time while paying minimums on the others.


Edited by mommy55, 02 September 2015 - 11:49 AM.


#11 dansamy

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Posted 02 September 2015 - 01:17 PM

There's an app available for Android called "Easy Debt Free". I'm not sure if it's available on iPhone. It's great. It doesn't require your account numbers or anything, but you put in your debt amount, interest rate & minimum payment required for each debt. Then, you cab tell it how much you can pay each month. It will give you a payoff plan. I find it really helpful.

#12 mommy55

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Posted 02 September 2015 - 08:10 PM

ooh thank u i will try that too



#13 inoubliable

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Posted 11 September 2015 - 10:48 AM

Bumping to see how things are going with the OP



#14 dansamy

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Posted 12 September 2015 - 09:54 PM

Yes. I'm going she's made a solid action plan.

#15 TheVig

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Posted 13 September 2015 - 04:52 PM

All I can offer is some words of encouragement by way of personal experience. The wife and I were in a world of financial hell in 2007/2008. Not because of what everyone else in the country was going thru at the time such as massive job losses and home foreclosures. We were simply living beyond our means in our daily lives and it simply all fell apart at that time. lol.

 

Anyways here is what we did, and it was tough.

 

We cut the monthly expenses to the bone.

 

No more $200 cable bills. I cut the TV portion and kept a low tier internet only plan. I put up an outdoor antenna on the apartment balcony and got 32 channels for free.

Electric bill----we kept the A/C off except during the most unbearable times. We live in NC and summers are brutal with the heat/humidity.

Gas bill---Heat in the winter, kept the thermostat pretty low. Not Tiny Tim cold, but close enough at times.

No more Netflix, Hulu, etc.

No more spending money on hobbies. For me that meant keeping my butt out of Bass Pro and the local cigar shop. For the wife that meant no more arts and crafts with the hens at the local wanna be art guild.

No more Starbucks or similar shops. That was the equivalent of kicking heroin for the both of us.

Grocery shopping. Meal planning to a certain degree helped out with that budget. Also not getting caught up on the latest sales ads. Do the math, is it a really good deal?

When friends and co-workers wanna go out for food and drinks we learned to say no or stay within a tight budget. No more keeping up appearances.

Vacations for about 4 years was essentially staying at home.

 

Where are we at currently? Debt free except for monthly rent, utilities, and a low car payment. How do we stay this way? Discipline. Back in march, we took our first real vacation in 4 years. Went to the beach. Instead of staying in a 5 star hotel, we stayed in a two star. Yeah it was a chocolate box, but the sheets and mattress was clean. Didn't eat steak and crab legs every night. It felt good for the both of us knowing that we wouldn't be revolving a CC balance to cover it.

 

Sorry for the long ramble. Hang in there. As long as you and the fiancé are on the same page, you will get past this.


Edited by TheVig, 13 September 2015 - 04:55 PM.


#16 mommy55

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Posted 16 September 2015 - 09:20 PM

Thanks Guys. I started. im going to try to knock out the highest interest cc's first. Carecredit is horrible. they screwed me with the no interest then stuck on $1000 interest after a year so Ive been paying on it for 2 yeaars and its still the same freaking amount. ugh! getting that out the way immediately. all my extra money is going towards payments. I tried to get a low interest personal loan from nfcu to pay off half of my debt in 1 monthly payment but no go. I am looking for a 2nd job since my job allows a lot of flexibility working from home.  i may start ubering.



#17 dansamy

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Posted 16 September 2015 - 10:09 PM

They didn't screw you. The terms of most 0% offers include the balance needing to be paid by the expiry date of the offer. If the balance is carried beyond that, interest is RETROACTIVE to the date the charge was made. Technically, you screwed yourself.

Edited by dansamy, 16 September 2015 - 10:10 PM.


#18 crazy2crazed

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Posted 17 September 2015 - 03:24 PM

Lol CareCredit is a sob. We have that card thanks to me needing dental work. Can't wait until they are gone.



#19 mommy55

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Posted 13 March 2016 - 11:15 PM

Sooo it took me a minute but i came up w/ a plan and finally see the light ahead. i did a spreadsheet and can be debt free in about 2 years. lots of giving up shopping, going out and luxuries. cut my cable down to basic. will soon cut it off except internet.

I am paying on my bills WEEKLY. i divide the monthly payment into 4. so if my monthly minimum payment is $150, I up it to $200 then divide by 4 and pay $50 a week on it.

my carecredit which was 27% interest and the same balance for the past 3 years i wound up getting an nfcu pers loan for 18% -5k. its high but better then the carecredit interest. paid off care credit and paid down the best buy which was another high interest card at 25%.

paying weekly its showing that im not paying as much interest. wish i had done this years ago. also after paying everything and all my bills Im only left with $400 cash for the month. $100/wk for food & gas lol. no luxuries

I have 6k left on my car loan if I can get that paid off quickly that would free up $350 extra a month that i can apply to the ccs.



#20 Kat58

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Posted 13 March 2016 - 11:19 PM

That's Great, mommy55!



#21 dansamy

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Posted 14 March 2016 - 01:36 AM

Good job. Tough to do, but worth it.

#22 Zobelle

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Posted 14 March 2016 - 01:39 AM

Sooo it took me a minute but i came up w/ a plan and finally see the light ahead. i did a spreadsheet and can be debt free in about 2 years. lots of giving up shopping, going out and luxuries. cut my cable down to basic. will soon cut it off except internet.
I am paying on my bills WEEKLY. i divide the monthly payment into 4. so if my monthly minimum payment is $150, I up it to $200 then divide by 4 and pay $50 a week on it.
my carecredit which was 27% interest and the same balance for the past 3 years i wound up getting an nfcu pers loan for 18% -5k. its high but better then the carecredit interest. paid off care credit and paid down the best buy which was another high interest card at 25%.
paying weekly its showing that im not paying as much interest. wish i had done this years ago. also after paying everything and all my bills Im only left with $400 cash for the month. $100/wk for food & gas lol. no luxuries
I have 6k left on my car loan if I can get that paid off quickly that would free up $350 extra a month that i can apply to the ccs.


If your car loan is lower interest than the personal loan then I'd still focus on that personal loan.

#23 mommy55

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Posted 14 March 2016 - 12:53 PM

 

Sooo it took me a minute but i came up w/ a plan and finally see the light ahead. i did a spreadsheet and can be debt free in about 2 years. lots of giving up shopping, going out and luxuries. cut my cable down to basic. will soon cut it off except internet.
I am paying on my bills WEEKLY. i divide the monthly payment into 4. so if my monthly minimum payment is $150, I up it to $200 then divide by 4 and pay $50 a week on it.
my carecredit which was 27% interest and the same balance for the past 3 years i wound up getting an nfcu pers loan for 18% -5k. its high but better then the carecredit interest. paid off care credit and paid down the best buy which was another high interest card at 25%.
paying weekly its showing that im not paying as much interest. wish i had done this years ago. also after paying everything and all my bills Im only left with $400 cash for the month. $100/wk for food & gas lol. no luxuries
I have 6k left on my car loan if I can get that paid off quickly that would free up $350 extra a month that i can apply to the ccs.


If your car loan is lower interest than the personal loan then I'd still focus on that personal loan.

 

ok. i just wanted to free up some extra cash.



#24 Zobelle

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Posted 14 March 2016 - 01:34 PM

 

 

Sooo it took me a minute but i came up w/ a plan and finally see the light ahead. i did a spreadsheet and can be debt free in about 2 years. lots of giving up shopping, going out and luxuries. cut my cable down to basic. will soon cut it off except internet.
I am paying on my bills WEEKLY. i divide the monthly payment into 4. so if my monthly minimum payment is $150, I up it to $200 then divide by 4 and pay $50 a week on it.
my carecredit which was 27% interest and the same balance for the past 3 years i wound up getting an nfcu pers loan for 18% -5k. its high but better then the carecredit interest. paid off care credit and paid down the best buy which was another high interest card at 25%.
paying weekly its showing that im not paying as much interest. wish i had done this years ago. also after paying everything and all my bills Im only left with $400 cash for the month. $100/wk for food & gas lol. no luxuries
I have 6k left on my car loan if I can get that paid off quickly that would free up $350 extra a month that i can apply to the ccs.


If your car loan is lower interest than the personal loan then I'd still focus on that personal loan.

 

ok. i just wanted to free up some extra cash.

 

Paying a lower interest loan off to "free up cash" as the higher interest loan builds interest is counterintuitive.

 

As I understand it, Your personal loan sits at 18% APR. If your Auto loan interest is lower than this then it would behoove you to pay every extra penny towards the personal loan and just keep making regular payments on the Auto.



#25 mommy55

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Posted 14 March 2016 - 02:52 PM

 

 

 

Sooo it took me a minute but i came up w/ a plan and finally see the light ahead. i did a spreadsheet and can be debt free in about 2 years. lots of giving up shopping, going out and luxuries. cut my cable down to basic. will soon cut it off except internet.
I am paying on my bills WEEKLY. i divide the monthly payment into 4. so if my monthly minimum payment is $150, I up it to $200 then divide by 4 and pay $50 a week on it.
my carecredit which was 27% interest and the same balance for the past 3 years i wound up getting an nfcu pers loan for 18% -5k. its high but better then the carecredit interest. paid off care credit and paid down the best buy which was another high interest card at 25%.
paying weekly its showing that im not paying as much interest. wish i had done this years ago. also after paying everything and all my bills Im only left with $400 cash for the month. $100/wk for food & gas lol. no luxuries
I have 6k left on my car loan if I can get that paid off quickly that would free up $350 extra a month that i can apply to the ccs.


If your car loan is lower interest than the personal loan then I'd still focus on that personal loan.

 

ok. i just wanted to free up some extra cash.

 

Paying a lower interest loan off to "free up cash" as the higher interest loan builds interest is counterintuitive.

 

As I understand it, Your personal loan sits at 18% APR. If your Auto loan interest is lower than this then it would behoove you to pay every extra penny towards the personal loan and just keep making regular payments on the Auto.

 

 

will do,thks. my auto loan is only 3%






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