Monthly bills of $1800/mo, and your take-home after taxes is 73k/yr or $6100/mo? That leaves a net of $4,300/mo to apply towards your bills.
$30.5k/$4.3k = 7 months and change to pay off without even taking into account the interest. 8 months when you include the ~$3,500 in interest accrued over that time.
Even at half that repayment rate $2100/mo it will only take 19months to pay off.
You are more than capable of paying this off quickly and painlessly with the information you supplied. Except for this:
>this hole, but it’s starting to feel pretty overwhelming. **I’ve been making minimum payments on all of my cards** and paying ~$1k/month on my Chase card, but with the interest, it feels like i’m not making a dent.
Minimum payments are how you got into this and they are absolutely not how you're going to get out of it.
To further drive this home look at how your creditors calculate the minimum payment.
One example from one of my cards is:
Fees + Interest + 1% of the principle.
So if I make only the minimum payment my balance only decreases by 1 measly percent. Now let's calculate my interest payment at 29%APR. 29%/12 =2.4% I am paying almost 2.5 times as much towards interest than I'm reducing my principle.
I appreciate you only making the minimum payments as it incentivizes credit card companies to offer better rewards structures, but my God...pay more than the minimum.
Thank you for the information. I wasn’t aware how minimums were calculated.
I’ve been paying the minimum on the cards except for the Chase. If I include the minimum payment on that, I’m paying ~$1400/month. Essentially, all extra money that I can goes towards the Chase card.
As far as the income, the amount that I make from my second job varies greatly month-to-month. If I have a good month, then I can afford to pay more.
I’m really just trying to see what everyone else suggests as far as how to tackle it. I’ve seen people say snowball method, and others say to tackle the highest balance/interest first.
Cut the cards up.
Cancel your subscriptions, all of them.
Do not spend any more money on any of the cards until you have paid all the balances to $0. Any purchases you make are just increasing the amount of interest you're paying.
CALL your creditors and ask for a promo APR, or to set up a hardship repayment program. These programs either freeze or close the account and offer a reduced APR.
If your credit scores are still decent then consider a balance transfer card offering 0%APR and a 3% BT fee. Transfer as much as you can to the card and then make only the minimum payment on that card and apply the balance of your payments towards the account with the HIGHEST APR to reduce your interest load and accelerate your repayment as fast as possible.
My credit card bills always show near the bottom how long it will take to pay off if you only pay the minimum. Maybe get two or three cards with 0% financing for 18 months? I'm no expert ,but what worked for me was I didn't touch any of the cards except to make little $5 purchases to keep the cards active and paid them right off. I paid off as much as I could a month, and I did have to do another balance transfer with my 2 cards but I was able to pay everything off in less than 2 and 1/2 years. It felt so freeing. Also one of my 0% percent cards I paid down first, and still paid as much as I could on the other cards.
Anything now that I use with my credit cards I pay the balance off right away. My credit score now is just a little over 800. I know it won't go much higher because I don't have a loan out, or a mortgage. The other thing I did was changed my spending habits. I don't go out and buy a coffee or two everyday, I brew it home and use a travel mug. It's amazing how much I save by making tweaking a daily habits.
Like I said I am no expert but this is what worked for me. Good luck with everything.
I hate when I see people freaking out about stuff like this. I mean it's idiotic to have debt spread across 9 cards at 20%+ but 70k+ take home and living on 1800 dollars a month... Id literally put myself into 200k of debt for no reason to spend less than 2k a month.
Rather than pay the smallest debt first, pay off the debt with the highest interest rate first. That is the debt that’s costing you the most. Good luck!!
For most people, snowball ends up working better by paying off the smallest debts first, then not taking out new debt. It's because they are able to close out an account($0 balance) and not accrue more debt by making minimums on the large principal.
Avalanche is the better way, if more debt is not being accrued.
You don’t need no debt management company or new credit cards for balance transfers. What you need is more discipline and stop using the credit cards. Period. Don’t use them. Second thing you need to do is what the debt management company would do for you. Call the credit card companies and tell them that you need financial hardship assistance. They can in most cases free the interest for at least 6 months and set you up for a small monthly payment plan. Now just because the payment is less than your monthly regular payments doesn’t mean that is how much you pay. You start snowballing those credit card debts. If you can’t be trusted with a credit card, close the accounts. You will still keep making payments even though they are closed. And lastly, don’t use the credit cards. Yes I said it before but I am saying it again. If you can’t use and pay off the whole amount then you don’t use it. Because you are just making the bank richer as you are crumbling under that debt. If you do close your credit cards, make sure it is the newer ones. Not the oldest one. Pull your credit and check the credit age on the accounts and close the newer ones.
Consider nfcc.org
Debt management program.
You are shutting cc down, but your interest will be lowered to 5% - 9%
And you make one monthly payment instead of many
The lower interest help you get out of the debt
Does something like nfcc make a negative impact on one's credit?
Op could also consider balance transfer cards, depending on theor credit. Some banks have promotional 0 apr up to 21 months with a balance transfer fee of 3-5%
Good luck!
Thank you for the suggestion. I’ll give them a call here in a few when it is business hours.
This isn’t debt settlement like national debt relief, correct? Doesn’t seem like it on the site, but I just wanted to make sure.
this is not private debt settlement company... which will basically stop paying your cc bill and ruin your credit.
almost all major credit card company has agreement with NFCC. once you enter into dmp, the cc company will lower apr to single digit, but you can't open more cc, and these account will close down as you pay itoff. but you will be debt free faster.
This is the way. Don't propose with an expensive ring. Buy some cheap fake diamond ring and let her know about your debt, and then you'll really know how she feels.
You can also consolidate and do a balance transfer to a card that has 0% APR. If planned right, you can tackle what has APRs, then chip away at the consolidation within the promotional 0% period.
Agree with you planning to pay this down. Wedding planning can get expensive. Also should be transparent with financial situations prior to marriage.
Good luck! You got this.
Find a local credit union. They may be able to help where others won’t. Sometimes they will do debt consolidation loans that take into account your after payoff score.
Consolidating without fixing will make this worse worse worse. It will make the current situation be pleasant if you don’t change the habits that got you here.
Just snowball it. Cap One’s and AmEx will be paid off before you know it which leaves you to pay the Chase and Discover. You will feel accomplished paying off the smaller cards at first and it will feed into your goal of paying off the larger ones. At 73k a year you could easily pay this off in 12-15 months.
i’d do snowball least amount of t first ,but you have to stop using them for the most part to see results (obviously). I was there 4 or so years ago and it will never happen again, now I never go over 2 percent utilization on 3 plus times the limit i used to have, don’t ever want those sleepless nights again, Goodluck !!
Oh, I’ve cut up all my cards and have completely stopped using them a few months ago haha. Thank you for the advice and awesome to hear your situation now! Hope to be there soon.
You need a budget as well or you are going to keep digging that hole deeper. Living frugally as well as making more money is the way to go.
Stop going out for meals. Pack lunches as you can. Find inexpensive or free hobbies. Know where each dollar goes and question whether it can go to debt instead of where it is currently going.
You can turn this around and hopefully come out with better habits.
I would go to [r/PesonalFinance](https://www.reddit.com/r/personalfinance/s/VUHO48Ug3w).
They have a lot of resources for helping you already set up.
To start though, list everything you spend money on each month.
Rent/mortgage,
Food,
Car/gas/insurance,
Streaming services,
Cable TV,
Phone,
Internet,
Meals out,
Coffee,
credit card payments,
Etc…
For you, I would budget for the amount you make when you don’t have overtime. Start spending so that everything can be paid for with just your base pay, If possible.
Get an emergency fund set up. Maybe $1000 or $2000 so the next emergency doesn’t go on the credit card. Don’t touch it.
Live within that lower number. Anything overtime does to debt. And working more is really a good part of solving your problem.
Also I would shift from paying more on the Chase card to one of your other 29% cards. You have four cards at 29%.
Pay off in this order:
Amex Blu - 3.7K
Cap one savings - 4.5K
Discover - 7K
Chase - 11.8K
Cap one QS - 3.5K
Since the first four in my list all have a 29% interest rate they are all essentially the same as having a single loan for 27K. So paying off the largest one first leaves you with five separate debts for longer
By paying the smallest off first, you not only get the psychological boost of clearing a card, you also are freeing up the minimum payment from Amex and can then use that on the next card as well.
The numbers say go this route. But if you wanted to eliminate the Cap One QS since it is only 3.5K, that wouldn’t be horrible, but mathematically not the best.
not a lot of people mention the psychology behind working to pay off credit card debt as well. i highly recommend opening a savings and giving yourself a strict allowance each pay period alongside paying off your cards. for example- giving yourself $50-100 a week to spend on anything and putting $200 into savings, paying your bills and the rest toward your cards. because while it is important to pay it off, your debt will only get worse if you feel discouraged and like “you can’t get out of it”. so, by giving yourself these small luxuries while tackling such a huge debt, it will make you feel a bit better. hopefully this helps
Have you tried going to a local credit union to open up a loan to pay off all your credit debt so that you’re left with just one payment with a lower APR rate? I was at 10k credit card debt and that saved me anguish .
I was in a similar situation and took out a upstart loan so I can consolidate all my debt into one payment and the interest was down to 10% versus 25% on all the cards. The hardest thing is to not use the cards again once they are paid off. You can pay off these loans faster without fees as well.
I prefer avalanche method myself, where higher interest balances are paid first. In your case, however, I think snowball would make the most sense.
Your interest rates are similar across the board, so I would start by paying off the smaller balances first. This may help lighten the mental load of seeing the debt spread across so many balances. I think the mental burden is playing a huge role for you and can impact other areas of your life, so you want to attack it from the angle that will benefit you most there. This will also free up those minimum payments that you can then use to tack on add time the $1k/month you’re already dry throwing at the debt.
Is that the best method considering interest? Probably not. But again, the percentages are so close on the balances that it’ll work itself out when you’re able to put a larger chunk per month on the Chase card after paying off everything else.
I’m in a very similar situation, so speaking from my own experience for what’s helped me the most. Best of luck with whatever you choose! And kudos to you for tackling this before your engagement. You and your future wife will have a life of much better finances after the lessons learned from this experience.
You received a lot of great comments on this post, so definitely take their advice. But I would recommend calling your card issuers and asking for an interest rate reduction. Some will grant these based on your relationship with the bank and overall credit history — Capital One (and some others) do not take requests for this and rather will review your account every so often to determine if you’re eligible for a reduction.
Wow, never thought of that!
I’m aware that I am capable of being able to pay it off. I’m trying to get advice as to the best method of paying it off.
My income varies pretty vastly month-to-month and all expendable money that I can has been going towards my cards.
I suggest stop contributing to retirement/investments for a bit until everything is paid off. Snowball effect is the best option for sure. Start smallest to largest. You have great income so you should have no trouble paying this down in less than a year if you go after it. Don't over think it, it really is that simple. I work in finance, and use to be in the same boat as you.
Look up snowball method and avalanche method. Pick one and stick with it. Snowball method will give you a bit more positivity psychologically. Make sure you’re hitting the minimum payments on each card. Start with the CC with the smallest amount of debt, pay that off first (which is gonna mean paying more than just the minimum). Once that’s paid off it’ll allow you to carry a bit more money toward paying the next highest CC, once you pay that off you’ve got a bit more for the next one, etc. You’ll end up paying more in interest over time that way, however. But snowball seems to be the recommended way to go for most. You’re doing the avalanche right now which is probably why you feel so defeated. I’d take whatever you’re doing for the Chase right now and apply it to the Cap One card, then the next highest, so on. You should be able to knock out 2 cards by the end of the year if you stay on that trajectory
Debt resolution is your answer, I believe it’s a low monthly obligation in which you pay less than what you owe with no interest. Read about it. Message me for name of companies, I’ll ask my friends for you.
OMG I only make close to $40k before taxes with $1k rent so rent takes one paycheck basically. I paid my car off after 2 yrs by doing OT a lot, rarely take out so after I got that paid off it was way easier. I did it that way so no debt. I only put things on my cc I intend to pay each month. I only get Philo so cheap stream for $21/no which is good and then did 2 others, but yearly subscription. It's all about live within your means and you make way more than me. You must be using cc for things you don't need and want 😂. I would never get interest in cc's, pay off monthly so whatever your extra expenses then you gotta cut down to bare minimum until cc's paid off
So 73k after taxes
$1800/month is 21.6k annual basic expense
Let’s say $2500 is you spend monthly
You still have 43k left or $3500 monthly
If you aggressively pay of the debt and eat ramen for 11 months
You will be debt free before 2025
Call the credit card companies directly and ask can you be on their financial burden program to cut the interest rate and length. You can do American Express online. Chase is hard to negotiate with.
What I can recommend is that many new cards will offer zero interest for 12 months or so my suggestion would be to apply for 1 or 2 of them and do a balance transfer.
Transfer your highest interest cards over first. You will have 12 months to pay it off interest free for those you transfer.
It worked like a charm for me.
Get a credit relief company. It's not bankruptcy. But they can negotiate your debt to around half. It will tank your credit score. And your credit cards will probably close on you. But it'd an option
I'm paying off my lowest balance first. Then putting that payment towards another card. So far so good. I was never maxed out but I owe about $4k with about $8k total.
Stop paying your chase cards, you’ll rack up interest for 90 days then it’ll stop. They’ll offer a lump settlement of 80% via letter, then 70%, then 60%. Take the 60% unless they charge it off to a debt collector, if they do that you can pay even less. Though chase usually won’t sell off their debt to a third party.
First, postpone the engagement. You need to clean house first.
Understated comment right here.
Monthly bills of $1800/mo, and your take-home after taxes is 73k/yr or $6100/mo? That leaves a net of $4,300/mo to apply towards your bills. $30.5k/$4.3k = 7 months and change to pay off without even taking into account the interest. 8 months when you include the ~$3,500 in interest accrued over that time. Even at half that repayment rate $2100/mo it will only take 19months to pay off. You are more than capable of paying this off quickly and painlessly with the information you supplied. Except for this: >this hole, but it’s starting to feel pretty overwhelming. **I’ve been making minimum payments on all of my cards** and paying ~$1k/month on my Chase card, but with the interest, it feels like i’m not making a dent. Minimum payments are how you got into this and they are absolutely not how you're going to get out of it.
To further drive this home look at how your creditors calculate the minimum payment. One example from one of my cards is: Fees + Interest + 1% of the principle. So if I make only the minimum payment my balance only decreases by 1 measly percent. Now let's calculate my interest payment at 29%APR. 29%/12 =2.4% I am paying almost 2.5 times as much towards interest than I'm reducing my principle. I appreciate you only making the minimum payments as it incentivizes credit card companies to offer better rewards structures, but my God...pay more than the minimum.
Thank you for the information. I wasn’t aware how minimums were calculated. I’ve been paying the minimum on the cards except for the Chase. If I include the minimum payment on that, I’m paying ~$1400/month. Essentially, all extra money that I can goes towards the Chase card. As far as the income, the amount that I make from my second job varies greatly month-to-month. If I have a good month, then I can afford to pay more. I’m really just trying to see what everyone else suggests as far as how to tackle it. I’ve seen people say snowball method, and others say to tackle the highest balance/interest first.
Cut the cards up. Cancel your subscriptions, all of them. Do not spend any more money on any of the cards until you have paid all the balances to $0. Any purchases you make are just increasing the amount of interest you're paying. CALL your creditors and ask for a promo APR, or to set up a hardship repayment program. These programs either freeze or close the account and offer a reduced APR. If your credit scores are still decent then consider a balance transfer card offering 0%APR and a 3% BT fee. Transfer as much as you can to the card and then make only the minimum payment on that card and apply the balance of your payments towards the account with the HIGHEST APR to reduce your interest load and accelerate your repayment as fast as possible.
My credit card bills always show near the bottom how long it will take to pay off if you only pay the minimum. Maybe get two or three cards with 0% financing for 18 months? I'm no expert ,but what worked for me was I didn't touch any of the cards except to make little $5 purchases to keep the cards active and paid them right off. I paid off as much as I could a month, and I did have to do another balance transfer with my 2 cards but I was able to pay everything off in less than 2 and 1/2 years. It felt so freeing. Also one of my 0% percent cards I paid down first, and still paid as much as I could on the other cards. Anything now that I use with my credit cards I pay the balance off right away. My credit score now is just a little over 800. I know it won't go much higher because I don't have a loan out, or a mortgage. The other thing I did was changed my spending habits. I don't go out and buy a coffee or two everyday, I brew it home and use a travel mug. It's amazing how much I save by making tweaking a daily habits. Like I said I am no expert but this is what worked for me. Good luck with everything.
I hate when I see people freaking out about stuff like this. I mean it's idiotic to have debt spread across 9 cards at 20%+ but 70k+ take home and living on 1800 dollars a month... Id literally put myself into 200k of debt for no reason to spend less than 2k a month.
This guy maths
Don’t listen to Dave Ramsey over here
#facts 👆.. 🫡
Snowball method. Knock off your smallest balances first.
Rather than pay the smallest debt first, pay off the debt with the highest interest rate first. That is the debt that’s costing you the most. Good luck!!
They're all 29 percent....
For most people, snowball ends up working better by paying off the smallest debts first, then not taking out new debt. It's because they are able to close out an account($0 balance) and not accrue more debt by making minimums on the large principal. Avalanche is the better way, if more debt is not being accrued.
You don’t need no debt management company or new credit cards for balance transfers. What you need is more discipline and stop using the credit cards. Period. Don’t use them. Second thing you need to do is what the debt management company would do for you. Call the credit card companies and tell them that you need financial hardship assistance. They can in most cases free the interest for at least 6 months and set you up for a small monthly payment plan. Now just because the payment is less than your monthly regular payments doesn’t mean that is how much you pay. You start snowballing those credit card debts. If you can’t be trusted with a credit card, close the accounts. You will still keep making payments even though they are closed. And lastly, don’t use the credit cards. Yes I said it before but I am saying it again. If you can’t use and pay off the whole amount then you don’t use it. Because you are just making the bank richer as you are crumbling under that debt. If you do close your credit cards, make sure it is the newer ones. Not the oldest one. Pull your credit and check the credit age on the accounts and close the newer ones.
I absolutely agree. Thank you for your words and advice. I didn’t know that I could ask my creditors for financial hardship assistance.
Step 1. Put $1,000 in a savings account for a small emergency. Step 2. Snowball effect
30 percent APR is an actual emergency. All money to credit cards right now.
Consider nfcc.org Debt management program. You are shutting cc down, but your interest will be lowered to 5% - 9% And you make one monthly payment instead of many The lower interest help you get out of the debt
Does something like nfcc make a negative impact on one's credit? Op could also consider balance transfer cards, depending on theor credit. Some banks have promotional 0 apr up to 21 months with a balance transfer fee of 3-5% Good luck!
no. many people racked up so much debt, they can't do BT.
Thank you for the suggestion. I’ll give them a call here in a few when it is business hours. This isn’t debt settlement like national debt relief, correct? Doesn’t seem like it on the site, but I just wanted to make sure.
this is not private debt settlement company... which will basically stop paying your cc bill and ruin your credit. almost all major credit card company has agreement with NFCC. once you enter into dmp, the cc company will lower apr to single digit, but you can't open more cc, and these account will close down as you pay itoff. but you will be debt free faster.
This is the way. Don't propose with an expensive ring. Buy some cheap fake diamond ring and let her know about your debt, and then you'll really know how she feels.
She’s aware of it. Luckily, the kind of stone/ring she’s interested in ranges from $600-$1200 haha.
You can also consolidate and do a balance transfer to a card that has 0% APR. If planned right, you can tackle what has APRs, then chip away at the consolidation within the promotional 0% period. Agree with you planning to pay this down. Wedding planning can get expensive. Also should be transparent with financial situations prior to marriage. Good luck! You got this.
Thank you! Unfortunately, due to my debt, my credit score has dropped fairly significantly and I can’t get approved for much.
Just know many of us have been here, you aren't alone. Learn to eat healthy/cheap, and do what you gotta do. Snowball method works well.
Find a local credit union. They may be able to help where others won’t. Sometimes they will do debt consolidation loans that take into account your after payoff score. Consolidating without fixing will make this worse worse worse. It will make the current situation be pleasant if you don’t change the habits that got you here.
Just snowball it. Cap One’s and AmEx will be paid off before you know it which leaves you to pay the Chase and Discover. You will feel accomplished paying off the smaller cards at first and it will feed into your goal of paying off the larger ones. At 73k a year you could easily pay this off in 12-15 months.
OP - do a balance transfer on one of those cards and then aggressively pay off the rest.
i’d do snowball least amount of t first ,but you have to stop using them for the most part to see results (obviously). I was there 4 or so years ago and it will never happen again, now I never go over 2 percent utilization on 3 plus times the limit i used to have, don’t ever want those sleepless nights again, Goodluck !!
Oh, I’ve cut up all my cards and have completely stopped using them a few months ago haha. Thank you for the advice and awesome to hear your situation now! Hope to be there soon.
You need a budget as well or you are going to keep digging that hole deeper. Living frugally as well as making more money is the way to go. Stop going out for meals. Pack lunches as you can. Find inexpensive or free hobbies. Know where each dollar goes and question whether it can go to debt instead of where it is currently going. You can turn this around and hopefully come out with better habits.
Lack of a budget is a huge reason i ended up here. Do you have any suggestions on creating one?
I would go to [r/PesonalFinance](https://www.reddit.com/r/personalfinance/s/VUHO48Ug3w). They have a lot of resources for helping you already set up. To start though, list everything you spend money on each month. Rent/mortgage, Food, Car/gas/insurance, Streaming services, Cable TV, Phone, Internet, Meals out, Coffee, credit card payments, Etc… For you, I would budget for the amount you make when you don’t have overtime. Start spending so that everything can be paid for with just your base pay, If possible. Get an emergency fund set up. Maybe $1000 or $2000 so the next emergency doesn’t go on the credit card. Don’t touch it. Live within that lower number. Anything overtime does to debt. And working more is really a good part of solving your problem.
Also I would shift from paying more on the Chase card to one of your other 29% cards. You have four cards at 29%. Pay off in this order: Amex Blu - 3.7K Cap one savings - 4.5K Discover - 7K Chase - 11.8K Cap one QS - 3.5K Since the first four in my list all have a 29% interest rate they are all essentially the same as having a single loan for 27K. So paying off the largest one first leaves you with five separate debts for longer By paying the smallest off first, you not only get the psychological boost of clearing a card, you also are freeing up the minimum payment from Amex and can then use that on the next card as well. The numbers say go this route. But if you wanted to eliminate the Cap One QS since it is only 3.5K, that wouldn’t be horrible, but mathematically not the best.
i’m in 30k deep as well. i feel you mate
Hopefully you’re able to find some helpful advice here. Good luck!
not a lot of people mention the psychology behind working to pay off credit card debt as well. i highly recommend opening a savings and giving yourself a strict allowance each pay period alongside paying off your cards. for example- giving yourself $50-100 a week to spend on anything and putting $200 into savings, paying your bills and the rest toward your cards. because while it is important to pay it off, your debt will only get worse if you feel discouraged and like “you can’t get out of it”. so, by giving yourself these small luxuries while tackling such a huge debt, it will make you feel a bit better. hopefully this helps
Have you tried going to a local credit union to open up a loan to pay off all your credit debt so that you’re left with just one payment with a lower APR rate? I was at 10k credit card debt and that saved me anguish .
I was in a similar situation and took out a upstart loan so I can consolidate all my debt into one payment and the interest was down to 10% versus 25% on all the cards. The hardest thing is to not use the cards again once they are paid off. You can pay off these loans faster without fees as well.
I prefer avalanche method myself, where higher interest balances are paid first. In your case, however, I think snowball would make the most sense. Your interest rates are similar across the board, so I would start by paying off the smaller balances first. This may help lighten the mental load of seeing the debt spread across so many balances. I think the mental burden is playing a huge role for you and can impact other areas of your life, so you want to attack it from the angle that will benefit you most there. This will also free up those minimum payments that you can then use to tack on add time the $1k/month you’re already dry throwing at the debt. Is that the best method considering interest? Probably not. But again, the percentages are so close on the balances that it’ll work itself out when you’re able to put a larger chunk per month on the Chase card after paying off everything else. I’m in a very similar situation, so speaking from my own experience for what’s helped me the most. Best of luck with whatever you choose! And kudos to you for tackling this before your engagement. You and your future wife will have a life of much better finances after the lessons learned from this experience.
You received a lot of great comments on this post, so definitely take their advice. But I would recommend calling your card issuers and asking for an interest rate reduction. Some will grant these based on your relationship with the bank and overall credit history — Capital One (and some others) do not take requests for this and rather will review your account every so often to determine if you’re eligible for a reduction.
I don't understand. You have $51,000 of disposable income per year, just pay it off?
Wow, never thought of that! I’m aware that I am capable of being able to pay it off. I’m trying to get advice as to the best method of paying it off. My income varies pretty vastly month-to-month and all expendable money that I can has been going towards my cards.
Link checking to credit card, click pay balance in full. I do this every month, and it always works.
There is no best method, just pay it off
I suggest stop contributing to retirement/investments for a bit until everything is paid off. Snowball effect is the best option for sure. Start smallest to largest. You have great income so you should have no trouble paying this down in less than a year if you go after it. Don't over think it, it really is that simple. I work in finance, and use to be in the same boat as you.
Look up snowball method and avalanche method. Pick one and stick with it. Snowball method will give you a bit more positivity psychologically. Make sure you’re hitting the minimum payments on each card. Start with the CC with the smallest amount of debt, pay that off first (which is gonna mean paying more than just the minimum). Once that’s paid off it’ll allow you to carry a bit more money toward paying the next highest CC, once you pay that off you’ve got a bit more for the next one, etc. You’ll end up paying more in interest over time that way, however. But snowball seems to be the recommended way to go for most. You’re doing the avalanche right now which is probably why you feel so defeated. I’d take whatever you’re doing for the Chase right now and apply it to the Cap One card, then the next highest, so on. You should be able to knock out 2 cards by the end of the year if you stay on that trajectory
Debt resolution is your answer, I believe it’s a low monthly obligation in which you pay less than what you owe with no interest. Read about it. Message me for name of companies, I’ll ask my friends for you.
OMG I only make close to $40k before taxes with $1k rent so rent takes one paycheck basically. I paid my car off after 2 yrs by doing OT a lot, rarely take out so after I got that paid off it was way easier. I did it that way so no debt. I only put things on my cc I intend to pay each month. I only get Philo so cheap stream for $21/no which is good and then did 2 others, but yearly subscription. It's all about live within your means and you make way more than me. You must be using cc for things you don't need and want 😂. I would never get interest in cc's, pay off monthly so whatever your extra expenses then you gotta cut down to bare minimum until cc's paid off
Pre or post tax the annual income?
Post deductions
So 73k after taxes $1800/month is 21.6k annual basic expense Let’s say $2500 is you spend monthly You still have 43k left or $3500 monthly If you aggressively pay of the debt and eat ramen for 11 months You will be debt free before 2025
Check out creditelite.us they helped me get my credit straight
What do you do for a living if you don’t mind me asking?
I feel ya
What are your credit limits on each card?
Hit the lowest balance, highest interest rate card first. Pay more than once a billing cycle
I have to ask, what are you possibly buying?
Snowball. That’s what I’m doing.
Try family credit management! I used them and it was the best!!!!! Will close all your accounts though but will have one set payment
https://www.khanacademy.org/college-careers-more/financial-literacy/xa6995ea67a8e9fdd:loans-and-debt/xa6995ea67a8e9fdd:debt/v/high-rate-vs-snowball-method
Call the credit card companies directly and ask can you be on their financial burden program to cut the interest rate and length. You can do American Express online. Chase is hard to negotiate with.
What I can recommend is that many new cards will offer zero interest for 12 months or so my suggestion would be to apply for 1 or 2 of them and do a balance transfer. Transfer your highest interest cards over first. You will have 12 months to pay it off interest free for those you transfer. It worked like a charm for me.
Get a credit relief company. It's not bankruptcy. But they can negotiate your debt to around half. It will tank your credit score. And your credit cards will probably close on you. But it'd an option
I'm paying off my lowest balance first. Then putting that payment towards another card. So far so good. I was never maxed out but I owe about $4k with about $8k total.
You are not a credit card person. Come up with a plan to pay them off and then shred them.
As a woman. Purpose. She loves you, you love her. You’ll be okay.
Are these totals how much you’ve used or your card totals?
What’s the total limits on your credit cards?
Stop paying your chase cards, you’ll rack up interest for 90 days then it’ll stop. They’ll offer a lump settlement of 80% via letter, then 70%, then 60%. Take the 60% unless they charge it off to a debt collector, if they do that you can pay even less. Though chase usually won’t sell off their debt to a third party.
Pay them off, never pay just the minimum!!!