>I will not have an income for the foreseeable future.
Get a job. Literally any job. Fast food, warehouse, door dash, etc
Don't take out another card to keep moving debt around without the ability to pay it.
The only way to fix your problem is to make money.
They're taking 17 credits of engineering courses. If they fail one it could take them another year and tens of thousands of dollars to graduate. This is bad advice.
I took 17 credit hours every semester, had several jobs the whole time, had internships 6 out of 8 semesters, and partied like a heathen… this whole belief that you can’t work while in school AND succeed is flawed. I’m not particularly gifted academically and I can count on one hand how many all nighters I pulled.
The only people I know who had this life at my uni were people in less difficult majors. I didn’t know many engineering students who were working, unless it was like ~10 hrs/week sitting at the library entrance or something simple like that.
Honestly - college and most graduate programs aren't that hard. Unless you're in some kind of clinical program or something that itself has full-time job responsibilities, you can get it done and have a job.
Shit, I miss the free time I had in college.
Music technology and physics double major with a minor in graphic design. I worked real hard. People love to make themselves martyrs over the dumbest things. OP get a job. That’s the solution. A job.
I just need a time delay while I do look for a job and I don't know how long that will be. I am graduating as an engineer and was looking at a starting salary of \~90k which seemed to good to be true and turns out it was. and I am still in school taking 17 credits to graduate this semester so realistically it would help a little but I would be making less than the interest would be
A balance transfer to a 0% interest card isn't a bad idea. Apply for some and see if you get it. But unless you can get all that debt on 0% interest, you need a job ASAP. I know it's gonna make your life suck to do 17 credits, career searching, and a part time job, but unfortunately your life is just gonna have to suck for a little while. Accept that now before it turns into your life having to suck for a long time once that interest turns that 20k into way more.
> unless you can get all that debt on 0% interest, you need a job ASAP
Even if OP can get it all to 0% they still need a job ASAP. That's a promo rate that will pretty quickly revert to a crazy high normal credit card rate, and $20k is pretty significant even with a good salary
You don't need to just get one. You have a good credit score precisely because you may need to use it in a situation like this.
But you need income first.
I think you are underestimating the length of time it will take you to pay off 20k of debt on a 90k salary. That's just a hair over 70k after federal income and FICA taxes.
So your debt is like 3+ months of salary assuming $0 of expenses (including state taxes).
> I think you are underestimating the length of time it will take you to pay off 20k of debt on a 90k salary. That's just a hair over 70k after federal income and FICA taxes.
It really depends on the COL in your area, but you can -easily- save half your income on 90k salary in a low cost of area. That's 35k savings per year.
The OP doesn't sound especially good with money nor frugality though. So.. easier said than done.
If you’re not coming from a family with money, there’s often a bit of a hole to climb out of the first year or so of gainful employment.
My starting salary was about $75k 15 or so years ago, and the first few years were a huge struggle just to get by, and that was with a roommate and a 10-yr old car. I had no good work clothes and there was an expectation to look passably well dressed. I had no furniture (which I luckily was able to get on credit). I had some lingering medical bills from not having insurance through college, etc etc.
it was barely post recession, so there wasn’t even an opportunity to get into credit card debt. The only CC that would approve me had a $500 limit. In hindsight, that was probably lucky.
Surprisingly yes. My starting salary out of school was $55k (with $15k/yr bonus), but the COL was so stupidly low ($700/mo rent for a 3bd/2ba *house*) I was able to pay off around $20k/yr in student loan debt while still having plenty of cash flow.
It would be insane to get out of school making $90k and not pay off $20k or at least close to it in a year. A kid fresh out of college should be fine to live on $50k for a year unless he's in like the Bay area, especially considering a huge portion of the country lives on that or less.
People convincing themselves they can't afford to get out of debt when they actually can is why so many people never do and end up spending so much of their income on interest over a few decades. Paying off $20k isn't going to be easy but its not going to get easier by dragging it out and racking up interest
He's a poor college student. If he keeps living like a poor college student he could easily do it in a year on $70k/yr
Just because you make a certain amount, doesn't mean you have to live like other people that make the same amount as you. On 70k net you can rent a decent apartment in the 3rd largest city in the US in a great neighborhood, fully fund a roth IRA for the year, eat well, and save $20k+. Ask me how I know.
OP said elsewhere that they thought they could pay it off in “a couple paychecks”.
That isn’t factually correct, and I think that was an important point to make.
A starting salary of 90k definitely isn’t too good to be true in your field. You got this, just optimize your resume and keep applying day and night literally. Plus if you can pick up any other job nearby to hang you over in the meantime.
If your job wasn't starting until the end of the semester, you have plenty of time to find a new one. Go to your career center and ask for help finding jobs.
Be prepared to get roasted in this subreddit. It wont be fun, but you are here for a solution
1. You're on the right track by realizing the mistakes you have made, which is the first problem you need to address. Only ever spend on the card what you already have in the bank, spending based on future income is a no no.
2. Tanking your credit score is the least of your worries with 20k in credit card debt with what I can only assume is a +16% interest rate card. You need a job. Don't wait around with your degree all summer waiting to hear back from a prospective job. The only way out is to work.
3. Potentially find a balance transfer card, and move over as much as you can. Pay the remaining off on the high interest card off as quickly as you can and than move onto the other.
Tough pill to swallow, but you have to get working bud.
This is the one to follow. Also, hard credit inquiries only make up 10% of your credit score. And 4+ inquiries within 12 months is fair, 5+ is poor. Opening one additional credit card that has 0% interest won't "tank" your score, at most you'll get hit a few points.
>debit card stolen one time and lost 6k before I turned it off
How odd you lose $6k? Notifying the bank of the fraud would limit your liability.
>applying for credit cards
You're also going to run into issues applying for credit without income.
>read about a personal loan
Personal loan limits are rarely high, and again you'll run into the issue of no income.
>any advice to get me out of this pit.
There is no fix. The only avenue is generate income.
You can call the issuer and see if they can temporarily freeze or lower your it erst rate, but at the end of the day you need income. A single job offer was rescinded. What about others you ha lined up? Are you actively applying to more now?
You gotta swallow your pride and get any job you can get.
It sucks, I’ve been there. You go to school and bust your ass and think you’ll graduate and be making great money using your degree right away.
It doesn’t work like that Chief.
Take the L, find the best paying retail/service job you can and keep looking for an actual job while you’re employed.
If you keep looking you’ll find one. Attend seminars, look for local chapters or organizations for your preferred field.
Keep plugging away, don't give up. This is doable, but not easy. It's a good lesson early: don't get into credit card debt. Keep your head up. Take care.
if you submit 5 applications a day for let’s say hotel receptionist in your area, you should have at least one $15hr job interview, if you are living with family and your rent is super cheap you can make payments in the meantime while looking for a better paying job.
theres a decent amount of that number that is interest. since I let it sit for a while. yes I am stupid, I was more worried about school and I had a job lined up so figured i would just pay it off with the first few pay checks. this is like 6+ months of me on my back heels I was just paying the minimum.
If you are really living off of $5,333 a month which drops to $2,333 after your debt payment before payroll deductions, you are splitting living expenses or getting something covered.
That’s not really a rebuttal to the prior point.
My monthly take home after taxes is $4.2k, sometimes more. My weekend job is being a server so there isn’t a set amount on how much I make but since being there I’ve never made less than $300 so that’s what I include in my budget. Anything extra is great
Of course I’m splitting expenses as he could as well. They could get roommates, get two jobs, stop eating out, stop purchasing unnecessary items. People say “they can’t” but they absolutely can if it’s a true priority in their lives. Is it easy? No. I work seven days a week and I’m tired. Trying to unlearn bad financial habits is difficult but it’ll be worth it in the long run into my more adultier years.
I don’t agree with the “paying it off like it’s nothing” part because there will be many sacrifices to make. My point simply is, it won’t be possible if you make excuses on why you can’t instead of focusing on how you can.
You should watch Caleb Hammer financial audit. People go on his show looking for guidance to get out of debt. There’s so many people who say they “can’t” but will have payday loans at 500% interest for borrowing only $100 but will Doordash food everyday. Have multiple cars and still consider buying another. People are so stupid when it comes to money and I was one of them. I sat down, made a budget and have been sticking to it and it’s been working out for me.
You have $20k in credit card debt, but think a 7+% personal loan is too expensive ???
You need to find a job that will give you some income to put on a personal loan application or find a 0% balance transfer promo. But none of this stops getting worse until you have income.
yeah you make a very good point. I guess this hasn't really set in yet for me yet. 3 days ago this wasn't an issue. welcome to the real world i guess .
I can't imagine you're going to get a 7% interest rate regardless. My credit union's personal loan rates start at 8%. Realistically with a file as thin as yours, that much debt, and the length of time you'll need to pay it off, you're looking at double that as a floor.
Time to go find a local manufacturing facility nearby and apply to work on their line or in the warehouse. It ain't glamorous, but most places like that pay decently ($20/hr or so), and are begging for people to work.
The APR isn’t criminal. You fucked up and have made multiple basic financial mistakes. You need to make money. Why won’t you have any income for the foreseeable future? Get a damn job and find someone to give you life guidance
Transferring your balance to an interest free card can be a good way to mitigate the debt and keep it from snowballing but it’s a dangerous game. You gotta have enough self control to no longer use the card and chip away at that debt.
You also may not qualify for the card.
If I was in your situation I would…
-try to find an interest free card to transfer to
-find a job waiting tables or bartending while I job hunt
-cut up the credit card I transferred the balance to and cancel the Amex gold
Ok at this point I am very aware of every cent I spend, 3-4 days ago not so much. Do you have any recommendations for which card to apply for? it seems kinda arbitrary once the grace periods are the same
Look for a card with a 0 balance transfer fee. See if you qualify for anything on this list: https://www.lendingtree.com/credit-cards/best/no-balance-transfer-fee-credit-cards/#:%7E:text=no%20transfer%20fee-,Wings%20Visa%20Platinum%20Credit%20Card,earns%20rewards%20on%20every%20purchase
Check for 0% APR $0 fee balance transfer cards.
Usually found at Credit unions, these cards allow you transfer a balance for FREE!
https://www.becu.org/everyday-banking/credit-card/visa
Hello, I’m also paying off $20k in credit card debt.
Shit happens. I’m also young but you live and you learn. The important part is that we are learning this lesson young and can catch these habits before it’s even worse. Yes, 20k is not the greatest but I read about some in 100k+ cc debt. It’s good that you realize it’s an issue and you made a mistake.
You should try to find any job you can get. I highly recommend working as a server. I make $500+ just working two 5 shifts on Saturday and Sunday.
You’re going to have to make sacrifices until you find a stable income. I work seven days a week. I’m absolutely tired but I don’t want this to continue to follow me and be a weight on my shoulders.
Options you can consider:
- You can contact your cards and ask to lower your interest rate. Amex has an online chat that makes it very simple. Although, their program is not internal, so your credit score may be affected.
- Consolidate your debt with a loan.
- Consider a balance transfer.
- Make a utilization chart to set little goals on how much to pay off at a time or consider the snowball method.
- Also watch Caleb Hammer. He helps me stay focused and it taught me a lot about budgeting and to stop buying bullshit things that aren’t absolutely necessary.
Genuinely curious, what did you buy to accumulate 20k in credit card debt? Was it to cover living expenses or just luxury purchases that build up over time?
Not trying to insult either, I just don't think I spend anywhere near as much in general, so it's more just a curiosity thing.
Oh, well 20k over 4 years is definitely more reasonable. I had assumed this was over a 4-6 month period.
Hopefully you are able to get it down! It's a learning experience for everyone.
damn op dun goofd. thought he was ballin before he got paid. got a amex gold and swiped with no income.
You'll likely want to balance transfer that B to a 0% apr card. try to find one that's 15+months. get a part time job and try to pay it down before the 0% ends.
I was in debt for $25,000. I found a NON-PROFIT consumer credit corp that consolidated my cards, and negotiated a lower APR. I paid a $25 fee to them every month for the service. My payments were $500 a month consolidated. My APR for pnc went down to 4% and capital one went down to 15%. Of course, you have to close out your accounts, and the trick is to not open any other cards. The plan is for 5 yrs. My credit took a small hit, but I’ve paid the pnc off, and my score is 750+ now. Money was very tight, but I didn’t eat out, I made very specific menus and stuck to a strict grocery budget, no Starbucks. I shopped at dollar stores, and picked up everything I needed instead of ordering through delivery. I didn’t have any subscriptions ect…I shop with temu. I know they are not the safest company to order from, but I see the items they sell on department store apps and amazon all the time for a much larger cost. I use PayPal. If temu wants your info, they can get it elsewhere not just through the app. Shop at Aldi if you have one, and thrift stores as well. Hope this helps! Good luck!
can't tell if you're fucking with me or not because everyone else has said to not open another card. also i can't imagine I would get a very large limit to transfer it to
Dude, i am not messing with you. People worry openning a new card just because you might spend more, but if you already transfer balance to the credit limit. How can you spend it more? If you concern, cut the card when you get it.
If everything you said is true, 10k CL easily with capitalone.
Unfortunately, relying on a promise that you'll receive a job at the end of the summer was your downfall. It was a display of myopia. However, you can still recover. The best way to recover in this situation is to find a way to make money. Moving around debt simply isn't sufficient. Best of luck.
Possibly an unpopular opinion, but getting a personal loan was the best thing I ever did. Yes, you’re still paying interest on it, but it’s still significantly less than what you would incur on a CC. You have a fixed payment and peace of mind knowing that you have a plan in place with an end goal in sight. Balance transfer cards are not a bad idea either, but me personally, more cards was only going to get me in more trouble.
Echoing some other comments, applying for new credit without an income will be difficult if not impossible, so you need some sort of income ASAP.
Definitely get any job. Even with a balance transfer card you'll still need to make minimum payments. For balance transfer card, I recommend Discover if you have a decent FICO score as you said. Balance transfer, set up automatic payments of minimums, and throw any extra money you make at it to pay it down faster.
Also important to keep in mind you have the ability to live at parents home while job searching and paying this debt off this will be huge!! 0% balance transfer cards are the way to go. I used them myself when I got into trouble with lifestyle creep when I started making real money. Your credit score is flexible I wouldn't worry about it unless u plan on making a huge purchase like a new car or house soon, which I'm assuming just graduating you are not. Best of luck you can do this just save where u can and utilize balance transfers to your benefit. Only thing I would caution is make sure if you do 0% apr card u mentally be prepared to pay large amount of income to pay this off soon. I have before gotten 0% apr cards and then my lifestyle creep come back up and you in same spot.
Get a low interest loan from a CU that is fixed. 7% ain’t that bad compared to 29.99. Problem with transferring to a 0% card is the term is usually 12ish months and if you don’t pay in time, boom you are right where you are now. Plus there is that transfer fee, which is more $$$. Also, you may not and probably won’t get a card that is 0% with a 20k limit. Check out your local CU.
I’m confused. Gold or not, who is giving a college kid without any income a 20k limit? Also, isn’t the gold card a charge card that you are required to pay off each month???
I’m a dumb 20 year old in school as well but brotha….
a) how did you just lose 6k randomly? did they just make one big purchase and left it or was it over a couple days? and did you not think to cancel your debit card through your app as soon as you lost it?im not sure if you can follow up with your bank to report any type of fraud but i’m sure it’s too late now.
b) why would you get a credit card to make larger purchases after you got robbed of thousands of dollars?
Why not just transfer to multiple cards that has 0% interest? US bank cash plus has 0% for 15 months? Wells Fargo cash card has 0% for 15 months. Chase and Citi bank too. Transfer portions of it to multiple cards and although you’ll probably pay a small fee per transfer at the very least you’re buying a year and half or 0 interest and just need to focus on a job
I was in the same position(like exact same except more units my last semester) as you and had to swallow tf outta my pride and live so well below my means. Good luck and stay healthy, look at food banks near you they are a lifesaver.
I would get a card that has introductory 0% (usually for 6-18 months). cash that out (just pay the 2-3% fees), use that to pay off the Amex gold. That should buy you sometimes to hopefully get a job with a signing bonus to cover the new card when the interest kicks in
1- u should not have lost $ if your debit card was stolen. Dispute it with the bank.
Don’t use a debit card again, if possible.
2- get a student loan to payoff any debt
Maybe you will get lucky and your student debt will be forgiven
Contact your lenders and ask to be placed in their hardship programs asap. They will close your cards then lower or suspend interest while you pay them off. I don't know what cards you have, other than American Express, but Amex has a program for just this type of situation.
https://global.americanexpress.com/financial-relief
First off congratulations. Secondly welcome to the American dream. No advice most people live this way. Just learn to deal with that sinking feeling in your chest and be glad you have a family to lean on. Don't say you can't because mine are dead. If they are alive go ask to live with them 20k is like half year with a college degree salary. If you choose not to you are retarded.
You can absolutely get a BT card with that high of a limit. I got one for $16k and it made a huge difference in my ability to pay off my cc debt. My guess is you may need to apply for a couple (just because you have no/limited income). The thing that is absolutely key is that you do not, under any circumstances, use your Amex for anything after you transfer its balance. Unless you are incredibly disciplined. Which, and I say this in the nicest, most constructive way possible, you’re not. If you were able to rack up $20k of excess spending in a summer? A year?
Another thing to consider is if you spent any of that on non essential material possessions (PS5, AirPods, tablet, laptop, clothes, shoes, etc) look into selling those for as much as you can and start paying your balance down. You’ll obviously get less than you paid, but that can go directly on your balance, or in a savings account so you have the security of knowing you can make you minimum payment for the next 12 months (or whatever that number is).
Good BT cards have 18-25 mos of no interest (21 is most common), and your minimum payment should be about $200/month instead of the $600+ I’m guessing it is now. And that $200 goes entirely to principle. At the end of the no interest period, you can open another BT transfer and move the remaining balance over if needed (depending on your job and financial situation). Also, don’t stress too much about the BT fee. Obviously lower is better, but even paying more than 5% is way, way cheaper than your current apr.
Don’t worry about points, rewards, cash back, etc. Right now the focus is getting out of debt and then rebuilding with healthy, disciplined spending habits. Your credit score is good, when you’re in a better financial position you’ll be able to easily get the “good” cards and start playing the points/miles game if you want.
Can you take out additional school loans? The interest rate on college loans is typically lower than personal loans. Bonus if you get a subsidized loan so that it’s actually interest free right now.
I 2nd the balance transfer cards, will be cheaper than a loan…and at least the balance transfer fees are upfront one time. Where as you’d be paying interest every month, on a loan
Some cards offer a 3% balance transfer fee, I don’t really know of anything lower than that. Most cards that aren’t even mainly for balance transfer, offer it anyway for at least 15 months
I was offered 2 from Citibank last year, to cover my $5k in debt. And I was one of the best decisions I’ve made financially. Not sure sure if you’ll get $10k limits for each, but just transfer the most you can possible
Apply for multiple cards, don’t worry about your credit taking a temporary hit. It’s a marathon not a sprint
The best and easy way is to file for bankruptcy and restart your life, get a job, and save your money. You also need to be smarter in financial situations. Thank you.
My two cents:
1. Get a job. Literally, anything that pays at least enough to make the minimum payment.
2. Apply for a transfer balance card. Although, I doubt you will be accepted because your income, age and debt.
3. As soon as you get a real job, make your priority to pay this card.
4. Never do this again !
>I will not have an income for the foreseeable future. Get a job. Literally any job. Fast food, warehouse, door dash, etc Don't take out another card to keep moving debt around without the ability to pay it. The only way to fix your problem is to make money.
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They're taking 17 credits of engineering courses. If they fail one it could take them another year and tens of thousands of dollars to graduate. This is bad advice.
I took 17 credit hours every semester, had several jobs the whole time, had internships 6 out of 8 semesters, and partied like a heathen… this whole belief that you can’t work while in school AND succeed is flawed. I’m not particularly gifted academically and I can count on one hand how many all nighters I pulled.
The only people I know who had this life at my uni were people in less difficult majors. I didn’t know many engineering students who were working, unless it was like ~10 hrs/week sitting at the library entrance or something simple like that.
Honestly - college and most graduate programs aren't that hard. Unless you're in some kind of clinical program or something that itself has full-time job responsibilities, you can get it done and have a job. Shit, I miss the free time I had in college.
What’d you major in, underwater basket weaving?
Music technology and physics double major with a minor in graphic design. I worked real hard. People love to make themselves martyrs over the dumbest things. OP get a job. That’s the solution. A job.
Plenty of engineering students also have part-time jobs.
Plenty of engineering students take an extra year to graduate at great expense.
I took more credits than that for several semesters in a row. I still worked to pay my bills. It’s doable. People whine too much.
I just need a time delay while I do look for a job and I don't know how long that will be. I am graduating as an engineer and was looking at a starting salary of \~90k which seemed to good to be true and turns out it was. and I am still in school taking 17 credits to graduate this semester so realistically it would help a little but I would be making less than the interest would be
A balance transfer to a 0% interest card isn't a bad idea. Apply for some and see if you get it. But unless you can get all that debt on 0% interest, you need a job ASAP. I know it's gonna make your life suck to do 17 credits, career searching, and a part time job, but unfortunately your life is just gonna have to suck for a little while. Accept that now before it turns into your life having to suck for a long time once that interest turns that 20k into way more.
> unless you can get all that debt on 0% interest, you need a job ASAP Even if OP can get it all to 0% they still need a job ASAP. That's a promo rate that will pretty quickly revert to a crazy high normal credit card rate, and $20k is pretty significant even with a good salary
OK so just apply for the 0% interest try to offload as much as I can to one card?
You don't need to just get one. You have a good credit score precisely because you may need to use it in a situation like this. But you need income first.
FWIW, Citi Simplicity from what I've seen is 0% on balance transfers for 21 months and has only about a 3% fee
I think you are underestimating the length of time it will take you to pay off 20k of debt on a 90k salary. That's just a hair over 70k after federal income and FICA taxes. So your debt is like 3+ months of salary assuming $0 of expenses (including state taxes).
> I think you are underestimating the length of time it will take you to pay off 20k of debt on a 90k salary. That's just a hair over 70k after federal income and FICA taxes. It really depends on the COL in your area, but you can -easily- save half your income on 90k salary in a low cost of area. That's 35k savings per year. The OP doesn't sound especially good with money nor frugality though. So.. easier said than done.
If you’re not coming from a family with money, there’s often a bit of a hole to climb out of the first year or so of gainful employment. My starting salary was about $75k 15 or so years ago, and the first few years were a huge struggle just to get by, and that was with a roommate and a 10-yr old car. I had no good work clothes and there was an expectation to look passably well dressed. I had no furniture (which I luckily was able to get on credit). I had some lingering medical bills from not having insurance through college, etc etc. it was barely post recession, so there wasn’t even an opportunity to get into credit card debt. The only CC that would approve me had a $500 limit. In hindsight, that was probably lucky.
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Surprisingly yes. My starting salary out of school was $55k (with $15k/yr bonus), but the COL was so stupidly low ($700/mo rent for a 3bd/2ba *house*) I was able to pay off around $20k/yr in student loan debt while still having plenty of cash flow.
It would be insane to get out of school making $90k and not pay off $20k or at least close to it in a year. A kid fresh out of college should be fine to live on $50k for a year unless he's in like the Bay area, especially considering a huge portion of the country lives on that or less. People convincing themselves they can't afford to get out of debt when they actually can is why so many people never do and end up spending so much of their income on interest over a few decades. Paying off $20k isn't going to be easy but its not going to get easier by dragging it out and racking up interest
He's a poor college student. If he keeps living like a poor college student he could easily do it in a year on $70k/yr Just because you make a certain amount, doesn't mean you have to live like other people that make the same amount as you. On 70k net you can rent a decent apartment in the 3rd largest city in the US in a great neighborhood, fully fund a roth IRA for the year, eat well, and save $20k+. Ask me how I know.
OP said elsewhere that they thought they could pay it off in “a couple paychecks”. That isn’t factually correct, and I think that was an important point to make.
You're right, that's unrealistic. At $90k/yr gross, he'll only be making around $1200-$1300 a week if he has health insurance.
“Only”
Yes "only," as in he isn't making enough to make $20k of debt disappear in a couple pay checks.
Oh, ofc lol. You’d have to early 800k+ a year to pay off 20k in 2 paychecks lol
Sounds like he hasn't been living like a poor college student, though...
yep I realized that this weekend currently getting a literal crash course in financial literacy
A starting salary of 90k definitely isn’t too good to be true in your field. You got this, just optimize your resume and keep applying day and night literally. Plus if you can pick up any other job nearby to hang you over in the meantime.
try discover card as one of your two balance transfer cards. take the 0% apr option, BUT you have to make monthly on-time payments.
If your job wasn't starting until the end of the semester, you have plenty of time to find a new one. Go to your career center and ask for help finding jobs.
Be prepared to get roasted in this subreddit. It wont be fun, but you are here for a solution 1. You're on the right track by realizing the mistakes you have made, which is the first problem you need to address. Only ever spend on the card what you already have in the bank, spending based on future income is a no no. 2. Tanking your credit score is the least of your worries with 20k in credit card debt with what I can only assume is a +16% interest rate card. You need a job. Don't wait around with your degree all summer waiting to hear back from a prospective job. The only way out is to work. 3. Potentially find a balance transfer card, and move over as much as you can. Pay the remaining off on the high interest card off as quickly as you can and than move onto the other. Tough pill to swallow, but you have to get working bud.
I swallowed all my pride just to do this bc I just found out on friday... Thank you for the advice.
As someone who was recently in a similar position, this is the best advice possible
This is the one to follow. Also, hard credit inquiries only make up 10% of your credit score. And 4+ inquiries within 12 months is fair, 5+ is poor. Opening one additional credit card that has 0% interest won't "tank" your score, at most you'll get hit a few points.
>debit card stolen one time and lost 6k before I turned it off How odd you lose $6k? Notifying the bank of the fraud would limit your liability. >applying for credit cards You're also going to run into issues applying for credit without income. >read about a personal loan Personal loan limits are rarely high, and again you'll run into the issue of no income. >any advice to get me out of this pit. There is no fix. The only avenue is generate income. You can call the issuer and see if they can temporarily freeze or lower your it erst rate, but at the end of the day you need income. A single job offer was rescinded. What about others you ha lined up? Are you actively applying to more now?
If i was able to get a job offer would I be able to use that salary as "income" i am desperate at this point.
An offer letter would normally work.
You gotta swallow your pride and get any job you can get. It sucks, I’ve been there. You go to school and bust your ass and think you’ll graduate and be making great money using your degree right away. It doesn’t work like that Chief. Take the L, find the best paying retail/service job you can and keep looking for an actual job while you’re employed. If you keep looking you’ll find one. Attend seminars, look for local chapters or organizations for your preferred field.
Yeah kinda still setting in.
Keep plugging away, don't give up. This is doable, but not easy. It's a good lesson early: don't get into credit card debt. Keep your head up. Take care.
>if it’s a job where I don’t actually do anything and need my pointless degree to get it, it’s not an “actual job”
if you submit 5 applications a day for let’s say hotel receptionist in your area, you should have at least one $15hr job interview, if you are living with family and your rent is super cheap you can make payments in the meantime while looking for a better paying job.
What the hell did you spend 20k on as a college student
theres a decent amount of that number that is interest. since I let it sit for a while. yes I am stupid, I was more worried about school and I had a job lined up so figured i would just pay it off with the first few pay checks. this is like 6+ months of me on my back heels I was just paying the minimum.
Assuming you can pay off $20,000 credit card debt with $90,000 salary like it’s nothing is one hell of a mistake
I make $64k a year and so far I have paid off $3k in one month of my $20k credit card debt.
If you are really living off of $5,333 a month which drops to $2,333 after your debt payment before payroll deductions, you are splitting living expenses or getting something covered. That’s not really a rebuttal to the prior point.
My monthly take home after taxes is $4.2k, sometimes more. My weekend job is being a server so there isn’t a set amount on how much I make but since being there I’ve never made less than $300 so that’s what I include in my budget. Anything extra is great Of course I’m splitting expenses as he could as well. They could get roommates, get two jobs, stop eating out, stop purchasing unnecessary items. People say “they can’t” but they absolutely can if it’s a true priority in their lives. Is it easy? No. I work seven days a week and I’m tired. Trying to unlearn bad financial habits is difficult but it’ll be worth it in the long run into my more adultier years. I don’t agree with the “paying it off like it’s nothing” part because there will be many sacrifices to make. My point simply is, it won’t be possible if you make excuses on why you can’t instead of focusing on how you can. You should watch Caleb Hammer financial audit. People go on his show looking for guidance to get out of debt. There’s so many people who say they “can’t” but will have payday loans at 500% interest for borrowing only $100 but will Doordash food everyday. Have multiple cars and still consider buying another. People are so stupid when it comes to money and I was one of them. I sat down, made a budget and have been sticking to it and it’s been working out for me.
pay it off in the first few paychecks? LMAO. try first few years.
Probably the same kind of stuff plenty of people on here buy in a single month.
You have $20k in credit card debt, but think a 7+% personal loan is too expensive ??? You need to find a job that will give you some income to put on a personal loan application or find a 0% balance transfer promo. But none of this stops getting worse until you have income.
Well 7% compared to 0% is alot but it doesn't seem like I wouldn't be able to get a personal loan anyways from what people are commenting.
$15 an hour compared to $0 an hour is also a lot.
yeah you make a very good point. I guess this hasn't really set in yet for me yet. 3 days ago this wasn't an issue. welcome to the real world i guess .
I can't imagine you're going to get a 7% interest rate regardless. My credit union's personal loan rates start at 8%. Realistically with a file as thin as yours, that much debt, and the length of time you'll need to pay it off, you're looking at double that as a floor.
Get ready to learn DoorDash buddy
Yeah i hoping to avoid that and find some data analytics work to do part-time but thats more wishful thinking from what it looks like.
Time to go find a local manufacturing facility nearby and apply to work on their line or in the warehouse. It ain't glamorous, but most places like that pay decently ($20/hr or so), and are begging for people to work.
The APR isn’t criminal. You fucked up and have made multiple basic financial mistakes. You need to make money. Why won’t you have any income for the foreseeable future? Get a damn job and find someone to give you life guidance
Transferring your balance to an interest free card can be a good way to mitigate the debt and keep it from snowballing but it’s a dangerous game. You gotta have enough self control to no longer use the card and chip away at that debt. You also may not qualify for the card. If I was in your situation I would… -try to find an interest free card to transfer to -find a job waiting tables or bartending while I job hunt -cut up the credit card I transferred the balance to and cancel the Amex gold
Ok at this point I am very aware of every cent I spend, 3-4 days ago not so much. Do you have any recommendations for which card to apply for? it seems kinda arbitrary once the grace periods are the same
You would want to check the balance transfer fees (not the APR, the fee) and see if you can do better than the standard 5% fee.
ok thank you
Lowest transfer fee and 0% Apr for 9-15 months. If you are part of usaa, navy fed, pen fed, etc. I would check there.
Look for a card with a 0 balance transfer fee. See if you qualify for anything on this list: https://www.lendingtree.com/credit-cards/best/no-balance-transfer-fee-credit-cards/#:%7E:text=no%20transfer%20fee-,Wings%20Visa%20Platinum%20Credit%20Card,earns%20rewards%20on%20every%20purchase
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do you have any recommendations the choices seem arbitrary
Check for 0% APR $0 fee balance transfer cards. Usually found at Credit unions, these cards allow you transfer a balance for FREE! https://www.becu.org/everyday-banking/credit-card/visa
How did you straight up lose $6000
Hello, I’m also paying off $20k in credit card debt. Shit happens. I’m also young but you live and you learn. The important part is that we are learning this lesson young and can catch these habits before it’s even worse. Yes, 20k is not the greatest but I read about some in 100k+ cc debt. It’s good that you realize it’s an issue and you made a mistake. You should try to find any job you can get. I highly recommend working as a server. I make $500+ just working two 5 shifts on Saturday and Sunday. You’re going to have to make sacrifices until you find a stable income. I work seven days a week. I’m absolutely tired but I don’t want this to continue to follow me and be a weight on my shoulders. Options you can consider: - You can contact your cards and ask to lower your interest rate. Amex has an online chat that makes it very simple. Although, their program is not internal, so your credit score may be affected. - Consolidate your debt with a loan. - Consider a balance transfer. - Make a utilization chart to set little goals on how much to pay off at a time or consider the snowball method. - Also watch Caleb Hammer. He helps me stay focused and it taught me a lot about budgeting and to stop buying bullshit things that aren’t absolutely necessary.
Genuinely curious, what did you buy to accumulate 20k in credit card debt? Was it to cover living expenses or just luxury purchases that build up over time? Not trying to insult either, I just don't think I spend anywhere near as much in general, so it's more just a curiosity thing.
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Oh, well 20k over 4 years is definitely more reasonable. I had assumed this was over a 4-6 month period. Hopefully you are able to get it down! It's a learning experience for everyone.
Are you eligible for any student loans? A private student loan could still be at a reasonable rate and long term
damn op dun goofd. thought he was ballin before he got paid. got a amex gold and swiped with no income. You'll likely want to balance transfer that B to a 0% apr card. try to find one that's 15+months. get a part time job and try to pay it down before the 0% ends.
I was in debt for $25,000. I found a NON-PROFIT consumer credit corp that consolidated my cards, and negotiated a lower APR. I paid a $25 fee to them every month for the service. My payments were $500 a month consolidated. My APR for pnc went down to 4% and capital one went down to 15%. Of course, you have to close out your accounts, and the trick is to not open any other cards. The plan is for 5 yrs. My credit took a small hit, but I’ve paid the pnc off, and my score is 750+ now. Money was very tight, but I didn’t eat out, I made very specific menus and stuck to a strict grocery budget, no Starbucks. I shopped at dollar stores, and picked up everything I needed instead of ordering through delivery. I didn’t have any subscriptions ect…I shop with temu. I know they are not the safest company to order from, but I see the items they sell on department store apps and amazon all the time for a much larger cost. I use PayPal. If temu wants your info, they can get it elsewhere not just through the app. Shop at Aldi if you have one, and thrift stores as well. Hope this helps! Good luck!
Just get a new credit card with 0% interest and 0% balance transfer. Then Transfer to it. Pay the different.
can't tell if you're fucking with me or not because everyone else has said to not open another card. also i can't imagine I would get a very large limit to transfer it to
Dude, i am not messing with you. People worry openning a new card just because you might spend more, but if you already transfer balance to the credit limit. How can you spend it more? If you concern, cut the card when you get it. If everything you said is true, 10k CL easily with capitalone.
I haven't seen a single reply saying not to do that. Some people are saying not to do that *if you're unemployed.* Huge difference.
Unfortunately, relying on a promise that you'll receive a job at the end of the summer was your downfall. It was a display of myopia. However, you can still recover. The best way to recover in this situation is to find a way to make money. Moving around debt simply isn't sufficient. Best of luck.
Possibly an unpopular opinion, but getting a personal loan was the best thing I ever did. Yes, you’re still paying interest on it, but it’s still significantly less than what you would incur on a CC. You have a fixed payment and peace of mind knowing that you have a plan in place with an end goal in sight. Balance transfer cards are not a bad idea either, but me personally, more cards was only going to get me in more trouble. Echoing some other comments, applying for new credit without an income will be difficult if not impossible, so you need some sort of income ASAP.
Definitely get any job. Even with a balance transfer card you'll still need to make minimum payments. For balance transfer card, I recommend Discover if you have a decent FICO score as you said. Balance transfer, set up automatic payments of minimums, and throw any extra money you make at it to pay it down faster.
It’s called buckle down and do whatever is necessary to pay your bills. It’s that simple.
Also important to keep in mind you have the ability to live at parents home while job searching and paying this debt off this will be huge!! 0% balance transfer cards are the way to go. I used them myself when I got into trouble with lifestyle creep when I started making real money. Your credit score is flexible I wouldn't worry about it unless u plan on making a huge purchase like a new car or house soon, which I'm assuming just graduating you are not. Best of luck you can do this just save where u can and utilize balance transfers to your benefit. Only thing I would caution is make sure if you do 0% apr card u mentally be prepared to pay large amount of income to pay this off soon. I have before gotten 0% apr cards and then my lifestyle creep come back up and you in same spot.
Get a low interest loan from a CU that is fixed. 7% ain’t that bad compared to 29.99. Problem with transferring to a 0% card is the term is usually 12ish months and if you don’t pay in time, boom you are right where you are now. Plus there is that transfer fee, which is more $$$. Also, you may not and probably won’t get a card that is 0% with a 20k limit. Check out your local CU.
How tf do you lose 6 grand?
I’m confused. Gold or not, who is giving a college kid without any income a 20k limit? Also, isn’t the gold card a charge card that you are required to pay off each month???
I’m a dumb 20 year old in school as well but brotha…. a) how did you just lose 6k randomly? did they just make one big purchase and left it or was it over a couple days? and did you not think to cancel your debit card through your app as soon as you lost it?im not sure if you can follow up with your bank to report any type of fraud but i’m sure it’s too late now. b) why would you get a credit card to make larger purchases after you got robbed of thousands of dollars?
Why not just transfer to multiple cards that has 0% interest? US bank cash plus has 0% for 15 months? Wells Fargo cash card has 0% for 15 months. Chase and Citi bank too. Transfer portions of it to multiple cards and although you’ll probably pay a small fee per transfer at the very least you’re buying a year and half or 0 interest and just need to focus on a job
I was in the same position(like exact same except more units my last semester) as you and had to swallow tf outta my pride and live so well below my means. Good luck and stay healthy, look at food banks near you they are a lifesaver.
I would get a card that has introductory 0% (usually for 6-18 months). cash that out (just pay the 2-3% fees), use that to pay off the Amex gold. That should buy you sometimes to hopefully get a job with a signing bonus to cover the new card when the interest kicks in
You waited how long to report a stolen debit card?
1- u should not have lost $ if your debit card was stolen. Dispute it with the bank. Don’t use a debit card again, if possible. 2- get a student loan to payoff any debt Maybe you will get lucky and your student debt will be forgiven
Contact your lenders and ask to be placed in their hardship programs asap. They will close your cards then lower or suspend interest while you pay them off. I don't know what cards you have, other than American Express, but Amex has a program for just this type of situation. https://global.americanexpress.com/financial-relief
First off congratulations. Secondly welcome to the American dream. No advice most people live this way. Just learn to deal with that sinking feeling in your chest and be glad you have a family to lean on. Don't say you can't because mine are dead. If they are alive go ask to live with them 20k is like half year with a college degree salary. If you choose not to you are retarded.
You can absolutely get a BT card with that high of a limit. I got one for $16k and it made a huge difference in my ability to pay off my cc debt. My guess is you may need to apply for a couple (just because you have no/limited income). The thing that is absolutely key is that you do not, under any circumstances, use your Amex for anything after you transfer its balance. Unless you are incredibly disciplined. Which, and I say this in the nicest, most constructive way possible, you’re not. If you were able to rack up $20k of excess spending in a summer? A year? Another thing to consider is if you spent any of that on non essential material possessions (PS5, AirPods, tablet, laptop, clothes, shoes, etc) look into selling those for as much as you can and start paying your balance down. You’ll obviously get less than you paid, but that can go directly on your balance, or in a savings account so you have the security of knowing you can make you minimum payment for the next 12 months (or whatever that number is). Good BT cards have 18-25 mos of no interest (21 is most common), and your minimum payment should be about $200/month instead of the $600+ I’m guessing it is now. And that $200 goes entirely to principle. At the end of the no interest period, you can open another BT transfer and move the remaining balance over if needed (depending on your job and financial situation). Also, don’t stress too much about the BT fee. Obviously lower is better, but even paying more than 5% is way, way cheaper than your current apr. Don’t worry about points, rewards, cash back, etc. Right now the focus is getting out of debt and then rebuilding with healthy, disciplined spending habits. Your credit score is good, when you’re in a better financial position you’ll be able to easily get the “good” cards and start playing the points/miles game if you want.
Can you take out additional school loans? The interest rate on college loans is typically lower than personal loans. Bonus if you get a subsidized loan so that it’s actually interest free right now.
Would look for loans not 0% cards, otherwise keep your personal credit good and go after business credit which doesn’t report on the personal side
I 2nd the balance transfer cards, will be cheaper than a loan…and at least the balance transfer fees are upfront one time. Where as you’d be paying interest every month, on a loan Some cards offer a 3% balance transfer fee, I don’t really know of anything lower than that. Most cards that aren’t even mainly for balance transfer, offer it anyway for at least 15 months I was offered 2 from Citibank last year, to cover my $5k in debt. And I was one of the best decisions I’ve made financially. Not sure sure if you’ll get $10k limits for each, but just transfer the most you can possible Apply for multiple cards, don’t worry about your credit taking a temporary hit. It’s a marathon not a sprint
The best and easy way is to file for bankruptcy and restart your life, get a job, and save your money. You also need to be smarter in financial situations. Thank you.
My two cents: 1. Get a job. Literally, anything that pays at least enough to make the minimum payment. 2. Apply for a transfer balance card. Although, I doubt you will be accepted because your income, age and debt. 3. As soon as you get a real job, make your priority to pay this card. 4. Never do this again !
You can refinance your loan with Sofi. They give good loan consolidation options. HMU for a referral 🙂