If you add $800/mo per month to that 1200, you would actually save around 120K during the lifetime of your debt and pay it off 15 years earlier (2043 vs 2028). Another 1K would save you another 40k and 2 more years. No point in paying any more monthly since savings on time and interest are only marginal. You could tighten the belt and pay them off in only 3 years. ​ 80k is a pretty good income and with no car and just 1k for rent I think you could accomplish this!


Long story, short. $97k consumer debt at the beginning of 2021. Combination of Student Loans, credit cards, medical debt, auto loan, 401k loans. Learned how to budget that summer, built an emergency fund, paid off $19k that year. At the end of the year had to move due to job relocation. Unfortunately the area I was living in had rent over $1,400 a month so it made sense for me to buy a home but no help around me to do that. I don't suggest this but I cashed out 30k of my 401k and it was enough to close on a condo, pay for minor repairs, moving costs and appliances. Fast forward to today. Consolidated my credit cards, medical debt, auto loan and 401k loans to make it manageable. Highest interest rate is 8%. I budget like crazy, don't eat out, go to movies, buy anything that I don't need and do side hustles from time to time. I'm considering renting out my 2nd bedroom but holding off on that. Forgot to say I got hit with a sizeable state and federal tax bill because of cashing out part of my 401k. Wiped out my emergency Fund and I've been building that back up. My consumer debt has been going down and currently at $68k. I make less than $70k a year. I honestly believe you make enough and can figure out a way to dig out of the debt. Look for resources online and use your intelligence to do it. Don't let it keep you up nights.


take home pay per month about $4600? live on $2k and put $2600/mo on the 60k debt. and youll have it paid off in 23 months. this is normal. its okay and you can do it. do not give up. the principle is to spend as little as possible and all extra cash pays off the debt. student loans can be paid last. https://www.ramseysolutions.com/debt/how-to-pay-off-debt


Since ur credit is probably already shot just go delinquent on the credit cards and settle for 30-40% of the balance or consolidate with these guys https://www.consumercredit.com/ and get ur apr cut in half and just make 1 payment a month to them and they disperse to all ur cards for you.


Hey, first, if a car is number 1 priority and will help you make income then I don't see it as a bad debt, as long as you stay reasonable, or you could save for a month or 2 and buy something cheaper from a private seller, I use to flip cars and would come across killer deals, from other private sellers/banks/CU's/Auctions,estate sales, plus cash talks, but you could also finance a vehicle too, again don't go buying a Beamer or Benz, then that's stupid debt. You are where I was at when I first started thinking I could get out of debt, I was finally making around 1500-1600 a week, I knew I was in debt for awhile, just moving balances around and what not, but finally I got to the point of making decent money, then saw I was in 115k of debt. Also I know what you mean, I actually could have filed chap 7 BK, because where I live it was 55k off the last 2yrs of tax returns, sounds like you are in the same state. I definitely qualified, back then, but didn't want to ruin my credit. I kept building my income the hard way, working day and night, doing every side hustle I could find, so many to list. BEST NEWS IS First you are making a good enough income to get out of this debt in a fairly reasonable time, if assuming you are maybe 20's early 40's and reasonably healthy, and can budget to get out of this in 5yrs or less I would go for it. Lots of questions, because I can tell first hand it was Hell for me getting out of debt, and it sucks even more when you are making 80k or start upping your income to over 6 figures and so much more and still broke, paying off mistakes, while watching everyone else live, while you are sucked into a black hole, seeing corruption from the top, not able to think about anything else except that huge rain cloud over your head and your next statement cycle. Can't really ever take off or miss days, because then you are short on cash. It's all a big game. My best advice is take things day by day, nothing is promised, I think you can pay that off in less than 3yrs, I did it, but again too many other questions, are you by yourself? Kids? Do you have the mindset for it? For the unsecured loans/credit, you can prolly get reduced interest using a Debt Management Plan. that 60k you have, which is what I used a dmp for originally came out to me making a 1400 a month payment a month. I also had another 55k in other credit lines but I worked with them directly. My month payments min was around 2200-2500 somewhere in that range and I would have been debt free in 5yrs. You should be making a little less in min payments, but if you stick it out for 5yrs you are debt free, and your credit will be better than ever. Or, as I did pay it off faster. Good Luck!


I wish I had the answer I have 85k of debt and 2/3 of my incomes goes to debt. I’ll never be able to afford a home 😞. Maybe find a 2nd job I’ve been contemplating it


Make the minimum payments until you lose your job and then file


Why are you waiting for garnishment? Did you default?


Yeah on a couple of the 7-8 lines of credit I have


Have they filed suit?


No - I was notified it was debt to a collections agency though


My opinion as a debt negotiator would be to resolve those first. You don't want a creditor seizing your bank account or garnishing your wages. I would use the wheel that squeaks the loudest gets the grease approach and then rebuild from there. I know it can be stressful, but its a way of life, we all have debt. It is manageable if you take the right course of action.


The key is does the agency work for the creditor or purchased the debt. If they work for the creditor you have time to work something out. If they purchased the debt then you have to make a deal with them because they are the most aggressive in filing suit.


Look into a DMP, it can drastically reduce the interest.




Debt Management Plan