Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Credit Cards
Profile Image

Question By
Jaspercat444

0 Contributions
0 People Helped
I am in severe credit card debt. What do I do? It is stressing me out!
I need to get as much of a 30K debt paid off in a year - how in the heck can I possibly do this when the CC companies will not lower my interest rate and I am just done I don't know what to do!

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
28 Contributions
54 People Helped
Most Helpful Response

Budgeting is Key

Helpful to 1 out of 1 people

Odds are there is money you are spending on things you don't absolutely need.

Go through your bank statements and identify all your monthly reoccuring expenses, write them down, also note how much they are, and when they are due.

Now create a budget, when you get income make sure every dollar has an assigned job (food, rent, internet, cell phone, student loan etc).

Next Identify what you are spending your money on, $4 Latte's seem cheap until you realize you are getting them 22 days a month, $88 is HUGE at this stage in the game. Cable TV is cheap entertainment, but not as cheap as netflix, hulu, and the library, $150 cable bill just wont fly when you want to get out of debt. Get crazy eat beans and rice, if you cannot pay your car off in the next 2 years sell it, public transporation is cheaper than a $400 car payment and $100 insurance.

Sell stuff, Sell everything but the dog and kids.

I would recommend you check out the videos (and the demo) for YNAB (stands for You Need a Budget). Additionally I would recommend you go to the Library and checkout "The Total Money Makeover" by Dave Ramsey, His methodology works great and I can honestly say it is working for me!

When you pay down debt aggressively and with intent and conviction interest rate does not matter (it really doesnt). Odds are what you have is not a Math problem (though it might look like one), you have a Behavior problem, a budget and a written plan will help you overcome this.

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.