Submitted by Kindly_Database2868 t3_zkysyi in personalfinance
Hi,
I am extremely embarrassed to write this. I am in a very very tough financial spot right now. I have about $34,381.67 in credit card debt spread across 9 cards, 2 of them have been closed by the creditors. I have listed all cards with balances + monthly payments below. I have considered consolidations, bankruptcy, a debt management plan (which if I enrolled my payment to ACCC would be around $700/mo). All of this debt was caused by a reckless spending habit and mental illness that I have now gotten under control. I haven't used any of these cards within the last month.
I work 40 hours a week, making $15.46/hourly. After taxes/insurance/etc. my take home is approximately $430-$440ish. I pay $1040 a month in rent which I pay to my landlord weekly so I give him $260 a week. No, I cannot find anything cheaper, I have tried, and it's the best I can get. I went through all of my subscriptions (which are cancelled effective January, so as of January none of them will be deducted) but I was paying $160/mo in streaming services and random subscriptions. They are now cancelled.
Card 1: $8,520.49 - closed by discover / currently enrolled in payment plan @ 9.99 APR with $128/mo payments
Card 2: $3,924.04 - closed by discover / currently enrolled in payment plan @ 9.99 APR with $60/mo payment plan
Card 3: 1,969.59 / $61.00 monthly payment
Card 4: 6,897.55 / this card is enrolled with Tally so they make the monthly payments - I pay tally $60/mo
Card 5: 5,660.52 - I missed a payment, my monthly payment is now at $929.52 - will be using my christmas bonus to make that payment this week
Card 6: $2,054.16 / minimum is $20
Card 7: $1,567 / minimum is $115
Card 8: $750.25 / $28 minimum
Card 9: $3,037.55 / $102 due monthly
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As you can tell, the monthly payments greatly exceed what I have left over in a month. My credit is around 540 which is the lowest it's ever been - I used to have zero debt and a 760 credit score but 4 years later this is everything I have racked up. I have looked into loans and clearly cannot get approved for anything. I have $150 in a savings account. I am trying to get a new, better paying job or considering getting a second job. In the meantime, can someone please explain what the best option I have right now - other than increasing my income (which I am doing my best to try to do). Realistically, I would like this to be paid off in 2-3 years but it feels and sounds impossible.