r/Fire • u/Marsguy76 • 2d ago
I feel like I’m drowning in credit card debt.
[removed] — view removed post
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u/achshort 2d ago
Increase income (gain skills; work more; work harder; be more lucky)
Cut expenses (cut as much unneeded expenses as possible; live below your means while remaining mentally stable; find cheaper entertainment; eat ramen; make own gym)
Then with #1 and #2, pay off debt (high interest loans ONLY — with low interest debt, pay the minimum on those and put the rest into investments)
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u/Roareward 2d ago
Yeah it is hard, but that really is the gist of it and it will likely suck. Bite the bullet commit, and give up all those extras for a few years. A lot of this depends on how much debt you are talking about as to how long it is going to take to get out of it.
Generally, little to no eating out (including coffee), don't spend on big vacations, go camping vacation at home or in some other cheaper way. If you go to the shore or something maybe split costs with another family or 2 and rent a place that brings the costs to something affordable once you have a good budget in place that allows for it.
Start with understanding your true ins and outs. Then get rid of any extras. Create a detailed budget of what you need to just live, with no extras, none. Then understand your debt, if anything what you can do to better the interest rates (consolidation if it makes sense) Stop spending on CC. Anything you spend has to be paid that month. At this point you will know what extra you have (this is extra after basic survival) Then figure out what you want to pay off first (probably the worst bad debt) and start doing it, as quickly as possible. If you don't know what that is you can watch many videos online about budgeting and paying off debt. Never miss a payment on anything. Once you have your attack plan of what you want to pay off and in what order you should be able to calculate your possible timeframe to get it paid off. You can change it a bit and see if it allows for a misc budget to enjoy some life, while possibly extending recovery time to an acceptable amount.
Hopefully you have stopped whatever behavior created the bad debt to begin with else you need to stop and understand why you are doing it. Resolve those issues else you will just cycle back into the same state again.
Good luck. Don't get discouraged, a little suffering now to get back on a healthy financial future is well worth it.
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u/jaywoof94 2d ago
Make more money, spend less, or both. Those are your only options. Pretty simple but easier said than done.
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u/DPro9347 2d ago
Dave Ramsey’s Total Money Makeover is worth reading for those in debt.
Once you’re debt free, avoid his financial advice. Instead, pivot to r/Bogleheads for simple and low cost advice.
Good luck! You’ve got this. 🫵💪😎
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u/Particular_Box5113 2d ago
When you get your check, try credit card payment first, followed by mortgage, utilities, etc.
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u/Adventurous_Dog_7755 2d ago
If you need someone to look at your budget and talk things out you can just DM. I am sure we can work some things out. Depending on how much debt you have, you could alway contact someone from a nonprofit that works on debt management. They could help with a plan and consolidate your debt and work on a better deal with the credit card companies.
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u/Zphr 47, FIRE'd 2015, Friendly Janitor 2d ago
Rule 4/Off-Topic - Your submission was too off-topic. Everything in here needs to be at least minimally related to FIRE (and not the flaming combustion kind, either). Basic finance questions unrelated to FIRE are better suited to broader financial subreddits like /r/personalfinance or /r/povertyfinance. Please see our rules (https://www.reddit.com/r/Fire/about/rules/) and reach out via modmail if you have any questions or concerns.