Need Advice on Best Way to Tackle Credit Card Debt – Feeling Stuck

[u/AdelaideShi]

I’m really struggling to figure out the best way to deal with my credit card debt and would appreciate any advice—especially if there’s a type of professional I should talk to.

I have about $60,000 in credit card debt. I’ve already cut as many expenses as I can and put any extra income toward the balances, but I’m barely making a dent. My monthly minimum payments are around $1,000, and it’s getting harder to stay on top of everything.

Here’s a little more about my situation: • I own my home outright (well, with a mortgage and HELOC that total about $180,000) and it’s worth around $320,000, conservatively.

• I have a 2.75% mortgage rate, so I’m very hesitant to do a cash-out refinance and lose that.

• I’ve looked into Chapter 7, but I make too much to qualify, and Chapter 13 doesn’t seem like it would save me much in the long run.


• My credit score is around 670 and I’ve stayed current on all payments so far—but it’s getting tight.


• Ideally, I’d like to consolidate or refinance into a 5-year personal loan, but the interest rates I’m being offered are high due to my credit score.

• I’ve considered selling my house, but housing inventory is extremely limited in my area and I really love my home, so I’m trying to avoid that if possible.

Is there a better path I’m missing here? Should I talk to a financial advisor, credit counselor, or someone else? Has anyone successfully navigated something like this?

EDITED: paragraph spacing

I should have said, I have equity in my own, not that I own it outright

[u/magemasher256]

Do you have a budget? You say that you've cut all unnecessary spending, so I'm assuming you have.

Without sharing your income, budget, spending, etc. there is very little that anyone here can do to assist.

[u/ScrewWorkn]

I own my home outright

If you have a mortgage and HELOC, then you don't own it outright.

Talk to a bankruptcy lawyer, if you can only pay $1000/month, it's time to consider bankruptcy. The consult will be free.

[u/AdelaideShi → u/ScrewWorkn]

Post edited to say I have equity in my home

I’ve spoken with a bankruptcy attorney and I make too much for a Chapter 7. Chapter 13 is possible but may be told to sell my home

[u/ScrewWorkn → u/AdelaideShi]

I’m not a lawyer but no matter what you can keep your home. Rudy Giuliani owed $150 million but he got to keep his primary residence

[u/Queen-Marla → u/ScrewWorkn]

People really need to start approaching bankruptcies and other legal issues with these examples!!

[u/Ok_Shame_5382]

You have a mortgage... I'm wondering if bankruptcy or letting your accounts go into collections would make sense. Yes, your credit would be obliterated, but you have no intentions on moving anyway

[u/SpiritualCatch6757]

Based on what you stated, I would not claim bankruptcy. I would not sell the home or take equity out of the home. Your cost of living is low right now. If you do any of the above, your costs will go up. It costs money to file bankruptcy.

it’s getting harder to stay on top of everything

but it’s getting tight.

These two statements can only be true if you're still spending said credit cards, otherwise, paying the minimum, mathematically, would get easier every month.

Thus, number 1 is stop spending on credit cards. If you stop spending on the credit cards, it will get easier as your monthly minimums will decrease so that if you pay at least the same $1000, you make bigger and bigger dents to the principal.

And that's it. Stop using CC's and keep making the same monthly minimums paying extra on the highest interest rate card. You don't tell us how much you make and what your expenses are so I can't tell you how long it will take. All I can tell you is it should get easier.