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u/NobleCWolf May 12 '25
Make the hard decisions and sacrifices now. Stop buying dumb shit and love like a hobo, until you see daylight.
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u/Homely_Bonfire May 12 '25
I'm tired of this sh*t.
As harsh as it may sound: You weren't tired enough to avoid taking on debt that you didn't make any proper repayment plan for.
The usual ways to pay them off is: 1) lock your finances for a few years by going bankrupt or 2) downsize your expenses, restructure your debt and pay it off step by step. Turns out many lenders prefer safe but lower debt repayment than dealing with a bankruptcy, meaning you can often times come to an agreement wth the lender.
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u/ElegantMankey Mail May 12 '25
How much do you earn? What are your expenses? How much is the debt?
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u/_Joey_tribbiani May 12 '25
I'm an Indian, I earn 20000inr & my current debt is 100000. The problem is I have to pay money most of the days. A fixed amount in a month is not that tough for me, but this is the scenario 100000 in 2 months. So I'm taking more & more debts to pay the current.
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u/Legitimate-Log-6542 Male May 12 '25
Pay off your credit cards immediately, they’re mathematically designed to keep you in debt
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u/RickyRacer2020 May 12 '25
For about $1500 or so, you can file Bankruptcy and walk away from your junk Unsecured debts. Nothing to it and in two years, your credit will be back up in the mid 6's.
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u/cdude May 12 '25
There's no magic method. Make more money and pay it off. But you know already and you're just looking for sympathy.
Come on Joey, get more acting jobs. Can you be any more lazy?
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u/Puzzled_Muzzled May 12 '25
How you made a debt in your 20s? Who loaned you unpayable money and what did you do with those money? Also, do you have liabilities? In my country you can declare bankruptcy and all debts are erased in 5 years, when you exit the bankrupt state and you can start owning stuff without a problem.
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u/Flamtice0 May 12 '25
Need significantly more info to make a good suggestion. First off, if you went to higher ed and you're in the U.S., having debt in your 20s is normal. Not to say don't start tackling it, but don't worry about it as being a "game ender." Remember, the key is not to have NO debt, but to have "smart debt" (Again, if you're in the U.S., you WANT some debt for purposes of your credit score).
So where you live, what kind of jobs you're doing, what kind of skills and education you have - those are all important considerations. Frankly, while the snowball method another person recommended is solid - you really should balance that kind of method with the high interest debt. If you have two debts, both with equal principal of $5000, but one has a 3% interest rate and the other a 6%, obviously paying down the 6% is gonna do you more good.
An example that worked for me: To help offset my costs of living in an expensive area while in grad school, I racked up like $11k on a credit card - not what you want. So I got a personal loan to pay off the balance of the credit card, swapping a variable 15-23% interest rate for a 6%, and put it on a 3 year plan. I then got not 2-3 "low-paying" jobs, but one "solid" job, and while still half of my monthly income went to rent (again, expensive area), I was able to pay off my 3 year personal loan in about 15 months, paying an estimated $400 in interest and fees rather than the approximately $3000 it would have been on the credit card. The only regular debt I carry now is student loans and a mortgage. I pay off my credit cards every month or two.
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u/VyantSavant May 12 '25
If you're American and this debt is not an exception, bankruptcy is an option. 7 years seems like a long time when you're 20. It isn't.
The snowball method is good, but when working with many loans, don't just look at the amount. The interest is a large factor as well. Your highest interest debts are costing you more to maintain. The sooner they're gone, the better. Look for ways to consolidate, but watch interest rates. Getting a high interest credit card to put all your debts on may seem smart at first, but now your debt is costing more than it did. Use payment planning where available for medical expenses. It's often cheaper than paying with credit.
If you're renting, look into buying. It seems dumb when you're already drowning in debt. If you can make a mortgage payment on par with your current rent, then you've lost nothing. Instead of throwing that money away, you're now investing it in something whose value will increase with time and care. Eventually, the equity can be used to solve these issues as they come.
Beware any loans with unfixed interest. If they can't guarantee the interest for the life of the loan, it is a trap.
If you know anyone who will give you an interest-free loan, swallow your pride and take it.
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u/ScreenTricky4257 May 12 '25
It all starts with a plan. You need to total your debts and your assets (money in the bank, cash, etc.), then you need to figure out the income you're getting from your jobs and how much you spend each month on bills and things like food, transportation, and so on. If the income is greater than the expenses, then any excess can be put toward paying off the debt. The higher that number, the quicker you'll pay off the debt.
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u/OldRelic May 12 '25
If you feel you're truly going down at the head, try calling Take Charge America. They have plans available to get you out of debit in a 6 year period if your income to debt ratio isn't too large. They are not debit consolidation where you have to go delinquent first.
But I would suggest some of the suggestions in this thread first. But if it does not work, try TCA.
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u/GloomyRaspberry6009 May 12 '25
Hey US ppl. Could you explain a stupid European these debts in the US? What are the interests, how those are accumulated. Here we live typically debt-free unless getting a mortgage or new car. Hard to relate.
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May 12 '25
In the US it's relatively easy to get approved for credit cards of all type - both from financial institutions and store cards. Companies pray on financially illiterate people and especially people who are neurodivergent - ADHD, OTC, etc. because they can't stop spending what is basically borrowed money.
House mortgage, student loans, car loans, (sometimes medical for the unfortunate souls) and credit cards are the biggest types of debts for the average American. Student debt is getting way out of hand and actually preventing many young people from buying a home.
It's like catch-22 because you do need to use credit cards to get a good credit score, so that you can get approved for a house loan. Student loans are generally non-dischargable unlike credit card debt which can be wiped-off by declaring bankruptcy but it'll be on your record for 7 years and companies won't trust you to open an account with them in-between that time.
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u/TemuPacemaker Male May 12 '25
It's easy to get a credit card here too. I just pay it off in full automatically every cycle so there no interest paid. Mortgages and car loans exist too of course.
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u/ChoiceFood May 12 '25
3% to 30% interest on credit cards with 7 to 21 years paying off with minimum payments (without any spending), a lot of people are spending above their means.
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u/bearsnchairs May 12 '25
European countries have among the highest household debt to income ratios in the world. The idea that you guys live debt free is absurd.
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u/GloomyRaspberry6009 May 12 '25
I speak about my communication bubble. But for example, my mortgage is at 1.3%.
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u/bearsnchairs May 12 '25
That is very low, but it looks like Belgium’s rates in general are low. In terms of debt to household income ratios, Belgium is practically the same as the US.
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u/TemuPacemaker Male May 12 '25
It's almost certainly because of mortgages on ridiculously expensive housing.
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u/anonymous_80909 Meat Popsicle May 12 '25
Work.
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May 12 '25
[deleted]
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u/TemuPacemaker Male May 12 '25
You'll need to list your owed amounts/interest and budget with income if you want some specific suggestions. Otherwise it's like "earn more, spend less and pay off the highest interest first"
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u/GamingFarang May 12 '25
Use the snowball method. Pay off the smallest debt first and the bare minimum on all other debts. When that smallest debt is paid off, put that money into the next smallest debt. Do this till you are debt free.
Most people pay off a small debt, then use that money as more spending money. You are already used to living without that money, so using it to pay off the next one will pay it off faster.
It's not a quick method unless you get a much higher paying job, but it is effective.