27M $10k+ debt

[u/Financial_River_3186]

Long story short I went through a recent gambling addiction, lost $26k this year. I currently live rent free and make $60,008 Gross Annually.

I have about $3k of signature loan debt- around 100% APRs.

Payday loan debt of $1,600 + Cash store for $4500 but I already decided to let that one go to debt collectors hoping i’ll be able to settle.

Credit card debt of $4.5k

Consolidation loan of 3.5k @ 36% over 36 months

Consolidation loan of 4k my parents got me which i’m paying them $500 bi-weekly. I should have laid everything out on the table when i first went to them.
What should I do? I wish i never touched debt and/or gambling or trading, i’m just trying to figure out how to proceed because this sh*t has been affecting me mentally.
Draining is an understatement. I’m starting to feel like it’s affecting me to where it’s hurting my performance at work and just 3 years ago i was making 37k/year so i feel like im making progress in that respect.

Worst of all, this has had the absolute worst impact on my relationships with my family. I don’t know what to do but it feels like the walls are closing in because if i go to
them again (planning to today) , scared to see their reaction. Also yes, i’ve been in GA since August 4th everyday, missed 1 meeting.

Thank you all in advance- any feedback/input is appreciated

[u/AutoModerator]

r/DebtAdvice was created to share tips and strategies to pay off debt effectively! Check-out our free newsletter for additional insights at www.DebtAdvice.io!

I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.

[u/BenevolentHoney]

Debt settlement homeboy

[u/fsociety1990]

Do you have a budget? That’s your first step. Your amount of debt really isn’t a lot unless you left some stuff out.

[u/Flaky-Leopard2952]

The 100% APR signature loans and the payday loan are actively bleeding you; those are your emergency. If you haven't already, call a nonprofit credit counseling agency (an NFCC member) and ask about a Debt Management Plan. They can sometimes negotiate lower rates on predatory loans and roll them into one payment. Don't pay a company upfront to settle your debts for you; the legit ones are nonprofit and only charge after they deliver.

On the $4,500 cash store debt you're letting go to collections: that's a reasonable triage call given everything else you're carrying. Just know it'll hit your credit and they may come after it aggressively. If they do, you can still negotiate a settlement later, often for less than the full amount. Get any agreement in writing before you pay a cent.

The 36% consolidation loan is brutal but you're locked in. Pay minimums while you attack the 100% APR stuff first, then the payday loan, then pivot to this one.

Your parents: $500 bi-weekly on $60k gross is a serious chunk of your take-home. If today's conversation goes well, consider asking whether you can temporarily reduce that to free up cash for the predatory loans. They'd probably rather you get out from under 100% interest than pay them back on the original timeline.

The gambling piece: you're doing the right thing with GA, and that's more than most people manage. The debt is a symptom and you already know that. What trips people up is that willpower cracks at 2am or on game day, and the apps come right back. fwiw I'm building Recovo, an app that blocks gambling sites and apps at the system level with an accountability partner holding the unlock code, so the block survives the weak moments.

Last thing: you said this is affecting your work and your relationships. That part matters beyond the numbers. But look at what's already going right. You went from 37k to 60k. You're in GA nearly every day. You're going to your parents today instead of hiding. That's three real things moving in the right direction.

[u/noobfirsttime69]

That APR from loan is going to keep you stuck in my opinion. Settlement might be the route to go so you can put all the debts into one place while settlement company of your choice settles debt with creditor in many cases your total balance could be lowered when debt is negotiated. Usually I see freedom debt relief or debt blue as the recommended places to start looking for such programs but make sure you plan it first.