How to get out of debt!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Normally the CC debt is the priority as, I assume, it’s at a much higher rate. But, you also can’t stop paying for car as you need it. Can you consolidate CC debt into a smaller loan? When you analyze your monthly spending, where can you cut? Do you go out to lunch each day? Coffee out? You’ll need to make spending cuts. You can do this!9

I am a nurse so get very tired to do another job and going to be very difficult once I start the school.

I don’t hv a lot of extra cash every month and barely breaking even and sometimes go into negative. This is becoming a huge task since my cc debt is almost 1x gross annual income.

How much do you make as an RN?

I'm an RN and have 3 casual positions on top of my FT positions. You can't afford school right now. Get another PRN position somewhere and knock out some debt. Get a roommate. Sell the car and take public transportation. And stop with the excuses. You created this mess, clean it up. And bankruptcy is terrible advice.

[Anonymous]

How much do you make as an RN?

[Anonymous]

Anonymous wrote:I have about $55K of credit card debt and $27K of auto loan. Overall, my minimum monthly payments are about $2700-2800 when my take home per month is about $4500 as a nurse making $60-65K/year. On top of debt, I still have to pay rent, utilities, groceries, gas, etc. I stay very depressed that I would never be able to get out of this. I want to go back to school to get advance nursing degree(paid by hospital) but have to adjust on my hours.

I am 42F and single.

You said your car loan is $700 a month so your minimum monthly payment on credit cards must be $2000, which means you APR must be 30-40%! Follow the advice of PP who reduced her APR to 10%. If you do that, you reduce your credit card interest payments from $18k a year to $6k and can put the $12k you saved towards paying off the credit card balance. You should be able to pay it off in 4 years. I wouldn’t bother with trading your car. You are not likely to reduce your car payment significantly since you got a very good rate of 7% somehow. I doubt you can get a good rate now given your credit situation. So even if you trade your car in for a cheaper one you will lose on the trade in, dealer fees, taxes, and most importantly interest rate and end up saving only maybe a couple hundreds in payments but also having a less reliable car. Not worth it. Focus on reducing card APR

[Anonymous]

Actually if you can reduce your credit card APR to 10% you can pay your debt off in 2.5 years

[Anonymous]

Can you pet sit or dog walk? Maybe not, due to your hours?
I also agree with the advice you’ve been given.

[Anonymous]

Why is it people aren't advising OP to file for bankruptcy?

It seems the best option here. She's 42, single, and is pretty low income for her age. Household income of $60,000 is below the median household income in Gettysburg PA which is $81,000.

She's in poor health and doesn't own a home, has very little in retirement savings (I presume).

She only has about 20 more years to provide for her future in retirement.

And her debt is more than she makes in a year.

This isn't the case of a two-income household making $120,000 total, being able to move to a bare-bones budget for 2 years and wipe out $60,000 in debt in two years, in order to keep the house.

It would very likely take her 4-5 years to wipe out this debt and she'd be cutting it very close to the bone. This is assuming she doesn't need to take off work or lose her job in the meantime.
In which case she WILL have to declare bankruptcy anyhow, because she won't be able to support herself on SSDI or unemployment insurance.

So why not do it now, proactively, in a way that will set her up for a better future?

The entire reason we have high credit card interest rates is because some people will declare bankruptcy. I would not feel any shame about defaulting on a credit card loan.

[Anonymous]

OP, I went back and gathered all your information from posts into one place.

I have about $55K of credit card debt and $27K of auto loan. Overall, my minimum monthly payments are about $2700-2800 when my take home per month is about $4500 as a nurse making $60-65K/year. On top of debt, I still have to pay rent, utilities, groceries, gas, etc. I stay very depressed that I would never be able to get out of this. I want to go back to school to get advance nursing degree(paid by hospital) but have to adjust on my hours.
I am 42F and single.
I am a nurse so get very tired to do another job and going to be very difficult once I start the school.
I don’t hv a lot of extra cash every month and barely breaking even and sometimes go into negative. This is becoming a huge task since my cc debt is almost 1x gross annual income.

Op here. I am an LPN and work as a nurse in the surgery center. Extra hours are available but it also gets very tiring.

I got some of this debt after my divorce and part of it is me spending a little too much but I hv learned my lesson. Car payment is about $700/mo and I hv some medical issues too that takes away some of the cash. Can’t get rid of car since I do hv to travel to see my family.

An extra day of work brings about $150 in hand but I also hv extra spending coming up and the interest rates are high. Everything is getting so expensive that I constantly hv to use my existing CC limits to cover them.

I have rent($950), utilities, insurance, groceries, medicine, other basic stuff, gas. It continues to get depressing. By going to school, I thought my income/hr could go up but hv to be in part time school for 18 months and I might do less hours as a nurse or constantly working and school.

I live in a small one bedroom apartment as I didn’t hv good experience with roommates before. Car still hv 4 more years left on the loan and it’s Camry hybrid so gas mileage is good. I don’t hav any streaming payments.

Op here. I had some old debt that were brought to me in divorce and then some spending habits and stuff for older kids when they are in college. I am in Gettysburg, PA area and happy with the hospital I am at. Have been working extra hours but it’s tiring. Going back to school is something I want to do for sure but have to work my b**t off to pay some of the debt. I can’t keep up and I don’t do any nails, hair etc either

Yes, I have some medical issues including type2 since I am overweight and that gets me very tired after such a long day at work. I was thinking about bankruptcy but it’s also scary. I am trying to get as many hours as possible but additional shifts are sometime inconsistent.

My debt is also from divorce, some medical issues, and expenses for kids. Except 1-2 expensive things that were gifted to me, I don’t hv anything that expensive to sell.

I had to get a better car because of my driving due to kids and the area I live in(Gettysburg,Pa). Family is spread out in that area and I need to see them from time to time. My car loan is at 7% apr and got me if the credit card debts reduced to lower apr of 7.99%.

I don’t invest a lot in 401k and max about $2500/year. I got a tax refund this year and used that towards paying down the debt.

Going back to school is I really want to do and it would increase my salary by 30-40% after 18 months of education but worried about the debt.

I am not arguing but thought about most of the things and I am confused. I have already started putting extra hours with working over the weekend and it’s not helping as much as I want to. I am not spending on anything frivolous and only on necessity.

My family is not well off and don’t hv enough space for me. I tried living with my mom and crashed on her sofa but it was getting very difficult and stressful so I had to move out and get an apartment and it’s the cheapest I could get.

I have 2 girls - 25(graduated from Pitt) and working at a small jewelry store as e-commerce manager, second is 21 and still in college. They are already tight with their money and I don’t expect any support from them and get them gifts during birthdays or holidays.

Reason of being depressed and super stressed is because I broke up with my fiance a few months ago and he was kind and very supportive and helped me out with loans too but we were arguing a lot and I ended up getting my own place.

Op here. Yes, I should hv bought a cheaper car but at that time I was driving a car and wanted something with better mileage and hv less maintenance issues.

I wasn’t on the same page with my fiance for a few things including finances. He was covering all the expenses and I moved in with him but on my own now.

Op here. I got a 2022 Camry hybrid XSE and the price of the car would be same as what I owe or may be a little less. I am working extra and picking up shifts as much as possible but it’s not making dent in my situation. I am a nurse at a surgery center and it gets very demanding standing on feet for 10-12 hrs. Not many excuses but telling so that others would understand my pain.

My credit score is about 680 and I have been making minimum payments on time. My situation when I was with my fiance was much better and I was making good progress with debt since he didn’t ask for anything but it has gone very tight at my own apartment. I am under one year lease and don’t have extra bedroom to get a roommate. It’s an older building in Gettysburg,PA and I am concerned about big heating bill during winters. I looked into trading cars but not making much sense since loan is going to be close to same after all the fees, taxes etc. I am looking into refinancing current auto loan and start 7 year loan so that payment could come down.

Yes, I do have 403(b) from the hospital but it’s not a lot so not cashing that out right now.

I am also negotiating with CC companies and trying to get a balance transfer to a new card for initial low APR.

Other than money, there were issues with my fiance and I think he got frustrated with me working and not having enough time for the relationship. He’s also 1.5 hrs away and stay with him was comfortable and he was supportive but got resentful that my debt is coming in the way of the relationship and threw it on my face a few times which was upsetting. I am very stressed now with everything I have to deal with along with rent at new place.

My car is Camry hybrid XSE. I am selling my stuff and not buying anything new. I am becoming a minimalist. I could hv done uber but there are not a lot of uber opportunities in my town. I don’t eat out and don’t spend money on nails, hair etc. my expenses sometimes are for my medications, co-pays, etc.

Ok, here is my expense list:

1.$2700/mo all debt payments including car loan
2. $950/mo rent
3. $200/mo utilities, internet, etc
4. $100/mo gas
5. $250/mo groceries
6. $200/mo - medical, co-pays etc
7. $100/mo - car insurance
8. $150/mo - household items such as shampoo, soap, etc.
9. Miscellaneous -$200/mo

My take home with overtime is about $4800-4900/mo.

Credit score is 675

Op here. For me, $200/mo for medical is low since I take ozempic, pcos medication, anti depressants, other vitamins, co-pays, regular lab work. I am very tight on groceries too and never eat out.

I am cutting down on my miscellaneous and household stuff but that’s minimum because I need to buy basic items, toiletries, etc.

Questions I have:

- who are the family you must visit in your car? Do you have any options to get there without a car?



1) What is the interest rate on your credit cards? Are all of them above 15%?

2) Have you applied for or been approved for any balance transfer cards yet?

3) Would your hospital offer tuition assistance while you work reduced hours?

4) Can any of your credit card debt be negotiated or settled for less than the full balance?

5) What is your relationship with your daughters? Do they need financial assistance from you? Is their father in the picture? Are your daughters able to help with small expenses or temporary support (even $50/month)? Will they need to move in with you at some point?

6) What is your exact remaining balance and payoff date on the car loan?

7) What year is your Camri Hybrid XSE?

8) Are there hospital roles (clerical, admin, telehealth) that are less physically demanding but pay similarly?

9) Would you qualify for income-based repayment if you have or ever take on federal student loans?

10) Could you explore local financial support groups or subsidized housing options in Gettysburg?

11) Who are the family members you need to be able to drive to visit in your car? Would it be disaster if you didn't have a car temporarily? Could you see them another way (public transport, Uber) for two years or so. (I'm thinking, lets's say you get an older car, might be less reliable?)

[Anonymous]

Some suggestions:

Medical expenses: Research manufacturer coupons or patient assistance programs for Ozempic and other meds.

If your hospital will pay, prioritize the program and start part-time while maintaining hours until debt is slightly reduced.

The income boost of 30–40% post-degree is one of your best long-term solutions.

Delay school start by 3–6 months if possible while you get on a structured debt reduction plan.

Seek out low-cost counseling or employee assistance programs (EAPs)—you’re under incredible pressure and deserve support.

Look into walking groups or free wellness apps to improve energy levels naturally alongside PCOS and T2D management.

Try remote nurse work (teletriage, chart review), tutoring CNA/LPN students, or occasional health fair gigs on weekends.

Ask your hospital about extra clerical tasks or cross-department help that pays similarly but isn’t physically demanding.

[Anonymous]

Op here.

Here is my response to questions above:

1. Interest rates on cards are close to 20% and one I was able to get reduce to 10%

2. Didn’t get approved for new balance transfer cards recently.

3. Yes, hospital is covering the tuition assistance and I’ll try to cover as much hours as possible while going to school which would be part time and 3 days/week in the evening.

4. No, I tried negotiating and they said No.

5. Excellent relationship with daughters. Their dad is in the picture but they have their own expenses and student loans and can’t help me.

6. Car loan is going to be paid in 4 more years but I am refinancing the auto loan for 6-7 more years and that should reduce the payment by $200/mo and I could use that to pay off the credit cards.

7. 2022 is Camry model and worth about $26-27k

8. There are very limited other roles at the hospital

9. I am not planning to take student loans

10. I’ll check on local groups but nothing yet

11. My mom is very sick and goes through dialysis so I visit her from time to time. See daughters when they are in town too.

Since I am diabetic, I get ozempic for $25/mo. I’ll try EAPs and other suggestions over here too.

[Anonymous]

6. Car loan is going to be paid in 4 more years but I am refinancing the auto loan for 6-7 more years and that should reduce the payment by $200/mo and I could use that to pay off the credit cards.

Best of luck to you OP, you sound like you're on the right path to getting out of this. I wish you the best.

But I'm not sure refinancing your car loan is a good idea. You're extending your loan period on a depreciating asset so you can lower the monthly payment? What if you end up underwater on your loan? Might want to rethink this one.

[Anonymous]

I would sell the Camri.

It's only 2 years old! I understand that you may be underwater on it, but the payments are killing you.

Here's my timeline for you:

Step 1: pay the MINIMUM only on your debt.

Step 2: save up every dollar you can towards paying cash for a car.

Step 3: Work extra hours and put that towards cash for a car.

Step 4: look online, ask friends, keep an eye out for a cheap BEATER car. Yes reliable but it can be grungy, beat up, whatever. You just need it to get to work and back.

Step 5: also look out for a reliable mechanic who can help you keep a beater car limping along for a year or two.

Step 6: when you have saved up $6000 or so, sell the Camry and buy a beater car for cash. Take it to a mechanic first to be sure it doesn't have any expensive repairs.

Step 7: now take that $700 you were spending + $100 in insurance and use it to find your emergency repair account.

Then I would declare bankruptcy for your credit card debt.

[Anonymous]

Anonymous wrote:I would sell the Camri.

It's only 2 years old! I understand that you may be underwater on it, but the payments are killing you.

Here's my timeline for you:

Step 1: pay the MINIMUM only on your debt.

Step 2: save up every dollar you can towards paying cash for a car.

Step 3: Work extra hours and put that towards cash for a car.

Step 4: look online, ask friends, keep an eye out for a cheap BEATER car. Yes reliable but it can be grungy, beat up, whatever. You just need it to get to work and back.

Step 5: also look out for a reliable mechanic who can help you keep a beater car limping along for a year or two.

Step 6: when you have saved up $6000 or so, sell the Camry and buy a beater car for cash. Take it to a mechanic first to be sure it doesn't have any expensive repairs.

Step 7: now take that $700 you were spending + $100 in insurance and use it to find your emergency repair account.

Then I would declare bankruptcy for your credit card debt.

Terrible advice. OP your plan makes a lot of sense, if you can lower your car payment and relocate the funds towards paying off your high interest credit cards that the fastest way to get out of debt.


You said you pay 20% on your credit cards? Are you sure? The min pay on credit cards is 1% of principal balance plus your rate of 20% divided by 12, so less than 3% combined, which is about $1600 for your balance of 55k. How come you actually pay $2000? Are you paying more than min?

Regardless, the next best thing for you to do is to lower the credit card interest rate. You might not be able to negotiate it directly with the credit card company but you should reach out to one of the non profits that help people like you to negotiate. One of the PPs even gave you the name of the non profit. Why are you ignoring this advice?

[Anonymous]

[quote=Anonymous}

Terrible advice. OP your plan makes a lot of sense, if you can lower your car payment and relocate the funds towards paying off your high interest credit cards that the fastest way to get out of debt.

A SEVEN YEAR car loan does not make sense for OP. Her car is too expensive for her income.

Sometimes the best way forward is to recognize that you are going the wrong direction.

Undo the mistake of buying a car you could not afford on your salary.

Sell the expensive car. Buy one for cash. Then declare bankruptcy. Your debts are too high for your income. Moreover, they are impeding your ability to get further schooling for, I hope, a BSN, which would increase your income greatly.

[Anonymous]

Anonymous wrote:Op here.

Here is my response to questions above:

1. Interest rates on cards are close to 20% and one I was able to get reduce to 10%

2. Didn’t get approved for new balance transfer cards recently.

Consider this: the banks are unwilling to approve a 0% transfer for you because they can see your financial situation. They NEED to charge high interest on you because they know there's a very good chance you will default on your loans. Your situation is no surprise to them at all; it is how they make their money. Some portion of the people they extend credit to by design will be unable to pay it back. They will just keep milking and milking you out of whatever they can get by charging higher and high interest.

[Anonymous]

Anonymous wrote:OP, please know that you are not alone. Lots of people find themselves in what feels like a hopeless financial situation. It does no good to beat yourself up over how it happened (except to acknowledge it and make the necessary changes going forward.

Without going into too much detail which I'm sure would be ripped to shreds by the perfect people of DCUM, I also accumulated a large amount of debt ($35,000). Check out Money Management International. It's a non profit debt management plan. I tried getting my creditors to lower my interest rate and even though I was a long time customer with good credit, they refused. I enrolled in MMI last year and it's been a great experience. The enrollment process was very easy. They work directly with your creditors to lower your interest and work out a payment plan. You make one lump sum to them each month (a $50 monthly fee is added into the payment). Within 10 days of my first payment, all my creditors had accepted the plan and my interest rates are all at 10% or lower. My monthly payment is $200 less than I was paying on just my minimum payments. My debt will be paid off in 4 years. Your credit will take a slight hit at the beginning, but this doesn't tank your credit like the debt plans that tell you to stop making payments and once you're delinquent they work out a deal. There were no missed payments at the start of the plan.

I highly recommend it. They take into consideration all of your expenses when putting together the payment plan, so be sure to list everything.

Additionally, cut back on whatever you can. Cancel streaming services. Clip coupons. Stop eating takeout. All the little things add up.

Good luck!

This. Ignore the people who are just going to judge. There but for the grace of God...

I used American Consumer Credit Counseling (https://www.consumercredit.com/) to do what PP did. They negotiated much lower interest rates with my creditors, and I send them one payment each month, plus $25 in service fees, and they handle the disbursement. If you're going to declare bankruptcy, you'll need to consult a credit counseling service anyway. might as well start there and see if it's enough help to get you back in the black.

Be careful to use a reputable agency. Check out the debtfree reddit and other reviews. There are some "credit counselors" who are basically a scam.

FWIW, my credit is back at 700 now and my bills are about halfway paid off. It closed the accounts, which meant I had no choice but to learn how to spend within my means. Totally worth it, IMO.

Best of luck to you, OP. Debt is stupid stressful, no matter how you got there. You can get out. Just take it one good decision at a time.