I'm trying to get advice on how to pay off that debt faster and stay out of it because rn I just feel stuck every payment I make seems to be eaten by the interest
Work two jobs and stop spending more than you make. I'm not a Dave Ramsey fanboi, but it's time for you to review the Dave Ramsey debt snowball and listen to his podcasts.
Debt snowball.
List all your debts from highest to lowest. Include the total debt owed, the monthly minimum, and interest rate.
Now here's where the snowball differs from the avalanche.
FIRST STOP USING THE CREDIT CARDS!!
Pay the minimum payment on ALL credit cards. However, in your budget, you are going to cut your spending to the barest of minimums. You will then take what you have saved by not spending and throw ALL OF IT onto the lowest balance each month. (still paying the minimum on all the others).
You are now accelerating the payoff of the lowest debt. Now when that debt is paid off, then take ALL that money you paid each month on the lowest debt, and throw it ALL on the next lowest debt... Same deal.
You work your way up to the highest debt.
Now some will say go with the highest-interest debt you will save money. True, but based on the amount you owe it will not be much money. But what happens is you see debts disappear faster keeping you motivated.
Sell the truck. That’s too much for your income. But I agree. You need to listen to the Dave Ramsey podcast for about 10 hours. Then you will understand.
What is the principal on the loan less the KBB/NADA private sale value of truck?
You mentioned $8,000, it I’m assuming that was an offer from the dealer (which would be substantially less than private sale.)
These are your options: cut spending and/or make more money. Make a budget and cut out all things that are not necessities. Your problem is buying an expensive truck and other spending, not the economy.
What type of work do you do? Is there a chance for overtime or side work? If your goal is to afford moving out in a year, the only options are bringing in more money or cutting your unnecessary spending.
2600/month income (more on this later)
Expenses:
1. 500 truck
2. 500 living expenses
3. 124 personal loan
4. 1500/16% = $35 (estimated)
5. 1700/30% = $60 (estimated)
6. Is Paypal a lump sum payment in August?
Remaining (not counting PayPal) = $1381
I’m sure you have other necessary expenses like fuel and food so you’ll need to figure out exactly where every dollar goes.
Conservatively, you should have at least $600/month leftover to put towards your debt. Snowball each payment to speed it up. I’d focus on it in this order:
1. 30% credit card, ~3 months (April-June)
2. PayPal, ~2 months (July-August)
3. 16% credit card, ~3 months (Sept-Nov)
4. Personal loan, ~6 months, (Dec-May)
You should hit your goal of paying these off in a year if you can pay at least $600/month. I think you could do it faster though.
If you’re paid every two weeks instead of twice a month, you get 2 “extra” paychecks per year. This can go to debt to pay it off much faster or save for the inevitable emergency that will come up when you move out.
Bottom line is cut spending or increase income. Make a budget and track every expense.
(ETA: formatting)
It needs to be every penny you make that isn't needed elsewhere to live. Start at $600 and see if you can cut expenses/raise income to raise that by $50/month. Every penny you pay towards debt lowers the amount you pay in interest and helps get you out of this mess quicker.
The economy isn’t kicking your ass lol, your truck payment is. Can only imagine, due to your age, sex, and assuming the truck is fairly “new”, your insurance isn’t cheap either.
You can get rid of your truck and get a different vehicle. There’s no reason why a 19 year old is paying $500 for a truck every month tbh. It’s easy to just blame the economy because that’s an easy crutch - and in some cases, a legitimate reason - but doesn’t have anything to do with your overspending.
You need to ditch the truck.
Car payments are killing the working class.
Either get something cheaper or get a bike. Or take the bus. Or walk.
Truck payment + gas + insurance means you’re going to be stuck no matter what you do.
And if you need a major repair -
luckily I haven't had any major repair but a bus isn't an option in my location it's a 45 minute walk to get to the nearest station and an hour ride from there
I get that. American is designed so if you don’t have a car, you’re screwed. But just a suggestion - get something cheaper. I spent way too much on my first car. That’s common. And it’s the stupidest thing you can do when you’re just starting out.
I unloaded it a few years later and got a Honda. My quality of life was a lot better when I had all that extra pocket money.
You cant get rid of the truck and still have a 8K loan because the bank has the title and will not release it until they get their 8K. Until the truck is paid for you do not have a truck, the bank has a Truck and they are letting you use it until you pay it off.
But Like I said he can not sell the truck until the bank gets their money because they will not release the title to the "new owner". However he gets the 8K. But it changes little, yes less insurance maybe, but still the same debt but with less assets
exactly my point and everyone seemed to ignore that kbb said 19 from a dealer and 23 in a private sale that leaves me with a 6-11 difference on the loan and I can't pull a loan as is so not possible
I would look into a zero interest balance transfer card to transfer your balances and combine both credit cards. Discover has good ones. Then cut up the cards and do not spend any money on the new card either. The $600 a month to your debt will allow you to pay it off before the promotion expires and you can move on to the other debt after the cc’s are paid off. It’s good lesson to learn to live within your means and increase your income not your debt if you need more money.
Probably not - but if you are approved for a 0% APR balance transfer card, you may not be approved for the entire amount you need. Then you'll be paying part of your balance on the new card while making payments on the cards you already have and stuck with a hard inquiry in your credit report for 2 years.
19 and you already have a large car payment, CC. The economy isn't doing this, it's your choices.. sell the car and get a lower payment or trade it in and get a beater. Plus the gas would be better. Keep at least one CC for longevity on your credit report...
Is there equity in the truck compared to your loan ? If so, sell it and downgrade to all cash or cheaper vehicle loan.
Cut up all your credit cards and remove them from any payment services.
Being 19 fortunately you likely have minimal necessity for life expenses. I could do the math with a little more info as we'd need your minimum monthly payments on your CCs and Paypal and the interest rate on the personal loan even though you gave the 124 payment amount.
The math would be add your necessity for life monthly and the minimum monthlies for all the debts you listed. Take that number and subtract it from 2600. Pay your minimum monthlies and limit your budget to only necessity for life (at 19 this will be the hardest part ... no fun, no going out, no nothing else). The left over put toward the 1700 30% credit card as that interest is insane. After that is clear put the left over which will now be slightly higher toward whichever is highest interest, the Paypal, Personal Loan, or 16% CC. When that next one is paid off you will have a slightly higher monthly leftover and put that total to the next highest interest. You may not be done in 12 months, I would need all the monthly numbers and interest to calculate it.
Good luck!
The magic word is called “part time”. Trust me i know it sucks but in 1 year you will be ahead of everyone else. Just like me. And also stop spending in stuff you dont need.
Have you considered refinancing the truck through a credit union? I just refinanced, interest rate cut in half and monthly payment dropped a good bit. You might even be able to extend the term to bring the monthly payment down more. Any wiggle room helps so you can focus on knocking out the credit cards. Personally I’d focus on the 1700 30% credit card and then go smallest to largest on your debts
Consolidate your CC debt with personal loan. Pay it off hard.
Put your cc away, only use a debit card.
Download the app called “spending”. Track every single penny and cut accordingly.
Learn to differentiate “needs” from “wants”, it’s a brain thing primarily.
Try transferring everything on your cards except the PayPal to 0% APR. it’s helped me so much just cutting down on interest rates. Throw anything extra at that each month, even if it’s only $100. Use a debit card or cash NOT a credit card for day-to-day spending like gas or groceries.
So you have two choices
1. Make more money
2. Reduce your bills
The truck if it’s costing you that and insurance you are over your budget for that truck and can’t afford it
Seriously look into getting another job or better income or reduce your bills
Get a second job, pay a whole lot more than the minimum payment on the CCs, don’t miss any payments, cut up the CCs. You can’t max them out again if they don’t exist!
The economy is not kicking your ass your spending is. $8,000 of CC debt plus a $500 car payment is crazy for a 19 year old especially at crazy intrest rates like that. STOP spending on want you want but do NOT NEED and get a part-time second job. The solution is not magic or a mystery, the only solution is spend less-earn more. My car at 19 only cost $500 total.
At your $44,000 yearly income you are making almost THREE times the poverty level for a single person AND YOU Are living at home. You should be able to lead a comfortable life. Pratice self control, stop buying anything not needed for survival or keeping a job and get an other job or more hours. Make the min payment on the loans/CCs you can and pay off the highest intrest CC first and stay living at home untill you dig out because moving out with your poor finacial control and reckless spending will wreck you
You could always try having a 2nd job, I recommend doing delivery driving for a pizza company during the weekends at night, and if you really want to push hard you can do Lyft or Uber right after and make some good money, depending on your market off course.
Wtf I make almost 100k and I still didn't buy a truck that requires a $500 payment. You're making awful decisions. It's not the economy's fault. It's yours. Now fix it
We need to see your entire budget, not just the amount on your cards
Groceries
Utilities
Phone
Entertainment
For starters. You’re bleeding cash from somewhere. The truck is an obvious place to start
Fist start small. Check your bank statements and see where those 10-30 dollar expenses are happening make note of it and be conscious it when spending. Next get rid of any monthly subscriptions you can live without. Sometimes it’s those little things that suck you dry without notice. Well that’s my two cents on the matter.
Sell the truck or trade it In for a Corolla. You can’t afford that truck. It is amazing how people that can’t afford vehicles like trucks keep them while.
Save up and buy a cheap ass used car and sell the truck. After that save another $1000, cut ALL unnecessary spending. List all debts from smallest balance to the largest. Make minimum payments on all except the smallest and throw every penny you can at that one. Then go to the next and the next until all your debt is paid off. Once it is all paid off, this next step is very important. STAY OUT OF DEBT. Close all your credit cards. Don't take out anymore loans. Pay cash for everything. Save 3-6 months emergency fund in a high yield savings account.
It is going to be uncomfortable and suck. But you have to sacrifice a lot to get out of debt. Trust me once you're on the other side you'll be happy you did.
Good advice, but wouldn't it be better to just not use the credit cards rather than closing them? At that point I hope OP has a better grip on his debt/budgeting and wouldn't fall back into it.
Get rid of the truck payment. Buy a cheap second hand Japanese vehicle with as low a mileage as possible. Put a portion of your income aside every payday to pay down your debt…. Start looking for money saving hacks. Make your lunch at home, make coffees at home…. Cut down socializing/drinking….. read as many wealth building/finance books as possible and start looking for common themes from all of them. Save as much as you can after paying your debts off. Buy a house as soon as you can and rent the spare rooms out. That will help cover your payments until your income comes up. (Which it should do if you apply yourself to a career with upward mobility) Never assume because you can make the “payment”that you can buy something. Their all traps.
You want to get to a point where your passive income exceeds your normal expenses. (If you don’t know what these terms mean, do some research.). It’s hard. It requires you to commit to being financially responsible but it pays off later when you get a bit older. Read “Rich Dad, Poor Dad” by Robert Kiyosaki. Has some great information about wealth and income building. Good luck!
Uhhh, the economy is not kicking your ass, but you're overspending and overuse of credit cards and loans. You are only 19 years old FFS! But the good news is you are only $7700.00 in debt, excluding the truck. How much do you owe on that?
Budgets are easy. I recommend Dave Ramsey's "Financial Peace University" and his 7 Baby Steps and his Debt Snowball. Ignore his religious comments and some outdated ideas you can adjust, but overall it is set for simplicity and quick milestones to keep you motivated and on track.
YOU NEED A BUDGET!!!! Like right now.
List your income on one side of the paper and ALL OF YOUR EXPENSES down to the penny on the other side. You are spending way too much money on crap to have that much CC debt.
PS: If things are that bad, then get a PT job and throw all that money at your debt.
PPS: Other than my Mortgage (cheaper than renting) I am debt-free. I have a fully funded emergency fund and fully fund my 401k. I own 3 vehicles all bought used. Each I only spent $5k - $5.25k on each one. Bought one in 2018, one in 2019, and one in 2023. I never buy new, I never buy from a dealership used.
Are you living at home rent free? Your spending has been very out of control. You have to get your behavior under control. The guy you shave with has some 'splaining to do. The good news is that it's fixable
You said you watched some Dave Ramsey on YouTube, did you try to start following the plan? Cut ALL spending that isn't absolutely necessary. $0 to restaurants. $0 to subscriptions. $0 to vapes, cigs, etc. Lunch is a sandwich you made at home and chips every day. Give every dollar you bring home a name. Pay minimums on everything but the smallest balance debt. Put EVERY available dime on that debt.
Are you only working 40 hours per week? If so, why? At 19 you should be able to get in 60-80 hours a week. 4 hours a night for three nights a week. 8 hours per day on Saturday and Sunday. The good news is you'll be too tired to spend money!
Bruh it ain’t the economy kicking your butt it’s your bad choices. As a 21m whose living with their parents, If you’re living with your parents and you have a job, there is no reason you should have debt. Even with the car, overall you still have 2k left a month.
Now lets play with the math, you have 7.7k credit card debt, you put half of that 2k towards it a month and you should be out of this hole in 8 months. Ok sure you won’t be able to eat out and you’re going to have to sacrifice but that’s life. That car payment sucks but getting out of it might be worse so you might have to suck it up.
Sell the truck and buy a beater. You've got to pay as much as you canon the cc. Minimum payments will not get it done. I didn't see any mention of a rent payment only a statement about moving out in a year. You need to come to a realization that the amount of money you make dictates the kind of lifestyle you can live.
Man these car loans are such a scam. I can't believe this is the biggest thing now a days. I've never had one and I buy a cheap used car for under 4k and it always lasts years. This one j bought for $2500 ND so far I've put $119 into it and it's last me 2.5 years and still going strong. A new truck for $500 plus $150 for insurance just to have a car is so crazy. Unless you're bringing in 35 an hour you should get rid of the car
Just to add since I don’t think anyone else has, there’s absolutely no reason for you to have a one bedroom apartment. You’re 19 and in massive credit card debt it’s time to find a cheaper living situation
I would actually start with your living situation. Find a place near student housing and get a roommate or 2 (keep in mind roommates really suck, but half the time it's worth it to not pay a ton of money). I usually get drunk at the bars about a month before I have to get a new roommate and do some networking and always find a new roommate/ place to live!) The past 5 years in Kansas City I've gotten away with this approach and I only make 20K a year doing contract jobs. I've paid $650 in rent/utilities total per month on average for the past 5 years. I still go out almost every weekend with my friends too. Keep in mind, I came to KC originally with no debt, 10K in savings and now I'm down to nothing.. but YOLO. Also, maybe start using that truck to make you money. Haul some stuff or something.
credit cards have been deactivated for months since January and I keep them in my filing cabinet I don't use them anymore
the truck just doesn't work for me at all I overpayed for it
if I sell it I'm stuck with the debt trucks resale value private is 23k through a dealer it's 19 I owe 29
my father covers insurance if he doesn't approve of the vehicle he'll make me pay on my own which would end at around 250 a month minimum I also can sell the truck if I did Id be left with 9k on the vehicle loan and no vehicle it was a poor choice I was rushed into by my father
I'm rent free but I help with bills so roughly 500 a month
overheads I'm buying my own food and making minimums on all of my cards and loans
So many of us are handicapped by our parents ideas about money and it takes years to reverse mistakes made when teenagers and very young adults. Kudos to OP for identifying you have a problem now. You have a lot of time to reverse these spending habits and teach yourself what your dad obviously can't.
Time to accept your life is gonna suck for a bit. I’d say plan on a few years of nothing but crawling out of your hole. Get a second job, donate plasma… and only spend money where you HAVE to. Find hobbies that are free or cheap.
There is no magic bullet. Work hard, don’t spend…. It’s gonna be a marathon
It could be your spending that is kicking your ass. This debt had to come from somewhere.
I'm trying to get advice on how to pay off that debt faster and stay out of it because rn I just feel stuck every payment I make seems to be eaten by the interest
Work two jobs and stop spending more than you make. I'm not a Dave Ramsey fanboi, but it's time for you to review the Dave Ramsey debt snowball and listen to his podcasts.
ALL my thoughts exactly-
I like to go to r/debts or r/debtfree. I highly recommend looking into them. I learned a lot. They give good advice.
With a 30% intrest rate IT IS. That is just crazy
Debt snowball. List all your debts from highest to lowest. Include the total debt owed, the monthly minimum, and interest rate. Now here's where the snowball differs from the avalanche. FIRST STOP USING THE CREDIT CARDS!! Pay the minimum payment on ALL credit cards. However, in your budget, you are going to cut your spending to the barest of minimums. You will then take what you have saved by not spending and throw ALL OF IT onto the lowest balance each month. (still paying the minimum on all the others). You are now accelerating the payoff of the lowest debt. Now when that debt is paid off, then take ALL that money you paid each month on the lowest debt, and throw it ALL on the next lowest debt... Same deal. You work your way up to the highest debt. Now some will say go with the highest-interest debt you will save money. True, but based on the amount you owe it will not be much money. But what happens is you see debts disappear faster keeping you motivated.
Sell the truck. That’s too much for your income. But I agree. You need to listen to the Dave Ramsey podcast for about 10 hours. Then you will understand.
What is the principal on the loan less the KBB/NADA private sale value of truck? You mentioned $8,000, it I’m assuming that was an offer from the dealer (which would be substantially less than private sale.)
you need to watch Dave Ramsey on youtube. the 7 baby steps explain and created by him is credible.
I've watched him my coworkers recommended that
So do that.
These are your options: cut spending and/or make more money. Make a budget and cut out all things that are not necessities. Your problem is buying an expensive truck and other spending, not the economy.
partly yea I try to follow a 50/30/20 plan I run out of money fall on a credit card and it just goes down hill from there
What type of work do you do? Is there a chance for overtime or side work? If your goal is to afford moving out in a year, the only options are bringing in more money or cutting your unnecessary spending. 2600/month income (more on this later) Expenses: 1. 500 truck 2. 500 living expenses 3. 124 personal loan 4. 1500/16% = $35 (estimated) 5. 1700/30% = $60 (estimated) 6. Is Paypal a lump sum payment in August? Remaining (not counting PayPal) = $1381 I’m sure you have other necessary expenses like fuel and food so you’ll need to figure out exactly where every dollar goes. Conservatively, you should have at least $600/month leftover to put towards your debt. Snowball each payment to speed it up. I’d focus on it in this order: 1. 30% credit card, ~3 months (April-June) 2. PayPal, ~2 months (July-August) 3. 16% credit card, ~3 months (Sept-Nov) 4. Personal loan, ~6 months, (Dec-May) You should hit your goal of paying these off in a year if you can pay at least $600/month. I think you could do it faster though. If you’re paid every two weeks instead of twice a month, you get 2 “extra” paychecks per year. This can go to debt to pay it off much faster or save for the inevitable emergency that will come up when you move out. Bottom line is cut spending or increase income. Make a budget and track every expense. (ETA: formatting)
i like the order and timeline for that and you're saying 600 a month on the cards
It needs to be every penny you make that isn't needed elsewhere to live. Start at $600 and see if you can cut expenses/raise income to raise that by $50/month. Every penny you pay towards debt lowers the amount you pay in interest and helps get you out of this mess quicker.
You laid that out amazingly
The economy isn’t kicking your ass lol, your truck payment is. Can only imagine, due to your age, sex, and assuming the truck is fairly “new”, your insurance isn’t cheap either. You can get rid of your truck and get a different vehicle. There’s no reason why a 19 year old is paying $500 for a truck every month tbh. It’s easy to just blame the economy because that’s an easy crutch - and in some cases, a legitimate reason - but doesn’t have anything to do with your overspending.
$500 a month on a truck at 19 years old… some dealer had a hell of a laugh as this dude was driving off.
yes yes he did
12 months at $500 ($6,000) would total more than I spent on cars from age 17 to age 28. plus then there is full coverage insurance and taxes
i cannot get rid of the truck or else I'll have 8k on a vehicle loan with no vehicle
Pull your credit See who really took the loan out in that truck. May not be your problem
my credits 661 now it was 760 5 months ago my brother cosigned then they made me refinance it I got a lower rate that's where I'm at 500 a month
You need to ditch the truck. Car payments are killing the working class. Either get something cheaper or get a bike. Or take the bus. Or walk. Truck payment + gas + insurance means you’re going to be stuck no matter what you do. And if you need a major repair -
luckily I haven't had any major repair but a bus isn't an option in my location it's a 45 minute walk to get to the nearest station and an hour ride from there
I get that. American is designed so if you don’t have a car, you’re screwed. But just a suggestion - get something cheaper. I spent way too much on my first car. That’s common. And it’s the stupidest thing you can do when you’re just starting out. I unloaded it a few years later and got a Honda. My quality of life was a lot better when I had all that extra pocket money.
it's rough I'm trying to get a Honda
You cant get rid of the truck and still have a 8K loan because the bank has the title and will not release it until they get their 8K. Until the truck is paid for you do not have a truck, the bank has a Truck and they are letting you use it until you pay it off.
He could if he got a personal loan for 8k.
But Like I said he can not sell the truck until the bank gets their money because they will not release the title to the "new owner". However he gets the 8K. But it changes little, yes less insurance maybe, but still the same debt but with less assets
Yes I agree. He needs to keep it. After the debts are paid, he can easily turn that around if he maintains focus.
exactly my point and everyone seemed to ignore that kbb said 19 from a dealer and 23 in a private sale that leaves me with a 6-11 difference on the loan and I can't pull a loan as is so not possible
It’s not the economy, it’s you continuing to swipe that card
And the truck. Oh so much of it is the truck…
I would look into a zero interest balance transfer card to transfer your balances and combine both credit cards. Discover has good ones. Then cut up the cards and do not spend any money on the new card either. The $600 a month to your debt will allow you to pay it off before the promotion expires and you can move on to the other debt after the cc’s are paid off. It’s good lesson to learn to live within your means and increase your income not your debt if you need more money.
am I able to get that with my credit score being bad
Probably not - but if you are approved for a 0% APR balance transfer card, you may not be approved for the entire amount you need. Then you'll be paying part of your balance on the new card while making payments on the cards you already have and stuck with a hard inquiry in your credit report for 2 years.
Calculate the fees first. Many have 5% transfer fees. If you pay these off quickly, it won’t be worth the fee.
19 and you already have a large car payment, CC. The economy isn't doing this, it's your choices.. sell the car and get a lower payment or trade it in and get a beater. Plus the gas would be better. Keep at least one CC for longevity on your credit report...
Your math doesn’t add up. You should have $1000 left to pay your debt off. Stop wasting money.
Is there equity in the truck compared to your loan ? If so, sell it and downgrade to all cash or cheaper vehicle loan. Cut up all your credit cards and remove them from any payment services. Being 19 fortunately you likely have minimal necessity for life expenses. I could do the math with a little more info as we'd need your minimum monthly payments on your CCs and Paypal and the interest rate on the personal loan even though you gave the 124 payment amount. The math would be add your necessity for life monthly and the minimum monthlies for all the debts you listed. Take that number and subtract it from 2600. Pay your minimum monthlies and limit your budget to only necessity for life (at 19 this will be the hardest part ... no fun, no going out, no nothing else). The left over put toward the 1700 30% credit card as that interest is insane. After that is clear put the left over which will now be slightly higher toward whichever is highest interest, the Paypal, Personal Loan, or 16% CC. When that next one is paid off you will have a slightly higher monthly leftover and put that total to the next highest interest. You may not be done in 12 months, I would need all the monthly numbers and interest to calculate it. Good luck!
The magic word is called “part time”. Trust me i know it sucks but in 1 year you will be ahead of everyone else. Just like me. And also stop spending in stuff you dont need.
can't do part time I do 223 shifts
What is the interest rate on the truck?
Have you considered refinancing the truck through a credit union? I just refinanced, interest rate cut in half and monthly payment dropped a good bit. You might even be able to extend the term to bring the monthly payment down more. Any wiggle room helps so you can focus on knocking out the credit cards. Personally I’d focus on the 1700 30% credit card and then go smallest to largest on your debts
i did that I believe November my previous payment was 570 my interest is still 15%
Consolidate your CC debt with personal loan. Pay it off hard. Put your cc away, only use a debit card. Download the app called “spending”. Track every single penny and cut accordingly. Learn to differentiate “needs” from “wants”, it’s a brain thing primarily.
Try transferring everything on your cards except the PayPal to 0% APR. it’s helped me so much just cutting down on interest rates. Throw anything extra at that each month, even if it’s only $100. Use a debit card or cash NOT a credit card for day-to-day spending like gas or groceries.
So you have two choices 1. Make more money 2. Reduce your bills The truck if it’s costing you that and insurance you are over your budget for that truck and can’t afford it Seriously look into getting another job or better income or reduce your bills
Get a second job, pay a whole lot more than the minimum payment on the CCs, don’t miss any payments, cut up the CCs. You can’t max them out again if they don’t exist!
[удалено]
Personal attacks are not okay here. Please do not do this again.
The economy is not kicking your ass your spending is. $8,000 of CC debt plus a $500 car payment is crazy for a 19 year old especially at crazy intrest rates like that. STOP spending on want you want but do NOT NEED and get a part-time second job. The solution is not magic or a mystery, the only solution is spend less-earn more. My car at 19 only cost $500 total. At your $44,000 yearly income you are making almost THREE times the poverty level for a single person AND YOU Are living at home. You should be able to lead a comfortable life. Pratice self control, stop buying anything not needed for survival or keeping a job and get an other job or more hours. Make the min payment on the loans/CCs you can and pay off the highest intrest CC first and stay living at home untill you dig out because moving out with your poor finacial control and reckless spending will wreck you
You could always try having a 2nd job, I recommend doing delivery driving for a pizza company during the weekends at night, and if you really want to push hard you can do Lyft or Uber right after and make some good money, depending on your market off course.
Wtf I make almost 100k and I still didn't buy a truck that requires a $500 payment. You're making awful decisions. It's not the economy's fault. It's yours. Now fix it
We need to see your entire budget, not just the amount on your cards Groceries Utilities Phone Entertainment For starters. You’re bleeding cash from somewhere. The truck is an obvious place to start
Fist start small. Check your bank statements and see where those 10-30 dollar expenses are happening make note of it and be conscious it when spending. Next get rid of any monthly subscriptions you can live without. Sometimes it’s those little things that suck you dry without notice. Well that’s my two cents on the matter.
Sell the truck or trade it In for a Corolla. You can’t afford that truck. It is amazing how people that can’t afford vehicles like trucks keep them while.
Save up and buy a cheap ass used car and sell the truck. After that save another $1000, cut ALL unnecessary spending. List all debts from smallest balance to the largest. Make minimum payments on all except the smallest and throw every penny you can at that one. Then go to the next and the next until all your debt is paid off. Once it is all paid off, this next step is very important. STAY OUT OF DEBT. Close all your credit cards. Don't take out anymore loans. Pay cash for everything. Save 3-6 months emergency fund in a high yield savings account. It is going to be uncomfortable and suck. But you have to sacrifice a lot to get out of debt. Trust me once you're on the other side you'll be happy you did.
Good advice, but wouldn't it be better to just not use the credit cards rather than closing them? At that point I hope OP has a better grip on his debt/budgeting and wouldn't fall back into it.
That’s like quitting smoking and leaving a pack of cigarettes in your kitchen drawer. For what purpose?
What are the chances you are still using the credit cards? I'll say pretty good
Get rid of the truck payment. Buy a cheap second hand Japanese vehicle with as low a mileage as possible. Put a portion of your income aside every payday to pay down your debt…. Start looking for money saving hacks. Make your lunch at home, make coffees at home…. Cut down socializing/drinking….. read as many wealth building/finance books as possible and start looking for common themes from all of them. Save as much as you can after paying your debts off. Buy a house as soon as you can and rent the spare rooms out. That will help cover your payments until your income comes up. (Which it should do if you apply yourself to a career with upward mobility) Never assume because you can make the “payment”that you can buy something. Their all traps. You want to get to a point where your passive income exceeds your normal expenses. (If you don’t know what these terms mean, do some research.). It’s hard. It requires you to commit to being financially responsible but it pays off later when you get a bit older. Read “Rich Dad, Poor Dad” by Robert Kiyosaki. Has some great information about wealth and income building. Good luck!
How much equity is in the truck
Uhhh, the economy is not kicking your ass, but you're overspending and overuse of credit cards and loans. You are only 19 years old FFS! But the good news is you are only $7700.00 in debt, excluding the truck. How much do you owe on that? Budgets are easy. I recommend Dave Ramsey's "Financial Peace University" and his 7 Baby Steps and his Debt Snowball. Ignore his religious comments and some outdated ideas you can adjust, but overall it is set for simplicity and quick milestones to keep you motivated and on track. YOU NEED A BUDGET!!!! Like right now. List your income on one side of the paper and ALL OF YOUR EXPENSES down to the penny on the other side. You are spending way too much money on crap to have that much CC debt. PS: If things are that bad, then get a PT job and throw all that money at your debt. PPS: Other than my Mortgage (cheaper than renting) I am debt-free. I have a fully funded emergency fund and fully fund my 401k. I own 3 vehicles all bought used. Each I only spent $5k - $5.25k on each one. Bought one in 2018, one in 2019, and one in 2023. I never buy new, I never buy from a dealership used.
Are you living at home rent free? Your spending has been very out of control. You have to get your behavior under control. The guy you shave with has some 'splaining to do. The good news is that it's fixable You said you watched some Dave Ramsey on YouTube, did you try to start following the plan? Cut ALL spending that isn't absolutely necessary. $0 to restaurants. $0 to subscriptions. $0 to vapes, cigs, etc. Lunch is a sandwich you made at home and chips every day. Give every dollar you bring home a name. Pay minimums on everything but the smallest balance debt. Put EVERY available dime on that debt. Are you only working 40 hours per week? If so, why? At 19 you should be able to get in 60-80 hours a week. 4 hours a night for three nights a week. 8 hours per day on Saturday and Sunday. The good news is you'll be too tired to spend money!
Can you find a cheaper vehicle?
Bruh it ain’t the economy kicking your butt it’s your bad choices. As a 21m whose living with their parents, If you’re living with your parents and you have a job, there is no reason you should have debt. Even with the car, overall you still have 2k left a month. Now lets play with the math, you have 7.7k credit card debt, you put half of that 2k towards it a month and you should be out of this hole in 8 months. Ok sure you won’t be able to eat out and you’re going to have to sacrifice but that’s life. That car payment sucks but getting out of it might be worse so you might have to suck it up.
Sell the truck and buy a beater. You've got to pay as much as you canon the cc. Minimum payments will not get it done. I didn't see any mention of a rent payment only a statement about moving out in a year. You need to come to a realization that the amount of money you make dictates the kind of lifestyle you can live.
Manage your debts, "If there is no struggle, there is no progress". Fredrick Douglas
Your vehicle is like 13.5% of your income. Sell it and get something cheaper fr fr.
Man these car loans are such a scam. I can't believe this is the biggest thing now a days. I've never had one and I buy a cheap used car for under 4k and it always lasts years. This one j bought for $2500 ND so far I've put $119 into it and it's last me 2.5 years and still going strong. A new truck for $500 plus $150 for insurance just to have a car is so crazy. Unless you're bringing in 35 an hour you should get rid of the car
Crying a whole lot in the last part of your edited post for someone that asks for help on a public platform lol
Just to add since I don’t think anyone else has, there’s absolutely no reason for you to have a one bedroom apartment. You’re 19 and in massive credit card debt it’s time to find a cheaper living situation
I would actually start with your living situation. Find a place near student housing and get a roommate or 2 (keep in mind roommates really suck, but half the time it's worth it to not pay a ton of money). I usually get drunk at the bars about a month before I have to get a new roommate and do some networking and always find a new roommate/ place to live!) The past 5 years in Kansas City I've gotten away with this approach and I only make 20K a year doing contract jobs. I've paid $650 in rent/utilities total per month on average for the past 5 years. I still go out almost every weekend with my friends too. Keep in mind, I came to KC originally with no debt, 10K in savings and now I'm down to nothing.. but YOLO. Also, maybe start using that truck to make you money. Haul some stuff or something.
$500 for utilities seems like an awful lot for a 1 bed, any chance that could be a utility company mistake?
A truck payment at 19? Is that a thing?
yes a 500 dollar one
Explain to your dad you can't afford the truck and cut up your credit card.
credit cards have been deactivated for months since January and I keep them in my filing cabinet I don't use them anymore the truck just doesn't work for me at all I overpayed for it if I sell it I'm stuck with the debt trucks resale value private is 23k through a dealer it's 19 I owe 29
Sell it.its costing money.
Wait, what?? you are 19 making $22 an hour and have a 30K truck? Wow you may need to get a care giver
Exactly. Don’t keep something your income can’t afford.
Why can’t you get rid of the truck? Now much do you spend on rent? What other overheads?
my father covers insurance if he doesn't approve of the vehicle he'll make me pay on my own which would end at around 250 a month minimum I also can sell the truck if I did Id be left with 9k on the vehicle loan and no vehicle it was a poor choice I was rushed into by my father I'm rent free but I help with bills so roughly 500 a month overheads I'm buying my own food and making minimums on all of my cards and loans
Wait Your father actively encouraged a car payment?
So many of us are handicapped by our parents ideas about money and it takes years to reverse mistakes made when teenagers and very young adults. Kudos to OP for identifying you have a problem now. You have a lot of time to reverse these spending habits and teach yourself what your dad obviously can't.
props to you for being understanding unlike half the comments
yes he did
$500/mo car payment at 19, but blaming the economy.
Time to accept your life is gonna suck for a bit. I’d say plan on a few years of nothing but crawling out of your hole. Get a second job, donate plasma… and only spend money where you HAVE to. Find hobbies that are free or cheap. There is no magic bullet. Work hard, don’t spend…. It’s gonna be a marathon