Hello, I have 24,000 in credit card debt. How do i get rid of it! Below is a summary of my financial situation:?

I have had 24k in debt for a few years now and the high interest rate charges and life disability charges theh throw at me each month leaves me only paying the minimum balance each time.

I am 24.

I am a USMC Veteran.

I am married and have a newborn.

I have just started a new job that i intend to stay with and i make 20k per year after taxes

My wife makes about 18k a year after taxes.

We just bought a house with no money down for 100k about 6 months ago.

The mortgage payment is $650 per month

I have a 646 credit score.

I have two credit cards maxed out.

1 card has 15,500 debt with a 16.65 interest rate and the other has 8,500 debt with a 9.99 interest rate.

I have Navy Federal Credit Union as a bank.

I have USAA for auto insurance

I used Hudson Valley Credit Union to purchase my car and have paid it off.

I am mostly interested on how to consolidate my debt the most effective way but with not too large of a payment each month.

Any advice is very appreciated!

Thank you all,

Will

10 Answers

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  • 3 years ago
    Favorite Answer

    It is too late now to tell you to not get expensive cellphones. Stop contributing to retirement plans at work. They do not pay 10% per year, let alone 16.66%. Calculate your tax liability with a sharp pencil. Do not have too much tax withheld. Apply the extra you get against the cc debt. Cut coupons, shop sales, use gas rewards programs, cc rewards programs, etc. Stretch your money whenever possible.

    Can you live without cable TV? {Try a good in-home antenna.} Your best option is to get help from one set of parents. (I am assuming) They can get a loan of $26,000* for 5% or 6%. Then pay off your expensive cc debt and FAITHFULLY repay the parents (say at their interest rate +1% - which can be sweet if they have $26,000 in the bank only earning 2%). $26,000*/ $400 a month is less than 6 years including interest. *Borrow enough to have a little cushion to start with.

    Good job (smart move) getting into the house. (But do not spend any money on unnecessary upgrades at this time.)

    {Eons ago, we used a cloth diaper service. Well worth it ! }

    Source(s): accountant and homeowner - thanks to the G I Bill
  • ?
    Lv 7
    3 years ago

    You appear to be over your head and on the road to bankruptcy.

    FIRST: TEAR UP ALL CREDIT CARDS.

    SECOND: Buy NOTHING unless it is absolutely, positively necessary for your life or health.

    THIRD: Contact a credit counselor.

  • Jason
    Lv 5
    3 years ago

    File bankruptcy, but it will wreck your credit for awhile, but you’ll build it back up by making mortgage payments. I’ve done it myself once, now my credit is over 800.

  • 3 years ago

    Pay off the higher interest cards first. Budget to pay off a whole lot more and don't charge anything more. Don't buy disposable diapers. Cut out all luxuries. If you have two cars, sell one. Manage with one. That will give you a whole lot more money to pay off your debt. Buy "used" baby closes & items. Shop garage sales, Facebook Marketplace, CraigsList.

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  • 3 years ago

    You do not say what banks / credit unions have issued your credit cards. If they are not Navy Fed cards, look into balance transfers to Navy Federal, They are currently offering 0% interest for 12 months and then a lower interest rate than you have after that.

    You should go into a NFCU branch and talk to them about your options

    Source(s): 38 years in business NFCU and USAA member
  • ?
    Lv 7
    3 years ago

    work your finances to pay off more each month on the debt and get rid of it

  • 3 years ago

    Unfortunately there's really no magic here. It's all about maximizing your income, minimizing your expenses and throwing as much money as you can at the debt. I don't think consolidation really does much for you. You'll be hard pressed to find a better deal interest wise. Your efforts are better spent finding ways to earn more and spend less.

    Getting on a budget is key. A second job is also a good idea.

  • 3 years ago

    Write everything off to your wife, divorce her, wait a month or two and file for bankruptcy. This way you don't loose the house or car, but the bank won't be able to take it from you then you file for it because it's hers and you two aren't together legally.

  • 3 years ago

    Advice - you need to get a second job and every last penny you earn you throw at the card with the highest interest. The problem is of course your outgo is too much for your income so you can either reduce your outflow in otherplaces, increase your income or both.

    You also need to sit down and make a budget (and stick to it). That may mean cutting out things like eating out (completely - even fast food), brown bagging it for lunch at work, instant coffee made at home instead of that $2 Starbucks, getting rid of the smartphone and going to a Trak phone for phone calls only, cutting back on cable (no premium channels, etc.). Check with your utility company and see if they can do a home audit for heat leaks, etc. and then fix the house, if your water heater is not insulated, do it (the heater is one of the biggest drains on your electric use), start buying store brand instead of name brands.

    As for consolidating your debt, usually this is a bad idea - al you really do is lower your payment and end up paying twice as much in interest - you are better off biting teh bullet and looking at behavioral changes.

  • 3 years ago

    If you can get a new card that accepts interest free balance transfers, go for it.

    Pay off the higher rate card quicker.

    That's a very low income level...perhaps consider a second job. You are a marine, you can handle a second job.

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