What s the fastest way of getting completely out of debt?

My income is $3107 a month and I have $6,500 credit card debt and a 2017 Honda Ridgeline Honda 2WD. I owe 30,000 approx on it and have another car that I owe nothing on. I m upside down on the truck. Honda will only give me $22,000 for it. He gets SSDI of $1090 a month and in debt with 2 credit cards cause he lost his part time job twice in six months. He fixes my vehicle sometimes and grocery shops for me sometimes and I give him gas. I buy his paper needs, cleaning supplies, bathroom needs, groceries. The $600 he gives me pays for everything including rent and food and utilities.

3 Answers

Relevance
  • Eva
    Lv 7
    1 month ago

    Sell the car that is paid off and apply that money to your credit card debt. He should be able to pay off his credit cards since he has $490 a month to spend. At least $290 of that should go to the cards. You bought a vehicle that was too expensive for your income, so now you'll have to deal with the consequences.

    • Login to reply the answers
  • Anonymous
    1 month ago

    Who is "he", and how dafuq can you own $30K on a 2-year old truck ?

    • Login to reply the answers
  • Rick B
    Lv 7
    1 month ago

    You make less than $40K a year and thought it would be a good idea to buy a brand new vehicle, and a very expensive one, at that???? At the same time, you thought it would be wise to run up debt equal to two month's of income???

    You need to cut your expenses to the bare bone. You need to find extra income - work overtime, mow lawns, babysit, pressure wash driveways, drive for Uber, etc. Pay the minimum on all your debts. Find the debt with the smallest balance and pay EVERY extra cent you can toward that debt to get it paid off as quickly as possible. Then, start paying extra toward the second smallest balance until it is paid off, etc. This is Dave Ramsey's "debt snowball".

    I find it hard to believe that you could be that upside down on the truck! Did you roll over negative equity from a previous vehicle? The only way out of that is to bust your butt and come up with $8,000 so you can get out of it.

    Not really sure who "he" is or how he fits into your finances.

    • Login to reply the answers
Still have questions? Get your answers by asking now.