I know we’re all so tired of the ‘how do I pay off CC debt?’ question. The answer is almost always cut spending and pay down the high interest cards first. Done.
I’ve realized that on my own, I suck at this, and could really use a mindset change – I’ve been in CC debt for a decade now, I’ve always lived in HCOL areas and lived above my means, I was young and didn’t want to miss out…Now, in my thirties, I’m living with those poor decisions by not being able to buy a house or build a savings since I’m hemorrhaging money each month trying to pay down my cards. No matter how much more money I make, the debt never seems to go away.
I’ve been *managing*, probably irresponsibly, by opening a lot of credit lines and using balance transfers and low interest loans to move my debt. Luckily, my credit score is still 760+
right now I have about $27k in CC debt, distributed between the accounts below. I make enough to pay them each month but it’s holding me back financially. Some months I’ll be good about cutting spending, then a trip comes up that I can’t miss or I simply lose sight of things, so I’m seeking advice on how to *really* act on this. If anyone has gone though something similar I would love to learn how you got out from a planning and mindset point of view.
Monthly pay after taxes = $6,300, this includes a minimal 2% going to my 401k
Rent = $1,800 including utilities
Student Loan = $760
Car payment + insurance = $380
Small interest loan 1 = $440
Small interest loan 2 = $ 490
Groceries = $400-500
so I have ~$1,900 a month to use towards debt or savings
that $1,900 always gets spread across these accounts
CC card 1 – $300
CC Card 2 – $800
CC Card 3 – $350
CC Card 4 – $1,900, balance transfer promotion so no interest until 10/22
CC Card 5 – $8,500, balance transfer promotion so no interest until 05/23
small interest loan 1 – $2,600
small interest loan 2 – $12,700
yes, I’m embarrassed after typing that last part out