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[David B]

Hey all. I've never posted in off-topic before. But I'm here because I probably need some help. I have too much credit card debt and yet I keep going but I need a better gaming computer with a better graphics card, I need that PS5 Pro, I want that new Xbox. So I'm like a big spender on stuff and now I finally recognize I'm a big huge spender. I already have $11,000 in credit card debt right now. I added up the money due from each card and went OMFG! I owe $11,000 in debt! That's when I finally went don't buy that computer, don't buy it, you don't need the graphics, you don't need the computer, enjoy the stuff which you have now. So if I could just have some other people share there stories about having debt as well that would kind of help. Also whatever you think about me finally realizing the truth that "hey look I have a huge load of debt, stop using the freaking credit cards!"

 

[Ass of Can Whooping]

Are you paying interest on these cards?

 

[David B]

Are you paying interest on these cards?

Yeah. The interest are like 25.9 % or higher on every single freaking card.

 

[StreetsofBeige]

Maybe rates changed last bunch of years, but there should be cards at 15% or less. Look for a basic card with no annual fees.

Or look into getting a Line of Credit from your bank. Even with today's high interest rates it's probably 10% tops.

Get approved for a limit hopefully that can cover the whole $11,000 and transfer it over at the lower rate.

 

[Ass of Can Whooping]

Yeah. The interest are like 25.9 % or higher on every single freaking card.

Oh baby what is you doing.

Are you using a site where you can see credit card offers etc? We have one called ClearScore in the UK, so I can see offers for 0% interest on balance transfers for x amount of months. If you can take advantage of those do that.

Obviously none of that matters if you don't fix this spending addiction you have

 

[Sybrix]

I assume it's the same in the USA, but in the UK we have various comparison sites such as Experian where you can find credit cards with zero % interest for certain periods of time.

I've had various credits cards for years and havent paid one penny of interest, when the zero % promo runs out, you can move the balance to another card that is offering a zero % promo period. These are normally between 12-24 months.

I'm currently looking for another card now as the zero % period runs out next month, i've found a few, some that even offer a zero % transfer fee also. When you move balances to another card most have a small 1-3% transfer fee, but i've found a couple of cards that are offering zero % transfer fee and zero % interest for 2 years.

 

[Pagusas]

I assume it's the same in the USA, but in the UK we have various comparison sites such as Experian where you can find credit cards with zero % interest for certain periods of time.

I've had various credits cards for years and havent paid one penny of interest, when the zero % promo runs out, you can move the balance to another card that is offering a zero % promo period. These are normally between 12-24 months.

I'm currently looking for another card now as the zero % period runs out next month, i've found a few, some that even offer a zero % transfer fee also. When you move balances to another card most have a small 1-3% transfer fee, but i've found a couple of cards that are offering zero % transfer fee and zero % interest for 2 years.

it is the same in the US, we have tons of sites where you can find some 0% balance transfer cards (with usually a 3 - 5% transfer fee).

You need to do that OP, but you also need to correct your thinking as this will just be a Band-Aid step to help stop the bleeding. You need to be fully engaged in a money management platform like Quicken, know where every penny is going every day, and track everything.

anyway, start with a balance transfer, consolidate the debt into a 0% for 12 - 18 months if you can, snowball the payments to get it knocked out, cut back on your spending and enjoy the things you have right now (literally force yourself into an agreement that you'll only enjoy what you have for the next 12 months, play your back log, i think you'll find you have a ton that'll keep you happy and you'll appreciate it more.)

Lastly, you need to get yourself on a forced savings plan, you should be paying yourself first, and then giving yourself a set entertainment/electronics budget each month that you STICK TO. No going over, if you want prettier toys that cost more, you save that budget each month, or you increase your earnings, but nothing happens until you pay yours savings first.

 

[IDKFA]

Yeah. The interest are like 25.9 % or higher on every single freaking card.

You could look to take out a new card with 0% interest. Then transfer the balance over to that card and then start paying it off ASAP.

I don't know how much you earn or what other debts you have, so paying it off quickly might be hard. Personally, I'd be selling as much of my stuff as possible and throwing everything at the debt.

 

[MDSLKTR]

I owe $11,000 in debt!

Rookie numbers.

Yeah. The interest are like 25.9 % or higher on every single freaking card.

Rookie mistake.

First step is to consolidate all those cc on a single cc with single digit interest rate or even 0% promo rate like Sybrix mentions. Try to drop the overall debt under 10k before you'll have more chances at banks.
Pay up monthly before due date as much as you can, like a grand a month and sell shit you don't need, that new GPU and Pro can wait.

 

[David B]

Yeah thanks guys. Unfortunately I can't really do much of what your saying because I live on SSI. I'm not allowed to add money to my bank account. Only the SSI is allowed in the bank account, I can not add money or my SSI is reduced. So all I can really do is continue to make payments on my cards.

 

[Ass of Can Whooping]

Yeah thanks guys. Unfortunately I can't really do much of what your saying because I live on SSI. I'm not allowed to add money to my bank account. Only the SSI is allowed in the bank account, I can not add money or my SSI is reduced. So all I can really do is continue to make payments on my cards.

You won't be adding money with a balance transfer. You're just moving your debt on the high interest card to hopefully a 0% interest card. Have you looked at any of these comparison sites?

 

[David B]

You won't be adding money with a balance transfer. You're just moving your debt on the high interest card to hopefully a 0% interest card. Have you looked at any of these comparison sites?

I looked for no interest cards and stuff. I really can't get approved for anything as my debt is already way too high. So all the cards I've applied to and even 0% interest cards always go no we can accept you as your credit card usage is too high. So I got no where to go.

 

[SlimySnake]

i have several credit cards but no credit card debt because i pay off the balance every month. The interest rates on those credit cards is insane. Most have 20%. some 29%. Even if you are late by a month, you get charged like $50 on a balance of $2k. fuck that.

I just dont buy big items or if i do, i buy from home depot or bestbuy and use their credit cards to make monthly fees without interest as long as i pay them off in 6 months.

 

[Ass of Can Whooping]

I looked for no interest cards and stuff. I really can't get approved for anything as my debt is already way too high. So all the cards I've applied to and even 0% interest cards always go no we can accept you as your credit card usage is too high. So I got no where to go.

Right well first you need a mindset change. Forget about upgrading and getting the pro or Xbox.
The snowball method is probably better for you. Minimum payments on everything and work on paying off the smallest amount as fast as possible, then onto the next.

Keep using comparison sites as there are always new offers. Your existing cards will also give you 0% offers occasionally in my experience so if you clear one card for example keep checking the account for an offer.

Your debt isn't that bad honestly, it's manageable if you put the effort in. Look at financial audit on YouTube to see what real debt looks like and make sure you don't end up like one of them

 

[The Cockatrice]

You should just keep collecting debt until you die. Its not like the bank is gonna come after you in the after life. Ez pz hack.

 

[StreetsofBeige]

If messing around with credit cards and such isnt possible, try to minimize costs as much as possible.

Unless you are already at rock bottom cell phone, tv, internet plans, chances are pretty good anyone can drop a tier or two and save themselves $40/mth across sub plans. If you are on other sub plans like Amazon Prime or Spotify etc.... drop them and save yourself a couple hundred more per year.

 

[jason10mm]

First off, be glad you caught the problem at just 11 grand!

Two basic strategies for this.
1. Target the card with the lowest balance and put ALL YOU CAN towards it, while just paying the minimums on the others. This way you see a tangible result as fast as possible.
2. Target the highest interest card (regardless of balance) and pay ALL YOU CAN towards it, minimums on the others, because that higher interest card is costing you the most.

Take an honest assessment of your budget. Cut ALL the luxuries, and I bet you have more than a few, prepare thyself for a couple of months of relative privation at least. I also bet you have lots of "outdated" (to you) electronics lying around if you are an aggressive upgrader, so sell all that stuff. Or consider selling your top line gear and falling back on the old stuff just for the next 6-12 months. I bet there are lots of older titles you COULD play and never even notice the difference! Especially if you cut out all the social media that fuels the drive to have the latest and greatest in hardware and software. Or go join a library and read free books. Just 11 grand is totally doable in a year or so, especially if you have a steady income stream you can use to budget around.

 

[bitbydeath]

11K isn’t too bad but that interest rate is going to be a problem. You should go talk to your bank and see what they can offer to help, then throw everything you can at it. Live on some two minute noodles for a while, cancel any subscription services you might have and sell anything you can to get it paid off ASAP.

 

[ConkerTheSquirrel.]

Start with your use of words: you don't need those things. I notice that people who tend to get caught up in needless debt is that they're prone to FOMO, or fear of missing out. It's okay if your hardware's not up to snuff, so long as it runs the games, I say. Your piece of mind in knowing that your debt is cleared should take number one priority.

Also, I'm not a psychologist, but maybe you're spending out of a need to cope with your real life problems?

Take care, man. You can pay it off.

 

[AJUMP23]

First stop buying stop the bleeding. Look at consolidation. Then be content with what you have. Stop using credit. Save then purchase. I bet you purchase on impulse. Or a desire to be bleeding edge.

Cut up your cards.

You need to budget every paycheck to start paying down the debt. Shouldn’t take long if you cut the fat and have some discipline.

 

[analog_future]

Yeah, pay that shit off as quickly as you can.


It's not the end of the world yet, though. I've got in-laws that have $70k+ of credit card debt, and don't make anywhere near enough income to ever be able to pay it off. Literally just going to make minimum payments for the rest of their lives and they're constantly trying to get above water. What a nightmare.

 

[Drake]

Couple of things OP. I don't really have much to share as far as a similar story goes unfortunately. My father is a cheapskate and I inherited that gene from him, almost to a fault.

I do however have an experience with a close friend who was deeply in credit card debt, even more so than you. He followed Dave Ramsey's method and it worked for him perfectly. He now has his house paid off, zero debt and a huge retirement savings. I will admit that Ramsey's methods aren't the most efficient, but from what my friend told me they keep you very motivated because you see the progress every month . As soon as he had one card paid off, he closed it and moved to the next one.

Him and his family actually went on Dave Ramsey's show. It was great because he really did want to express his gratitude because the method worked so well for him.

This all being said it was a HUGE lifestyle change for my friend and his family. Lots of home cooked meals and kept spending to an absolute minimum. He told me his wife was ready to kill him by the end, but it was worth it because they've been living debt free for like 5 years now.

I'll even save you some work OP. Here is the method Ramsey says to use : Ramsey's preferred debt payoff method is the debt snowball method. This strategy entails listing all your debts from the smallest to the largest balance, ignoring interest rates. From there, you'll pay the minimums due on all but the smallest debt, which you'll start paying aggressively until it's gone.

Do with this information what you will and good luck.

 

[Go_Ly_Dow]

$11,000 is a lot, but assuming you work and your other overheards aren't crazy then it's something you can pay off but you MUST get on top of now and ending the spending madness.

I have seen many people spiral into debt and it quickly become $30,000, $50,000 or total bankruptcy.

At a personal level people tend to splurge on stuff they don't really need to distract themselves from something! So it's good to recognise that and refocus yourself on pursuing other things that are better for your long-term self. Whether that's exercising, saving, personal relationships etc....

There's no problem with enjoying tech and gaming but if you've got a decent PC and PS5 newer stuff is pointless as a couple extra pixels isn't going to change the fundamental game. Upgrade smartly and over longer periods of time.

 

[Mossybrew]

Consider Bankruptcy and a fresh start.

 

[Nitty_Grimes]

I'm not sure how it works in the US but in the UK if you had a debt of £11,000 a lender is highly unlikely to offer you a zero percent balance transfer credit card with an assumed £11,000 limit to lump it all on.

You really need to speak to your bank(s) lender(s) or like a debt management company asap.

 

[RSLAEV]

What is your current graphics card? What resolution are you playing games at? I'll tell you flat out you don't need a PS5 or the new Xbox. There are only a handful of exclusives and it doesn't look like you're in the right financial position to think about acquiring them. Get into indie games, older games, maybe emulation. Disabuse yourself of the notion that you can afford to keep up with the Joneses when it comes to gaming-at least until you can get out of debt

 

[JimmyRustler]

lol @ OPs new tag

Stop buying stupid stuff you don’t need. It’s that easy. I really don’t get it. Same topic drove my mom to bankruptcy.

 

[jufonuk]

As an adult 11k in savings isn’t much but it’s a lot to owe

Pay it off as soon as you can.
Make a budget.

 

[Nitty_Grimes]

lol @ OPs new tag

It's been that for some time iirc...

 

[JimmyRustler]

It's been that for some time iirc...

He seems to be contempt to live up to it then.

 

[Rival]

I’m questioning whether or not to go ahead with my ps5 pro preorder and just cracked $25k in savings. You don’t “need” any of that shit. If you are buying things on a credit card and carrying a balance you are an idiot and yes I’ve been there in my younger days. The only debt I have had in the last 5 years or so is my mortgage which I am paying extra on. Carrying loads of debt, especially credit card debt is insanity and a one way ticket to being perpetually broke.

 

[SJRB]

Amateur hour.

Come back when you have 60k in student debt you have to pay off.

 

[DaleinCalgary]

I own Visa stock, you are doing just fine.

 

[jufonuk]

I own Visa stock, you are doing just fine.

 

[SidViscous]

Spend less on candles

 

[RagnarokIV]

It’s because of all those “gaming PCs” you keep buying only to sell and then buy another.

 

[BennyBlanco]

11k isn’t really that terrible OP. I would probably do what other people are suggesting with the 0% interest transfer but it could be way worse. Stop borrowing money at high interest rates to buy depreciating assets lol.

 

[ReBurn]

Consider Bankruptcy and a fresh start.

I wouldn't do that over $11K. It's not enough debt to make it worth wrecking your credit for 7 years over. Bankruptcy can keep you from getting a better job or a better home. Then you have to start your credit over.

Cut up the credit cards and get a part time second job and put the extra money you earn toward paying them off. Sell stuff you don't need and put the money toward paying them off. You'll get to maintain your creditworthiness and eliminate your debt with just a little extra work.

 

[lifa-cobex]

11k isn't the end of the world. You could take care of that in a couple of years with careful budgeting.

Don't fret. Most people are in dept these days. It's normal (unfortunately)

Pay off cards with other cards that have 0% for X amount of time. If you keep on it. It will eventually chip down.

 

[SJRB]

Spend less on candles

No

 

[chromhound]

Time to sell butthole and feet pics

 

[navii]

Some things I learnt that I keep in my head whenever I want to buy something. I can buy equipment, but I can't buy enjoyment. And you only can buy so many things in your life until you no longer earn a living (ie retirement). So money is a finite resource for most people, try not to waste it.

Also, once you get some savings, they are harder to spend than not-real-credit-card-money.

Also also, get a hobby that's cheap.

 

[Mossybrew]

I wouldn't do that over $11K. It's not enough debt to make it worth wrecking your credit for 7 years over. Bankruptcy can keep you from getting a better job or a better home.

Ive never heard of credit scores affecting employment. And unless op is planning on buying a home anytime soon thats not a concern. Ive done two bankruptcies in my lifetime with pretty much zero repercussions and I have a great credit score these days.

I know it might not be right for OP but its absolutely worth looking into.

 

[Unknown Soldier]

Just buy more stuff and then cancel the credit cards they can't get you if you don't have the card anymore

Spoiler

This is not financial advice, I am not a financial advisor, maybe you should consider not having so much debt tho

 

[Dirk Benedict]

Okay, let's figure this out...

 

[Blade2.0]

I make almost nothing but have zero debt. But it's only because I've had help. Parents helped with college, otherwise I'd be in student debt like every other person that went to college in the states. Got lucky as hell there.

 

[Nitty_Grimes]

11k isn’t really that terrible OP. I would probably do what other people are suggesting with the 0% interest transfer but it could be way worse. Stop borrowing money at high interest rates to buy depreciating assets lol.

No moral credit card lender is going to give OP a balance transfer credit limit of 11K when there is already 11K of debt. Stop suggesting things like this!!

The lender would have to be clinically insane.

 

[Trunx81]

Been in your position, OP. My wife had a bad accident and got us into really red numbers. I had the chance to rearrange credits that helped to pay off, but in your case it seems not the case. Have you considered a go fund me campaign? If you are on social media or twitch, people tend to be quite generous. Even if it’s not so much, what do you loose if you try?

 

[EviLore]

$11k is like 30 bags of groceries now, don't beat yourself up too much about it.

 

[Soodanim]

I don't know why I didn't consider this in the last "I want to buy" tbread. Chronic spenders don't live within their means.

There has been some good advice, and I think at bare minimum the take away should be to speak to your banks and see what your options are.

If you are serious about sorting this out, put together a spreadsheet and lay out the trajectory of each card over the next 24 months at minimum. If nothing else you need to see what you're dealing with to plan a fix.

But also you might benefit from seeing the effect of what you've been doing to yourself and how this is going to get worse.

Beyond the debt but to aid it, a wider financial management planner/tracker will be of benefit. You will be able to see what you currently spend and therefore what's left over.

If you set and keep to budgets of what you can realistically spend I think you tend to ride out the impulse spending because the urge fades over time. By the time you've saved up 3 months' worth or whatever it takes, that PS5 Pro might not seem so essential.

There are many places and resources for planning your own personal financial management, and your banks might be included in that list. Banks here in the UK do, at least. By even opening up Google Sheets will probably give you a template for financial planning.

I sincerely hope you make positive changes. I know this is going to happen: please don't convince yourself that one last spend is fine. You're already on the slippery slope, and at 24% anything is going to make it worse by more than just its immediate value. Again, the spreadsheets can help you see the true number of any given spend.