‘I feel like I’m stuck in a situation I put myself in’: How can I change my financial habits to get out of debt and regain control of my life?

Hi Money Minder,

I need some guidance because I feel like I’m stuck in a situation I put myself in. My main concern are these credit cards. The interest keeps killing me. I don’t know if I should apply for a balance transfer card with 0% for 12-18 months and try to pay it off. I have been budgeting better. No more going out to eat, deleted DoorDash, no more unnecessary spending. I want to get these cards down and no more interest. I hope to one day get to a point where I don’t use credit cards.

Here’s what I’ve got:

Income: $4100/month from work and VA

Amex – $3700 24.99% interest
Wells Fargo – $3600 19% interest
Citi – $3400 no interest yet.

No car payment.

Another huge problem I have is my house. I made a huge mistake by refinancing it earlier this year..now I’m at a point where I’m stuck and I can’t sell it if I wanted to. I’m paying $1935/ month for the mortgage.

Car/House insurance is $106
Energy bill is $235
Gas about $100/month
Groceries about $300/month.
Cell phone bill is $102
Internet is $89
Dog and cat food is about $100

Give or take, fixed monthly expenses is around $2700-$3000 total give or take. I try to keep the grocery bills about the same every month. I eat the same meals and cook the same old stuff when I cook. I am working on not eating out and I’m doing better. I feel like that is the majority of my problem. Going out/eating out/entertainment. A big chunk of my remaining money goes to paying the credit cards. I feel like my payments are doing nothing because I pay so much interest.

Where I’m sitting at now…I’m one missed paycheck from losing my house. I hate this feeling. It keeps me awake from stress.

I have been browsing the sub looking for advice so I’d figure I would post instead. My family’s advice is all things I don’t really think are great options:

Sell my house.. that would be nice but I owe more than it’s worth now. I know. It was dumb but I was desperate at the time. I spoke to a buddy who is a real estate agent and he said I would be out about $15k in fees I’d have to pay up front in order to sell. That’s not ideal. Plus I have to pay to move to a new place that could be just as expensive for rent, I have pets..it’s just not ideal at all

Get a roommate. I’d like that. However my house is small. It’s got one bathroom. It would have to be someone I’d like to be really comfortable with because I have a feeling we’re going to be seeing a lot of each other. None of my friends are interested. I don’t think having a stranger in my house is ideal at all and I think most of you would agree with that. There’s so much liability.

Get a second job. I work full time. I work all the overtime I can. I don’t have much spare time to work a second job. With my current job (a government job) they require a person working a second job to get permission from the higher ups to approve it. That takes time. They don’t always approve it. It’s already a hassle trying to get a job, but to add my current employer needing to get involved is an extreme headache. I applied to work Amazon Flex and they denied me because they said there are no routes in my area and the closest routes are 45 mins to an hour away. It’s not ideal. I would do DoorDash, however a buddy of mine does DD and says it’s not worth it anymore. The market is so oversaturated with drivers in my area that once an order pops up, it’s immediately taken. He said he’ll just sit in an area for hours and not get one order. That’s a waste of time. You have to use your own gas, etc. it’s not ideal.

File for bankruptcy. I feel like bankruptcy would be a very very last resort. I think I can possibly get my credit cards handled by better budgeting. I just really need advice from someone other than family because they keep saying the same things that I just mentioned and it’s frustrating to explain over and over again why their solutions just aren’t super ideal or possible for me. I cannot ideally move. I’m stuck and I need help.

Edit: another option I’m thinking of is halting my payments to my retirement. With my work, I contribute to 2 separate retirement accounts. One matches. If I forego paying for one, it would free up almost $500/month. I’m hesitant because retirement accounts are very important obviously. But to mitigate some of this, I think it might be necessary.

Thanks for listening and helping out, Money Minder.