‘I make $112,000 a year’: I have $30,000 in credit card debt and need to get my finances in order amidst a messy divorce. How can I pay it off quickly?

Hi Money Minder,

Yo, so I’ve got a bit of a financial dilemma. I’m bringing in $112,000 a year and wondering if taking out a personal loan is the way to go to pay off my debts. I attempted to open a new credit card, but they only approved a $10K transfer, which isn’t cutting it.

I’m smack dab in the middle of a messy divorce, and honestly, some of this debt is on me, while some is due to the divorce. I’m really trying to straighten out my finances so I can eventually have my own place.

Mind helping me figure out a plan to dig myself out of this hole? Real eager to get back on track financially.

Cheers,
Financially Insecure Gal

Response from THE MONEY MINDER:

Hello There,

I’m sorry to hear about the challenges you’re facing during this difficult time of your divorce. It’s great that you’re taking steps to get your finances in order so you can move forward. Based on the information you’ve shared, it seems that taking out a personal loan might not be the best solution at this time, especially if you’re unable to secure a loan for the full amount of your debt.

Given your income of $112,000 a year, it may be more practical to focus on creating a detailed budget that allows you to allocate a portion of your income towards paying off your debts. Start by listing all your expenses and identifying areas where you can cut back to free up more money for debt repayment. Consider prioritizing high-interest debt first to minimize the amount you pay in interest over time.

As you work on paying off your debts, it’s also important to build up an emergency fund to cover unexpected expenses and to save for your own place. This will give you a financial cushion and help you avoid relying on credit in the future.

Remember, tackling debt takes time and dedication, so be patient with yourself as you work towards your goals. Stay focused on your financial priorities and make small, consistent steps towards achieving them. With perseverance and smart money management, you’ll be able to pull yourself out of this challenging situation.

Best of luck on your financial journey, and remember that you’re not alone in this. THE MONEY MINDER wishes you success in achieving your financial goals.