‘I’ve been living paycheck to paycheck ever since I’ve tried to tackle this debt’: With $15k credit card debt and struggling to make ends meet, how can I break free from this financial burden?

Hi Money Minder,

Hey there, so I really messed up and let my ex run up my credit card to $25k. No clue what she spent it on and now I’m left with this massive debt. I’ve managed to pay it down to $15k by chucking $1,000 at it each month, but it’s been a struggle living paycheck to paycheck. The interest isn’t too bad at 6%, but I need some advice on what to do next. Any help?

Thanks,
Bill the Budgeter

Response from THE MONEY MINDER:

Hello There,

I’m sorry to hear about the tough situation you’re in, but I appreciate your proactive approach to paying off the debt. It’s commendable that you’ve already managed to reduce it to $15k and are steadily making $1,000 payments each month.

Given that you’re living paycheck to paycheck to cover these payments, it’s clear that this debt is significantly impacting your financial stability. While the 6% interest rate isn’t exorbitantly high, it’s still adding to the burden. One practical approach you could consider is looking into transferring the remaining balance to a balance transfer credit card with a lower interest rate. This could potentially save you some money on interest payments and make it easier to tackle the debt.

Additionally, it might be worth reviewing your budget to see if there are any areas where you can cut back temporarily to allocate more funds towards paying off the debt. Creating a detailed budget and tracking your expenses can help you identify areas where you can reduce spending.

It’s important to stay disciplined and focused on your goal of becoming debt-free. Try not to incur any additional unnecessary expenses, and continue making consistent payments towards the debt. It may take time, but with perseverance and careful financial management, you will eventually be able to pay off the remaining balance.

Remember, financial challenges like these are common, and overcoming them requires dedication and a solid plan. Stay determined, and you’ll get through this. If you ever need further assistance with managing your finances, feel free to reach out. Best of luck on your journey to financial freedom!

Best regards,
THE MONEY MINDER