I’ve recently got into Gambling addiction and lost around $11200. Help me Get out of gambling debt: I have no clue how to manage my debt. How can I escape this financial trap?

Gambling debt

Hey Money Minder,

So, I messed up big time with my gambling addiction and now I’m $11,200 in the hole. Here’s the breakdown:
1. I owe $3,500 on a credit card with a crazy 20.99% interest rate.
2. Another $3,700 on a personal line of credit at 9.6%.
3. And to top it off, $4,000 borrowed from friends.

My credit score is just okay at 760, and I really don’t want to tank it in the long run.

My monthly income is about $5,000, but only if I bust my butt every single day. As for expenses:
1. $1,500 goes to my brother every month.
2. Another $700 for miscellaneous expenses throughout the month.

Can you help me out with the best way to manage this debt? I’m totally lost here and it’s my first time in this mess.

Thanks, Money Minder! Take care.

Response from THE MONEY MINDER:

Hello There,

I’m really sorry to hear about your struggle with gambling addiction and the debt it has caused. It’s important to address this issue head-on, so let’s focus on a realistic and practical approach to managing your debts. Firstly, it’s commendable that you’ve taken the initiative to seek help.

Given your monthly income and expenses, it’s essential to create a detailed budget. Start by cutting down on unnecessary expenses to free up more money to pay off your debts. Consider speaking to your brother about potentially reducing the amount you pay him each month temporarily to focus on clearing your debts.

When it comes to your debts, prioritize paying off the highest interest rate debt first. In this case, it would be the credit card debt at 20.99%. Make minimum payments on your other debts while directing as much money as possible towards paying off the highest interest debt.

Consider consolidating your debts into a lower interest loan if possible. This can help simplify your debt repayment and potentially lower your overall interest costs. Avoid borrowing more money from friends or taking on additional debt to pay off existing debts.

Lastly, seek professional help for your gambling addiction. Addressing the root cause of your financial struggles is crucial to preventing a recurrence in the future. You may benefit from counseling or support groups that specialize in gambling addiction.

Remember, it’s essential to stay committed to managing your debts and seeking help for your addiction. It may not be easy, but taking control of your finances and seeking help will lead you towards a more stable financial future. Stay strong and don’t hesitate to reach out for assistance when needed.

Sincerely,

THE MONEY MINDER