Stuck in debt over $54k, paying it off feels impossible, what should I do?

Debt Forum
1

I’m 25 and was doing well paying off my credit card debt until early 2024. I even cleared some cards and a personal loan. But after some family emergencies, funeral costs, and home repairs, I maxed out my credit cards again. Now, I’m at $54k in total debt, with $36k on credit cards and $18k left on a personal loan.

I bring home about $3k each month after savings, retirement, and minimum payments, but the high interest rates (20%, 15%, and 14%) make it feel like I’m making no progress. I thought about taking a personal loan at 9.8% to consolidate everything, which would lower my monthly payments and free up $1.2k to $1.6k, but I’m worried about my credit score (currently 693) and the risk of falling back into debt.

I’ve already cut back on everything—meal prepping, selling stuff, canceling subscriptions, and skipping social events. I barely spend anything on myself, but the stress is getting to me. I can’t sleep, and all I do is crunch numbers, trying to figure out a way out. Would consolidation make sense, or should I stick to my plan and keep chipping away at it?

2

Debt like this isn’t a sprint, it’s a long-term process. Try to balance paying it off while still living your life within reason. You’ll get there if you stay consistent.

3

How many hours are you working per week? If you’re not already at max capacity, maybe an extra shift or side job could help speed up the payoff.

4

Emergencies always happen, so planning around ‘no emergencies’ isn’t realistic. I’d try calling your credit card companies again to see if they can offer a temporary interest reduction. Also, cutting up the cards and keeping only one for real emergencies could help prevent more debt. Consolidation is only good if you’re sure you won’t rack up more debt.

5

You need to stop being your family’s safety net. If you keep covering their emergencies, you’ll be in the same position 30 years from now. Focus on your own financial stability before trying to help others. They need to find a way to live within their means.

6

You may need a second job. Cut every unnecessary expense and throw every extra dollar at the debt.

7

Have you considered another source of income? Even something small on the side could make a difference.

8

If you can get a personal loan at a much lower interest rate, it might be worth it, but only if you commit to not using credit cards again. Also, consider getting a second job and putting all that income toward debt.

9

You really need to have a conversation with your parents. Let them know you can’t keep bailing them out while struggling with your own finances.

10

You’re not making progress because you’re trying to bail out everyone else while drowning yourself. You need to learn to say no. A second job could help, but cutting expenses and setting clear boundaries with family are just as important.

11

Look into a balance transfer credit card with 0% interest for 12 months. That could give you some breathing room while you tackle the highest-interest debt first.