How can I pay off $16K in credit card debt fast with high interest?

C

ccxoximeta

New Member
I needed to reduce my work hours while in nursing school, then my patient was admitted to a nursing home, so I mostly lived on credit cards until graduation. I’m making decent money now, but I’m around $16,000ish in credit card debt. I’ve made every payment on time and pay a little extra, but with interest it feels like I’ll never get it paid off. I’m not sure which route to take. Debt consolidation? Bankruptcy? Negotiation? I’m trying to figure out the best way to get out of debt SOONER and pay LESS than what’s owed. I’m 36 and rent an apartment. I’d eventually like to buy a home before I die , but my long-term boyfriend is also really in debt and preparing to file bankruptcy (which is why we’ve never married), so I don’t think owning a home is anywhere close in our future. My credit is currently 670. I already have a car loan in my name and my mom’s, so I’m not worried about that part. (My mom has really good credit and will cosign whatever I need her to.) With that said, I guess I’m saying I’m not super duper worried about my credit score. I’d just like it all to go away so I can enjoy my life without the debt. What do y’all recommend? These are my balances and APRs. (I have a few small nes, like $200, that aren’t listed and that I plan to pay when I get my taxes back. I can’t log in to my CreditOne to get any info on that one, but it’s probably $1,500 or so.)
I was going to pay off Affirm and Care Credit first. Should I pay them in this order? It makes more sense to me to save on interest? Should I call them all first and see if they’ll negotiate? Should I just file for bankruptcy? I don’t know what to do.
 
Look into a debt consolidation loan. That’s what I did.

Combined all my debt from 25.25% interest to 11.45%.
Cut over half my interest rate.

I had to increase my credit to get a good rate, though.
 
You didn't say how much you can pay each month or what the minimums are. The problem isn't the total debt of $16,000 that actually isn't that bad. The problem is the insane interest on all of it plus the.number of accounts. When you add up and pay all the minimums, the interest just eats back into it. Normally, I'd tell you to do the debt snowball because you have to feel the pain of creating a budget and actually paying off each debt separately, and it would also change your spending habits. The smartest way out is probably a low interest loan, but I feel unless you change your spending ways, this will happen again. So in a perfect world, if you learn from your mistakes: no bankruptcy, negotiation won't work because each debt is fairly small, try to get a low interest loan and hammer it.
 
The overall debt isn't terrible. You should have good income as a nurse. You likely have strong overtime opportunities, and if not, you can certainly get a per diem job. When you can likely make $500 or so for picking up a per diem shift, you can absolutely get out of this. Do a 30 day spending freeze. Live as if you don't have a single cent to spend obviously pay your bills and gas, etc., but not a single luxury. You'll be amazed at how much wasteful spending you have. And if you're getting a tax refund, adjust your W4 so you don't, and get that money back in your paycheck for more margin. Any method you choose to pay off will work. Snowball works best for me because I like instant gratification and reducing accounts. Avalanche saves you more on interest. Either is effective.
 
Follow the Ramsey plan. You can find him on YouTube and TikTok. My husband and I paid off $100,000 in a little over a year. Now we’re saving to pay cash on a new barndominium build. We used to live paycheck to paycheck and never have extra money.
 
If you can afford the payments, keep doing what you’re doing. Try to pay them off.
Maybe contact each one. Try to get a temporary interest reduction. Some companies will do that if you apply for temporary hardship.
Your ideas to take care of them have one problem. Each will hurt your credit score.
I agree with another poster. Usually, I’d use snowball. In your case, I’d probably try avalanche. You have many high APRs.
 
So, you’ve got homeownership in YOUR future. Don’t tie yourself down to someone who’s in the same situation. Consolidate your debt, get out of the relationship, and go buy your house.
 
And use the snowball method to pay. So get the smallest ones out of the way first. And once you do that, use the monthly payment and any extra you can afford towards the next card and so forth. Or another option is a consolidation loan where you just have one payment each month so it’s cuts down on the various interest rates.
And if you are able too take on a temp second job or seasonal employment, throw all of that into it.
 
Use your tax returns to pay off what you can on the highest loans first, then see if you can get approved for a 0% interest card for the rest. If you!can’t, debt stack by paying off the highest loans first meaning make minimum payments on the others and overpay on the largest cards you can… Also, maybe try calling Affirm and see if you can get on a payment plan that just includes a base APR, like I have a “loan” through them for some jewelry that isn’t on my credit report, and I pay the same amount every month for 24 months. And I know Capital One, Discover, and Chase also offer 0% APR balance transfer promos, so call them and see if they can point you in the right direction.
 
Get your California license. Go hard for 3 months and that’ll get wiped out easily. (Even with the higher cost of living) staff nurses make bank in Cali I did a travel assignment out there.
 
I browsed the comments. Here's what I was able to surmise with my debt methods. With zero extra payments, domino wins in 44 months (~4yrs). Here's the rules:
This schedule is an estimate based on current numbers. Not 100% accurate.
Pay all the minimums.
Pay off a debt. Roll the debt's minimum payment to the next debt.
Give the extra payment only to the debt in line. If the debt is paid off and extra money is leftover, roll it to the next debt until no extra money remains.
 
Tbh, bankruptcy was the best thing we ever did for ourselves. We kept our cars and house, and it gave us the break we desperately needed. Your redit dips, but you can make it up pretty easily. Btw, conventional loans need a 4 year gap after bankruptcy to qualify, FHA needs 2 years. Imo, you could be closer than you think. You just can't fall back into the same patterns. Get ONE credit card and only spend what you have in the bank. So if you'd pay cash for gas, put it on the card (hopefully one with rewards, and set that aside to pay your statement balance). Our credit dipped to the low 500s, but we were close to 700 by the end of that year.
 
I did Chapter 7 bankruptcy. Best thing I did. It knocked my score and pride. Only for a short while. By then, creditors still tried to give me credit because I had no debt. I learned to spend what I make. I learned to live beneath my means. Think how long it would take you to pay it off. Compare that to no credit for a few years before you built up again. My credit is close to 800. But that's just my experience. Also, are you only making min payments? Or are you paying more than the amount? That makes a difference too. If you don't want to do the bankruptcy, I would look into consolidating. Perhaps from a credit union.
 
I’ll be honest: seeing your actual breakdown helps a lot you’re not as stuck as it feels. Most of your balances are sitting in that 26–36% range, so even when you’re paying extra, interest is eating a big portion o it. That’s why it feels like you’re not getting ahead. The good news and I mean this is that this is very workable without going to extremes like bankruptcy. You’re thinking correctly about payoff order but it’s not always just highest interest or smallest balance; it’s how everything works together. If you want, I can help you map out the fastest way to knock this out based on what you posted.
 
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