How do I get out of k credit card debt without ruining my credit?

Personal Finance

I made some really dumb decisions in my early 20s and racked up about ,000 across 4 credit cards. Interest rates are between 22-29% and minimum payments barely cover the interest. I bring home about ,200/month after taxes in Denver. Rent is ,100, car payment , other bills around . I feel like Im drowning. Whats the best strategy to pay this down without destroying my credit score? Should I look into those debt consolidation companies?

Jessica Brown

3 Answers

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Been there, paid off k in credit card debt over 2 years. Heres what worked for me:

Avalanche method - pay minimums on everything, throw all extra money at the highest interest card first. Mathematically saves the most.

Balance transfer - look for 0% APR offers. Even with a 3% fee youre saving thousands in interest. I moved k to a Citi card with 21 months 0%.

Call and ask for lower rates - seriously just call each card and ask. I got one dropped from 26% to 18% just by asking and mentioning I was considering a balance transfer.

DO NOT use debt consolidation companies - most are scams or will wreck your credit. A personal loan from a credit union at lower interest is better if you need to consolidate.

With your numbers you have maybe ,360 left after bills. If you can throw -1000 at debt monthly youll be free in about 2 years.

Rachel Martinez

Paid off k in credit card debt. The key for me was the avalanche method plus a balance transfer card for the highest rate debt. Took 3 years but Im free now. You got this.

Sarah Taylor

Whatever you do dont use those debt consolidation companies that advertise on Instagram. Most are scams. A personal loan from a credit union at lower interest is legit though if you qualify.