- February 16, 2024
- Posted by: legaleseblogger
- Category: Related News
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Seeking Guidance for Paying Down $33k Credit Card Debt
Asking for Advice on How to Tackle My Credit Card Debt
I’ve accumulated $33k in credit card debt and I’m looking for guidance on how to pay it down. I need advice on where to focus my attention and whether I should consider selling off my investments to pay off high-interest debt.
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****** just grabbed a
Wipe out those savings and pay off the credit cards.  The credit cards charge a higher interest than what you make in the savings accounts. 
Youve made some odd decisions
1. Stop investing and pay off your credit cards. ItÔÇÖs 22% interest a year. You ainÔÇÖt making that back easily with stocks. You mention 18% over 5 years – 3% a year?
2. Use your savings and bonus to pay off your credit cards asap. Maybe use your stocks if you have to.
3. Why do you have two cars? One car was confusing already
4. Address your spending problem. Racking up $33K in credit card debt needs to solved before you can move forward. Your budget doesnÔÇÖt seem that bad so thereÔÇÖs something youÔÇÖre not addressing.
5. Really think about why you have crypto. You donÔÇÖt have much invested and you have a large chunk in speculative funds.
.
The investments you have should be liquidated for a clean slate, be debt free and start investing again.
You have internet – why cable ?
Streaming service too ? So why cable try to reduce these
Drive the paid off car and sell the one you are paying got
Or get a side hustle to make more money and pay off debt in chunks one at a time.
Sell everything in TFSA, personal investments, crypto and pay down credit cards starting with highest interest rate. Once you have no CC debt, you can think about investing. Right now paying down your credit card is equivalent to earning a risk-free 20% return
You going to have to bite the bullet, sell your investments and pay those CC off.
22% interest is killer.
Once done, then you can come back to investing.
Best of luck.
Agreed with poster above. You really do make some crazy dumb choices. Why did you take out a car loan with that much credit card debt? It seems stupid and illogical. You canÔÇÖt afford it – why ?
Sell your car. Use your savings and pay off your debt. Otherwise youÔÇÖre screwed. YouÔÇÖre spending far too much money with only 800 bucks left ? For food, gas not sure how
> donÔÇÖt want to do the obvious thing that I feel everyone will say is sell my car. How do I pay this shit down?
Well, this seems like you’re resistant to change and want to keep doing what you’ve been doing. Has that been working for you? Car debt though isn’t high interest so it is a lower priority but 2 cars?
Liquidate TFSA, Crypto, Company stocks and pay off as much debt as possible. Redirect any “investments” and spare money into clearing any debts ~6% or higher. You’ll be able to rebuild the investments pretty quickly once you get rid of those debt anchors just holding you back.
As everyone here has said, investing makes no sense in your situation. For every $100 you put in the bucket to grow at 8% ($8) per year, visa is taking out $22 per year. But probably way more because the problem is compounding. Until you get rid of them.. Then start again. You’ll be surprised how much money you have. But don’t use credit cards again after this.
You can quite literally lay off all your CC debt by using your stock and investments without touching the rrsps
Stop gambling. Bitcoin, company stock, individual stock picks are all gambling, not investments.
Also, you think 18% over 5 years is good? That’s less than 4% per year when stocks historically gain 7%. Not to mention your credit card debt is costing you 22% per year.
You could have a safe, *guaranteed* return of 22% annually by simply liquidating 30k of your investments to pay off your credit card debt.
Give yourself a clean slate. Take your savings and throw it at your debt. Otherwise your debt will just snowball out of control at 22%. At the very least, pause the $375 monthly contribution and throw it at your credit cards. Thats a really spicy car payment ƒÿ¼.
> I am just bewildered looking at all of this and donÔÇÖt know what my best move should be.
Finances are actually surprisingly simple.
You have debt that costs x$ per year and you have investments that make y$ per year. If the debt costs more than your investments make, sell the investments and pay the debt. Pay down highest cost debt (highest %) first. Simple.
Then look at your expenses to income. Expenses > income = more debt. Cut expenses.
Also why do you have 2 cars?! You need a lifestyle adjustment.
This guy said heÔÇÖs 30k in cc debt with over 40k in savings and investments. IÔÇÖd clear everything except for the rrsp. BTC just went up recently. Should have sold it earlier this week. You should be fine.
Your phone bill can be cut in half with how cheap data plans are getting with decent gb. IÔÇÖd cut either some streaming services or the cable if you donÔÇÖt watch them often or if at all.
You should be fine man donÔÇÖt stress it out.
Good advice here. Get a second job (cash if possible). You’ll make extra money and more importantly, you won’t be spending because you’ll have no time. Do that for 6 months and you’ll be out of debt.
Sell off everything and pay debt. Take Bonus and pay debt.
Why donÔÇÖt you want to sell your car? TheyÔÇÖd 40 % of your debt.
Your savings and investments mean absolutely nothing with the interest on your debt. Stop investing and pay off ALL of the debt, then start investing again. Get rid of the credit cards when youÔÇÖve paid off the debt. Once youÔÇÖve done that, seek advice before ever taking on new debt.
YouÔÇÖre extremely lucky to be in a position right now that you can attempt to tackle this – but if you put it off for even a couple of months that could drastically change. Good luck.
ThereÔÇÖs no point in having savings with this much debt. Use one to eliminate the other, then start over. And by start over, I literally mean cut up your credit cards.
dude sell the crypto lmao and the company stock if its not in a registered account and just pay off the 22% cards.
then you can either sell more for your 12%mc or just spend the next months chipping away at it, Honestly your car % isn’t even that bad
Sell all your stock and investments and pay off your credit card debt! You my friend are broke af, donÔÇÖt even think about investments until you have that 22% interest taken care of
What car do you drive?
You arenÔÇÖt doing anything to pay down your cards. So you need to change what you would pay off per pay Cheque. Your CC payments vs your savings payments are way off kilter.
8k from Bonus.
11.6k TFSA
5.8k Crypto
ThatÔÇÖs a massive dent off your credit card and can leave your stocks in place. Now. You have to lower your savings to 0 and put that $375 per pay onto the remaining amount of your CC debt until itÔÇÖs zero. At that point immediately crank up the investments back to $375.
All of this is moot if you canÔÇÖt change your spending habits. Learn to budget etc.
Absolutely amazing how irresponsible people can be with money ..
Sell the car
Get financially literate. Read some books.
Sell body
Get iptv. May not be legal but $16/month is worth it.
Use your investments to pay off your credit card debt ASAP. The high interest rates will kill you. Sell your car(s) and buy a cheap civic or something, consider canceling your insurance for one vehicle. I would pay off the student loan last as the interest rate is so low. Don’t forget the cc debts can have severe impacts on your credit rating.
Ok, im new (21M) and don’t want to judge anything, Why does one spend that he knows he can’t afford on CC? like I have this much or will have this much by this month (max), so I’ll get this.. Like what’s the intuition behind it?
AND
21.4k @ 22% ? bro wtf.. u need to get it out really quick, I can see it being a death trap with my minimal knowledge in finances… you are paying 5k in interest?? (How do i become a bank?)
Pay off your credit cards?
Pull money out of savings, everything except the rrsp unless you have to, sell the BTC and pay off the highest interest cards first. Stop saving and spending money on any “wants” until all debts are paid.
You should MAKE interest, not PAY it. Make that your mantra.
This seems like a no brainer. All of your debts aside from student loans and your car (so your credit cards) are high interest. Any and all of your savings/investments I highly doubt are making 22% return.
Clear out your investments and savings (do however makes most sense to you) and pay off your debts in full.
That or sell your car.
As others have stated, use savings and investments to pay off all the debt, you have more than enough.
Stay away from credit cards.
Get rid of the car with payments if you already have a paid off car. I know you donÔÇÖt want to, but you really canÔÇÖt afford it.
Get rid of cable if you already have internet and various streaming services.
Shop around for better deals on internet, and phone plans. TekSavvy, and CikTelecom have good deals on internet. Fido and freedom have cheap phone plans for under $40/month.
After paying everything off and getting your budget under control, then you can reconsider getting the car again. Otherwise, this debt will never be paid off and it will just keep piling up
Keep the car. YouÔÇÖll need it to get to work.┬á
Pay off all the debts with annual interest over 2%. Car investment seem like a bad choice as you have one car already but, pay that off from your savings or any funds.
BTC is a good investment ONLY if after brokerage fees youÔÇÖre getting atleast 500- 1000
Use your BONUS to pay off debts with high interest should be your priority. You can save later or youÔÇÖre just paying and loosing.
If you continue living as you have been, without a significant inheritance you will be dirt poor when you retire.
It’s ultimately up to you to decide if you want to change here. Your behaviour suggests your a bit of an adrenaline junkie. I highly recommend finding alternative places to satiate that aspect of your personality than your finances.
I rarely say this but you probably need a heavy dose of Dave Ramsay and get rid of your credit cards if you can’t change how you have been using them.
**Here are the facts:**
You don’t have savings/investments, net you’re actually going backwards, fast.
You can afford half the car you’re currently paying into.
**First** thing I would do is sell the cryptocurrency and immediately pay off, cancel & cut up your VISA. Yay you’re first success 🙂
**Second** is to liquidate the company stock & TFSA. I would take this money & pay off the other two credit cards. Cancel the credit cards and cut them up.
With whatever I had left, I would put it towards a regular high interest savings account as an emergency fund. This should stay at around 3 months expenses which would be $9k for a rainy day.
**Third**. I would repeat this mantra in the mirror to myself every day until I sell the car. “You know what’s even cooler than having a brand new car? Having more than wonderbread and mustard to eat when i’m 67.” When I sold the car, bought a new one that costs half the amount, I would drive that thing with pride, knowing that I just saved my future self from years of torment.
**Fourth**, I start investing the $700 (what you saved on the car, & what you’re already saving). This should really all go into your RRSP. Low cost index funds, no gambling on individual stocks, cryptocurrencies, or high management fee funds (every 1% eats about 20% of your total potential wealth over a lifetime).
After about 6 months of doing well I would consider getting a new credit card that has a substantially lower limit (1-2k). Congrats, you just saved yourself.
I donÔÇÖt think you realize how dire this is. You need to wipe those savings and aggressively pay this off.
You donÔÇÖt earn nearly enough money to budget the way you are currently.
I highly recommend getting some guidance from a certified financial planner. Make a plan on how to tackle the debt.
I would personally recommend keeping at least 3 months of living expenses on hand in savings account or tfsa, in case of an emergency. Beyond that, pay off as much debt as possible. Start with the one with the highest interest.
Your car payment is ridiculous.
Then again how you got into this is ridiculous. IÔÇÖve never even carried $1000 in credit card debt or line of credit debt, only mortgage. I have no grasp of how you got here.
You cannot afford your car and you are RENTING, and you have no savings for retirement
IÔÇÖm going to be honest and not nice. You are fucking this up badly in my opinion.
1. Sell all your meager investments and get out of this debt.
2. You donÔÇÖt need this expensive car and you cannot afford it. Sell it and go get a cheap used one with your BTC.
3. Stop living your life lookinÔÇÖ like a cool guy living on debt.
4. Start saving again, as you may want a house or a partner one day.
5. Start increasing your skills so you can make more money if you wanna blow $640 a month on a car when you only pay $1350 on rent (which is a good price by the way and you did half decent there unless your place is a tiny shit hole).
6. You did the right thing asking for help. Sorry I was an a-hole about it.
You didn’t mention anything about the car and its specs. It won’t matter either way cause nowadays you WILL have a lot of trouble selling it. Very very few have liquid cash available for these types of purchases. Most will purchase from dealer on credit. It will sit on marketplace for a very very long time, bit if you do sell prepare to sell for a loss. So that pretty much eliminates the idea of selling your car. No point.
I’m sorry but why do you have 2 vehicles? If one is paid off then selling the second one would automatically give you an extra $640 each month to pay off those credit cards.
Definitely take some of that savings and use it to pay off the debts you owe. The interest rates of the credit cards are going to negate any investment gains.
You really need to get this under control.
Some other ideas I had were to see if you could transfer somebody that cc debt onto the car loan (if you don’t sell it). This will help you lower the interest rate, allowing you to pay it down faster.
Take the full bonus and throw it at your cc debt you can pay off the $2k and bring down the $11k cc. Then take savings and pay off the $11k cc and pay down the remaining cc.
How do you have any investments or savings with 33k debt. Sell stocks and crypto and pay thouse CCs off.
Sell your car and get rid of ad much of your car loan as possible. Use your savings to wipe out the rest. That is a lot of debt on your cc which will balloon very quickly at 19% interest rates.
Get rid of it immediately.
Carrying a modest balance on your cc between statements is once thing (assuming your statement amount is paid in full), but what you have going on is very dangerous.