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Getting out of debt can be incredibly challenging. One person took to the internet to ask for financial advice. They were living in an expensive city where they incurred $30k of debt. Even though they got a better-paying job, they feel as though they are only breaking even and can’t climb out of debt. Here are some of the suggestions people offered to pay off debt.

1. 0% Balance Transfers

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Someone asked, ” Are any cards offering 0% balance transfer APRs? You need to get the interest down and push some money onto the credit cards. It will be hard when you are accruing $8,000 in interest every year.”

2. Cut Out Everything

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“If you can make all your meals from scratch and cut everything extra out of your budget, every little bit helps. Dissect all your spending habits because the next few years will be critical,” someone suggested.

3. Get a Personal Loan

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“Another alternative would be a personal loan from a credit union at a low-ish interest rate, but it might be hard to qualify,” someone said.

4. Cash is Key

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A person said, “Step 1 is probably to stop using credit cards entirely and go all cash. You need to fix the habit of putting stuff on cards.”

5. Sell Assets

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“What assets do you have? Can you sell a car, buy a cheaper one, and put the rest into debt? Do you have anything else you can sell for appreciable amounts of cash?” someone questioned.

6. Pay the Minimum

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“There’s no quick solution here. Pay the minimums on all cards. For the card with the highest APR, allocate everything to that and draw it down as quickly as possible. Then do the same thing with whatever card is left with the highest APR. Rinse & repeat,” someone said.

7. Chapter 7

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One user shared, “I was in almost this exact scenario when it comes to the debt-to-income ratio. I ended up filing chapter 7. It was a fantastic decision.”

8. Build an Emergency Buffer

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One person suggested, “Build an emergency buffer of $1,000 so you can handle unexpected emergencies without relying on the credit card. Do it fast.”

9. Freeze the Cards

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“Freeze your credit cards. Drop them into the bottom of a water-filled Tupperware and freeze them into a block of ice. Make it hard to go back to your credit cards. If you lack discipline, go hard and just cut your cards up instead,” someone suggested.

10. Budget Your Expenses

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“Budget out your expenses into cash-stuffed envelopes. When you run out of money, you run out of money—no going back to your credit cards. Seeing money physically move from envelope to envelope when you overspend a budget category is sobering,” a user said.

11. Start Small

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“Pay off the smallest balances first, then roll the cumulative payment up to the next biggest debt. Yes, it’s slower and not mathematically optimal versus paying down your highest interest balances first, but you need the PSYCHOLOGICAL win early on,” someone said.

12. Eliminate Housing Expenses

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A user said, “Try to limit or eliminate your housing expense, whether moving in with fam, getting roommates, or getting a job in an industry that provides housing discounts.”

13. Side Hustle

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“It’s hard with a full-time job. I have done eBay on the side for years. Then all profit goes towards credit cards,” someone said.

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How to Save More Money This Year

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Inspired by this thread – photos for illustrative purposes only.

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