@Ainsley
The issue isn’t the loan itself—it’s the behavior. If the habits that led to the $30k debt don’t change, you could end up back in the same spot with a cleared credit card and more debt. Getting a LOC and closing the credit card could work, but if spending habits don’t change, it’s going to be a repeat cycle.
Morgan said:
@Fay
No, don’t go the consolidation route. Focus on paying this off as quickly as possible.
Consolidation loans just lump all the debt into one spot. It’s not a magical fix.
Never pay just the minimum—most of that goes to interest. I always double my payments to make a real dent in the balance.
If you’ve bought expensive stuff, you might want to sell it and rebuy it later once you’re out of debt.
I’ve been in your shoes… mind if I ask how old you are?
Try calling your credit card company to ask if they’ll move you to a lower interest rate card. And maybe think about picking up a second job to throw extra money at the debt. You could pay it off faster that way.
You should talk to your bank or credit union about getting a line of credit. Also, try using only a debit card for now, so you don’t rack up more credit card debt while you’re paying this off.
Find a credit card offering a balance transfer deal with a lower interest rate or 0% for a while, and move your balance over to that. Meanwhile, consider picking up a side hustle or a second job to bring in more income.
With $3,000 a month income, $1,000 toward the debt is a reasonable amount to put toward it. This seems more like an income issue than a spending issue. Everyone makes mistakes, so don’t beat yourself up. Just focus on moving forward and paying it off.
Consider getting a part-time job and putting all that income toward the debt on top of your regular payments. Keeping busy working means less time for spending, and you could be debt-free in 12 to 18 months if you stay focused.
See if your bank will give you a personal line of credit. Even if you only get $10k, that’s a start, and the interest is lower than what you’re paying on a credit card. Set up automatic payments and treat it like money you never had.
In a couple of years, you can either still be dealing with this debt or you could be free of it—it’s your choice.
I was in a similar situation years ago. I set up automatic payments, and now I’m debt-free and have even saved up for a small investment portfolio. It’s doable!
Owing almost a year’s salary can feel overwhelming, but you’ve got this. Keep making those $1,000 payments, and try to find ways to increase your income.