I started out in college with the only debt being my college loan which was manageable. Then it was suggested that I get a credit card while in college so that I could start to establish some credit. Well I got a credit card, then I got another credit card, and another, now I have high credit card debt. Using the credit card was like an addiction.
I have high credit card debt on top of my monthly utility bills, how do I lower my credit card debt while still paying my monthly utility bills. I am basically living pay check to pay check. Here are my bills including my wife’s.
Credit Card 1: $16,903.06
Credit Card 2: $5,933.40
Credit Card 3: $12,929.73
Credit Card 4: $10,938.64
Credit Card 5: $2,446.17
Credit Card 6: $1,133.38
Loan 1: $19,504
Loan 2: $4,160
Loan 3: $5,629
Loan 4: $3,937
Utility 1: $198.20
Utility 2: $224.00
Utility 3: $329.00
Utility 4: 126.00
The current issue is that your debt to income ratio is all out of whack. Basically you owe more in monthly obligations that your income can support.
There are a number of free get out of debt calculators you can use to start to dig out of this hole. But I suspect that you are so close to the edge now that there is little money to devote towards extra debt repayment payments.
Before I give you a comprehensive answer I’d like for you to post an update in the comments below with some additional information.
- Over the minimum payments, how much extra money do you have on a regular monthly basis to use for debt repayment?
- Do you have a savings account or emergency fund you can fall back on in case you have a financial emergency?
- Are you and your wife pooling your income and debt or is repayment dependent on your income alone?