I’m 25 and Not Making Enough Money to Pay Off My Debt. – Jackie

“Hi Steve,

I am a 25 yr, who has a big load of student debt and i have debt from two credit cards when i was 20. I only make 20,000 a year so there is no way i can pay if off.

If i have credit card debt from when I was 20, and never touch it yet, what should I do. And what are your thoughts on credit debit help. I have read good and bad things about it. Thanks


mathDear Jackie,

The reality is we have to prioritize your debt repayment approach.

As it stands right now it seems you are making your student loan payments but not making much of a debt in the underlying credit card debt.

If you are just treading water and unable to save then we need to think about intervening in the debt. Otherwise you can focus on increasing your income or reducing your expenses.

I would suspect you are just getting by and unable to save and build up an emergency fund or put money away for retirement now. And now is the most important time since any money you save now in a 401(k) or IRA will grow and grow till you retire.

So just based on what limited information you shared I’d suggest you first read How to Get Out of Debt. The Honest and Unvarnished Truth, How Do I Get Out of Debt Quickly? Change Your Mindset, and The Truth About The Success Rates, Failure Rates and Completion Rates of Credit Counseling, Debt Settlement, and Bankruptcy. They will give you a great overview of what we need to deal with to get you moving in the right direction.

Then use the free How to Get Out of Debt Calculator to review your options.

Once you’ve identified a company you want to work with, then follow my step-by-step guide on what you should look for and expect from a good debt relief company.

See also  My Wife and I Have Been Struggling to Get Out of Debt Ever Since We Got Married. - Ryan

Please post your responses and follow-up messages to me on this in the comments section below.


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.
Damon Day - Pro Debt Coach

Steve Rhode

1 thought on “I’m 25 and Not Making Enough Money to Pay Off My Debt. – Jackie”

  1. Based on your income you probably qualify for income based student loan repayment plan, that may help you lower your payments and free up some cash that you could use to start to pay your credit cards. You Student loan interest rate is most likely at a lower interest rate then your credit cards.


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