Our Debt Story: How We Found Ourselves $35,000 In Debt (part 1) (2024)

FAQs

How to get out of 35k debt? ›

You can find all of your debts by checking your credit reports, going through old bills and mail and contacting known creditors directly to ask for balance statements.

A variety of issues can cause debt. Some causes may be the result of expensive life events, such as having children or moving to a new house, while others may stem from poor money management or failure to meet payments on time. Here are some of the more common causes of debt people face in their everyday lives.

Get a Personal Loan To Consolidate Debt

“If your debt (or much of it) is high-interest credit card debt, a personal loan may offer a rate lower than on your credit cards,” Fox said. “The idea is to consolidate your other debts into one with a lower rate, and pay that one loan off faster.

If you can afford to pay off your debt during the promotional APR period, a balance transfer card may be your best bet. For example, with $5,000 of debt, a six-month intro APR balance transfer card would allow you to pay off your debt interest-free with $833.33/month payments.

The average FICO Score has steadily risen over the years and hit an all-time high of 718 in October 2023. A 760 is considered “very good” credit, along with anything above 739.

Approximately 30% of the score is based on outstanding debt. A good guide is to keep your credit card balances at 25% or less of their credit limits. Approximately 15% of the score is based on the length of time credit has existed.

It is not uncommon today for people to be pursued by debt collectors for money they don't owe. This occurs for several reasons: the original creditor may have made an accounting error, you may be a victim of identity theft, or the creditor may have found the wrong person with a similar name.

Can I get debt written off? ›

Creditors can agree to a reduced payment over a limited period, with the rest of the balance written off in some circ*mstances. This is often done using legal procedures but might be agreed by an individual creditor on your request.

There's a strong link between debt and poor mental health. People with debt are more likely to face common mental health issues, such as prolonged stress, depression, and anxiety. Debt can affect your physical well-being, too. This is especially true if the stigma of debt is keeping you from asking for help.

Get in touch with a debt relief service

And, debt relief services typically help you in one of two ways: debt management or debt forgiveness. If you choose a debt management program, experts will typically try to negotiate your interest rates and payment terms with your lenders on your behalf.

At that level of debt, you're likely paying hundreds each month -- if not a thousand dollars or more -- just to meet interest payments. And that's not even putting money toward the principal, the heart that's generating more debt. Big debts call for big measures.

Building up your savings each month as you pay down debt ensures you'll have funds on hand to cover unplanned expenses that would otherwise put you deeper into debt.

Options For Paying Off Substantial Credit Card Debt. There are a number of strategies to pay off large amounts of credit card debt. They include personal loans, 0% APR balance transfer cards, debt settlement, bankruptcy, credit counseling and debt management plans. You may be able to use more than one of these options.

If you only make the minimum payment each month, it will take about 460 months, or about 38 years, to pay off that $30,000 balance. And, you'll pay a staggering $54,359.80 in interest charges along the way, which means the interest you pay will be well above the original principal balance you started with.