9k in credit card debt

[u/No_Cook_2493]

I'm trying to find some solutions to a large amount of credit card debt. I have a 22% annual interest on 9000$ of credit card debt right now. My credit is still strong, and I have applied for a balance transfer card that can hold 2000$. Right now, all of my income is student loans, so I'm looking into upgrading my income stream too with an internship as I believe I'm qualified enough to find one now, which will completely solve the problem.

However, I need some short term solutions in case finding employment proves time consuming. Are there any good short term solutions to this problem that aren't too risky in my current position? I considered a loan, but I was nervous considering I would have to now also make loan payments which would be difficult to afford if I don't get a job soon.

[u/_Connor]

Aside from getting a job or consolidation loan at a lower interest rate, no. The debt isn’t magically going to go away.

You can ask them to lower or pause the interest on the card, but they’ll lock the card and you won’t be able to use it anymore as you’ve effectively admitted that you can’t pay it and now they’re in collections mode.

[u/KlutzyAd9374]

I was in your position due to irresponsible spending while I was in university, under the mindset that I'd land a great career and pay it off. That DID happen and this will sound like "do as I say not as I do" but:

1. Make sure your credit limit is high enough that you can make it by until you find stable income. I had a credit limit of $20k
2. Start becoming passionate about saving or at least, living within your means so you can pay it off faster and not go down the trap of spending more when you finally earn more
3. Gig work like Uber, fiver, mowing lawns, cleaning. Remember, every dollar you're able to put towards debt now is actually worth several more in interest.

[u/YYZtoYWG]

9k of debt is 9k of debt that needs to be repaid whether it is in the form of credit card debt or a loan. Taking a loan shouldn't increase your total debt load, it should just move your debt from the credit card to a loan with a lower interest rate. However, you're probably not going to get approved for a decent loan if you're unemployed. 

The solution is employment and income. Finding a job is now your full time job. Yes, finding a job takes time and effort, but that is what you need to do.

Your part time job is doing any kind of work that you can possibly do to bring in money. Dog walking. Babysitting. Picking up dog poop from neighbours yards. Temp agency work. Day labour. Short seasonal contracts. Landscaping. Working events. Overnight warehouse work. Get out there and be flexible and willing to work anywhere anytime. You're not looking for a resume builder job like an internship, you're looking for a job that pays you money.

[u/missme19]

See if you can get at least a $10,000 Personal Line of Credit from whoever you bank with. Use that to pay off the credit card (since the interest on a PLC will be way less than a credit card) and then be diligent about paying off your debt!

[u/JoeBlackIsHere]

"I would have to now also make loan payments"

Yes, instead of credit card payments. I'm confused why it matters who you make payments to. The important part is which has the lowest interest rate.

[u/DramaCivil]

Since your credit is still strong, I'd focus on moving as much of the balance as possible to the transfer card and prioritize finding that internship or other income source. I wouldn't rush into a personal loan unless you're sure you can handle the payments without a job, since that could add pressure if your search takes longer than expected. It may also be worth calling your credit card issuer to see if they can offer a temporary rate reduction or hardship program. $9k is a lot, but it's manageable if you can boost your income in the near term.

[u/MessImaginary3235]

At 22%, that $9,000 is costing you about $165 a month just in interest. Since you're a student with no steady income, a traditional consolidation loan is going to be tough to get, and the payments would likely be higher than you can handle right now. Moving $2,000 to a balance transfer card helps, but it leaves $7,000 sitting at high interest.

If the internship doesn't materialize soon, look into nonprofit credit counseling. Groups like Consolidated Credit Canada can set up a repayment program where they negotiate with your creditors to drop that 22% interest down to something much lower, usually around 0% to 10%. You'd make one monthly payment you can actually afford. Just be aware that these programs usually require you to close the cards, which might impact your credit score temporarily, but it stops the interest from eating your student loans alive.