s.hasan546

Exactly. The problem isn't having a credit card, it's not using them properly. If I didn't use credit cards I would lose out on $2-3,000 worth of points/perks that I get with all my credits cards between personal/business expenses.

Analyze your daily expenses and start cutting back. I cook my own meals for health reason and even though I buy expensive stuff like nice steaks; etc, I still spend much less than people who go out to eat. I also make my own coffee most of the time, saves a ton of money & my french press just makes better coffee.

But I wouldn't (personally) cut back from experiences that are once in awhile. Going out with friends every now & than, weddings; etc, are worth it IMHO. Those experiences you don't get back. The fun/experiences I had in college with my friends/acquaintances (who now are a solid business network) were easily worth the $$$/debt I incurred. I still get offers from acquaintances that I drank with just b.c of our pseudo friendship/experiences together. Sometimes it pays to spend some $. Don't be a cheap ass either. Especially in NYC, you'll realize the people that you party with can very much be the person interviewing you tomorrow or getting you in the door. I got a couple of my friends places at well paying jobs ($80-$120k) just through my network.

Mr White

Sell the S and mods, buy a beater, keep $1,000 on reserve for any repairs and use remaining amount towards debt, pick up 2nd job and live the frugal life for awhile. It won't take too long

fav60589

I was in a similar situation. About the same amount of debt, but only making $40k a year in PA. I put myself on a "money diet" I left myself enough money each week to fill my tank and then $75 in spending money. I know that's peanuts in NYC, but the numbers are relative. I started packing lunch and cutting out coffee entirely. I saved myself $300 a month just by doing that.

Just doing those things and throwing every extra penny on CCs I managed to knock all of my debt away in a year. Except my S2000 payment, but that's only 1.9% so it's not a huge concern.

You really need to get yourself on a strict plan and stick to it. It TOTALLY blows, but once it's cleared out it's the best feeling ever. Then if you can maintain that lifestyle and start watching your bank account fill up. OH MAN. That house will look more and more realistic each paycheck.

UC Gordon

Do it, especially in NYC. Hate to say it, but if I needed the money I would sell my S2000. It is very easy to replace, there are still a lot of good, low mileage cars out there.

honda two thousand

If you are in an office or can listen to stuff during work, I recommend checking out Dave Ramsey. He has a radio show and goes over getting out of debt. He does sell CDs and other stuff but you can pick up most of the information listening to the radio show.

I agree Terdburgler with the snowball method by paying the lowest balances first. When those bills start dropping off, getting fully out of debt will feel within reach.

Like others have said, you have to reevaluate your current expenses. It sucks (temporarily) but being debt free is awesome.

Best of luck and keep us updated.

mcesar84

Do you have any other obligation such as rent to parents? How much is your car payment and insurance?

I made about the same amount when I still lived at home. I limited my spending to about $1,500 a month max, if not less. My net income was over 3k. I was socking away a minimum of $1,500 per month for about 3 years.

Make yourself a budget. Specifically, set a limit for what you're going to be spending on food and entertainment. Personally, I spend under $10 a day on average for food, including the morning coffee and grocery store purchases. If you stick to a plan you can have that debt paid off in 12-18 months and start putting the savings towards a downpayment on a house.

A lot of credit cards are offering zero percent on balance transfers for 12+ months right now. There's usually a 3% transfer fee added to the principal, but it's a heck of a lot better than the 15-25% typical rate. The only issue is that it is very unlikely that you would be approved for a 20k limit. Another option would be to apply for a line of credit with your bank. I work at a bank and those rates typically range from 9-12%. PM me anytime if you need any advice.

chrisaltima

Hey guys here are some updates:

1. I picked up a second job as relief doorman in my building. I am getting about 5 shifts a month which will net me about $600 extra a month + small tips + Christmas tips.
2. I dropped Family Financial as a whole. ( like someone up top said I was bascially throwing $50 at them a month for nothing ) So now I will be paying my own bills and putting that $50.00 towards one of the cards.
3. Like MCeaser said I made an attempt to get an unsecured personal loan for $15K but I was declined.
4. I am going to try and transfer my higher store credit card to my B of A card since they are offering 9% interest on balance transfer. Sure beats the 25.5% bloomingdales is charging. Also, this will allow me to make one payment and save me a little extra work on the back end.

I will keep you guys posted and let you know how things are going. Looks like I am going to get on the road to becoming debt free.

As always, thank you to everyone for your help and valuable input !!

tbp5022

Awesome! Keep up the great work man it sounds like you're on your way.

JayJones

Like others said, it takes being frugal for 6-12 months. I started this year in April 46k in debt, I'm now at 33k, and by April next year I'll only have car debt of 15k. I've learned you don't always have to change all of your habits, just be smarter about it. Spend less money while you're spending money if that makes any sense. If I know I'll buy something a few times in a week, I'll buy in bulk.

Definitely don't bite into spending a ton of money on your S2K (until bills are paid). I had 18" polished deep dish wheels on a perfect drop last month, but I realized that's not helping me get out of debt. I got wheel spacers, and painted my stock wheels and surprisingly I'm just as happy and I was able to put $2,000 toward my debt.

Keep up the hard work and you'll get there.

chrisaltima

Thanks for the kind words...things are getting better. I am really working hard toward knocking out my smaller CC ($1K) and moving on to the second one now, which is about $3.8K. I hope to be paying only my B of A CC and used car loan by next summer.