Get out of debt brehs

[Yinny]

Down bad, I’m ngl I have a shytton of debt, knocking it down but it’s still a lot medical and cc

Wild how expenses come fast and furious-earlier this year I had to replace a window and get brand new tires on top of business as usual. I’ve forced myself to become more disciplined about spending less and paying off debts first, using debit and not credit and other stuff. So far doing fine but still can be better.

 

[capblk]

Dental work and car issues slowed me down as far as paying these cards. But at the same time it eliminated the amount of stress/pain I had. I don't even carry a credit card anymore, just debit and cash.

Only "luxuries" I will continue to pay for are haircuts (regular shop $40), AMC A-List (watch a bunch of movies in any format for $27/mo) and gym (Blink $16). Just to keep my spirits up. Don't really eat out much or drink like I used to. I noticed that when I cut everything out I just end up splurging bad after a few months. Progress has been slow but at least I don't use the cards anymore.

 

[BigMan]

paid off all wedding debt
next steps are to get my retirement on track and get my savings back up
student loans aint' getting paid but fukk it

 

[winb83]

Dental work and car issues slowed me down as far as paying these cards. But at the same time it eliminated the amount of stress/pain I had. I don't even carry a credit card anymore, just debit and cash.

Only "luxuries" I will continue to pay for are haircuts (regular shop $40), AMC A-List (watch a bunch of movies in any format for $27/mo) and gym (Blink $16). Just to keep my spirits up. Don't really eat out much or drink like I used to. I noticed that when I cut everything out I just end up splurging bad after a few months. Progress has been slow but at least I don't use the cards anymore.

I would not suggest using a debit card. A credit card offers a layer of protection because if compromised it’s not your money while even if you get your money back from a debit card you were still out of that money until it’s returned.

 

[Bboystyle]

Breh i feel ya on this. I was bad with money (still kind of am) and i didnt give a shyt about my credit at age 18. My whole mentality was that i get approved for something and i put it on credit,i dont pay it and all it does is ruin my credit score like i gave two shyts...Im getting free shyt..Little did i know


Now thanks to the 7 year rule my credit is clean and i have 3 active accounts all with a grade A in payment history and credit utilization(the two MAJOR things that effect your score) I bet half ya'll dont even know what credit utilization is in terms of affecting your score. Basically u wanna keep your balance below 30% of your total credit. So for instance,if u have a credit card thats $1,000, try to keep the balance at $700 or below when your payment date is due. Reason being is because companies want to know that u dont rely on their credit to live as most people who do are high risk of not paying back.

Imma help the brehs in here who are trying to restore their credit. i did mine in little as 8 months. Went from 625 to 705 which isn't great but its not bad.

here's a starting point to establish credit.

Either get a secured credit card or do Fingerhut. Yes the items are more expensive at Fingerhut then what u can get at wal mart but in the long run,it's worth paying extra to build your credit.


Those two things help me out alot and now i get offers everyday and it feels

this some horrible advice from the old me

discredit everything I said here, especially the 30% utilization credit myth.

 

[Bboystyle]

I got myself into a little hole but i should be out of it by May. I have a personal loan at 3k and about 7 cards to pay off. About 8k in debt right now. Once i get that settled, i should be straight for the remainder of the year. Had a down year in 2022 so hopefully this is the bounce back year.

finally cleared all this shyt up this past year! Took all my collections off my report by pay for delete.. sent goodwill letters to all the charge offs i had that i paid in full(a few of them worked). And now im once again debt free! only have a car note that is $474 a month. Gonna pay this bytch off in the next 2 years.

 

[Atlrocafella]

$140 until this BestBuy Card is done. That’ll be another $60 saved in monthly expenses.

 

[phcitywarrior]

EOY Bonus payment comes next week Thursday and I’ll be 100% out the hole on Friday

I’ve gotten a better grip with my finances and cash flow so I’m NEVER getting back in CC debt (even if my balances were never that big to begin with)

All that income I was using for debt payoffs and paying the IRS will be going straight to my brokerage and savings accounts

I can already feel the weight off my back being lifted

My financial outlook for 2026 is very positive. This time next year mandem gonna be feasting

 

[Insensitive]

I'm two - three years a way from that!
Congratulations breh!!!

 

[jwonder]

I really stress leaving credit cards alone.. That shyt is witch craft. You blink and you spent thousand. If you want things now, but don't have the money I suggest using Affirm or Klarna. The interest is NOWHERE as high has the credit cards.

Overall the best option is to just save money and put it in investments, then pay to get what you want. That's not a common scenario though. I mean I really get it, sometimes I want shyt now.

 

[Bboystyle]

I really stress leaving credit cards alone.. That shyt is witch craft. You blink and you spent thousand. If you want things now, but don't have the money I suggest using Affirm or Klarna. The interest is NOWHERE as high has the credit cards.

Overall the best option is to just save money and put it in investments, then pay to get what you want. That's not a common scenario though. I mean I really get it, sometimes I want shyt now.

Problem is that Affirm starting reporting to credit bureaus back in May of this year and is considered a CFA(consumer finance account). CFAs are bad for your credit profile as they are considered last resort or bottom of the barrel loaning. They can effect your fico score by 15 to 20 points for the whole 10 years its on your profile and lenders will see those CFAs on your report opened or closed.

 

[phcitywarrior]

They can effect your fico score by 15 to 20 points for the whole 10 years its on your profile and lenders will see those CFAs on your report opened or closed.

I always say this, you learn something new everyday. I’d imagine in the grand scheme of things it shouldn’t be relevant. An 840 vs 820 will still get the best rates even if the person with 820 had a number of CFAs on their account.

Main thing should be payment history and paying on time.

The whole credit optimization is really a racket. Outside of buying a home and a car, most people don’t really need a credit score on a day to day.

 

[winb83]

I really stress leaving credit cards alone.. That shyt is witch craft. You blink and you spent thousand. If you want things now, but don't have the money I suggest using Affirm or Klarna. The interest is NOWHERE as high has the credit cards.

Overall the best option is to just save money and put it in investments, then pay to get what you want. That's not a common scenario though. I mean I really get it, sometimes I want shyt now.

I only use credit cards. Everything I buy I want cash back on.

The real move to make is don't buy anything you don't have the liquid cash to pay for at the time of purchase. The only exception is a house or business expenses.

That goes for a car too. If your down-payment (+ trade in) and the liquid cash you have isn't enough to wipe out the entire car balance don't buy it.

Debt isn't something to be used for living beyond your means because at some point the debt comes due or the interest will crush you.

 

[CopiousX]

Problem is that Affirm starting reporting to credit bureaus back in May of this year and is considered a CFA(consumer finance account). CFAs are bad for your credit profile as they are considered last resort or bottom of the barrel loaning. They can effect your fico score by 15 to 20 points for the whole 10 years its on your profile and lenders will see those CFAs on your report opened or closed.

Are you sure? I ordered a one wheel 7 years ago using klarna and it's not on my reports.

 

[Bboystyle]

Are you sure? I ordered a one wheel 7 years ago using klarna and it's not on my reports.

Affirm breh...affirm


And they just started reporting may of this year