I went from zero debt in 2022 to $9,000 in debt currently. I had two medical emergencies and a surgery in 2023 which led to $7,000 in medical debt that I’ve paid down to $3,500 with a payment plan. But in the meantime, my health insurance went up $100 a month and a medication I need is costing me $320 a month. Unfortunately, I’ve had to lean on my credit card these last 2 years, and it has crept up to $6,000. I’m trying hard to pay it off, but I’m barely hitting my minimum payments. I make $68,000 a year between my job and I rent out a room in my house on Airbnb for some extra income. I live on my own. I love my job, so I really don’t want to find something different, and I’m not sure I can. The only way I can see myself getting out of this is a second job to help pay down. Any advice would be appreciated.
Consider a balance transfer to a 0% card and pay what you can. Focus on making more money and cutting expenses where possible. It will take time.
Hartley said:
Consider a balance transfer to a 0% card and pay what you can. Focus on making more money and cutting expenses where possible. It will take time.
Which card? I need one ASAP! I’m getting royally screwed beyond repair.
@Ashwin
There are a lot of options. Start with needwallet.com to check them out. Discover, Chase, Citi, and even some smaller banks offer them. Just keep in mind it’s credit dependent.
If you’re part of a credit union, you might want to start there. They often have good options for balance transfers.
If you’re only paying minimums, you’re stuck. Call your insurance and ask for a cheaper plan. See if your doctor can switch you to a cheaper medication or if there’s a discount available. For Airbnb, consider raising your rates, adding a cleaning fee, or pushing for longer stays. Also, try a 0% APR balance transfer to stop interest. If you don’t cut costs or increase income, the debt won’t go away.
Finding a 0% transfer sounds like a good idea. I’ve been hosting on Airbnb for 7 years and feel like I’m pretty maxed out. Fortunately, I do have a big booking in May that will get me about $1,500 for a weekend, so I’ll definitely put that towards the debt. I’m on a government health insurance plan and can’t find anything cheaper without a crazy high deductible. It feels like a scam paying $500 a month with a $9,000 deductible.
The high deductibles can be brutal. If you haven’t had time to save in an HSA to cover that deductible, it really hurts. Regarding your medication, have you checked Mark Cuban’s site, Costplusdrugs? They might have your medication at a cheaper cost. About the 0% credit cards, they’re great for transferring balances if you have several cards. Just make sure the limit on the 0% card is enough to pay off at least one of your existing cards.
You’re already taking huge steps towards getting this debt gone. With your debts, you can focus on it using either the avalanche method (paying off the highest interest first) or the snowball method (paying off the smallest debts first). Since the medical debt is on a payment plan, I would focus on the credit card debt. A second job could help, too. Can you charge more for the Airbnb room or consider a short-term lease for guaranteed monthly rent?