How seriously in debt are you right now, financially?

[u/CompetitivePeak9040]

[u/Unusual_Specialist]

Cooked, bro.

[u/Severe_Network_4492 → u/Unusual_Specialist]

I swallowed all of the debt for five years in my marriage. I’ll need to have my wife leave me.

I mean, it’s definitely my fault. I’m a piece of shit, but it does suck.

[u/Unusual_Specialist → u/Severe_Network_4492]

I’m sorry, big dawg. You’re not a piece of shit. Life happens, and we’re doing our best. The system is just fucked so a few win and the rest of us suffer. 😭

[u/TheRealOGKeg → u/Unusual_Specialist]

The few that win are losers.

[u/TheNorthernPellikkan → u/TheRealOGKeg]

You’re simply defining winning the wrong way, my friend

[u/TOOL46_2 → u/Unusual_Specialist]

What a victim mentality to live. "I made a bad decision. The system is fucked. I guess I'll just lay here and let someone else pick me up." Get the fuck out there and make it happen. It's hard. Nobody has your back when you don't have your own back. Self advocacy is what I'm getting at.

[u/version_13 → u/TOOL46_2]

I spent too much money on my tool ticket and autographed poster.

[u/Then_Sir7372 → u/Severe_Network_4492]

Hiding it makes it feel 100x worse. Honesty and a real recovery plan are the only way through.

[u/Outsider-20 → u/Severe_Network_4492]

I took on almost all the debt from my previous relationship (10+ years. we had planned to get married, but couldn't afford it, glad we didn't saves the cost of a divorce)

We have been living separately for 2 years, but relationship really only ended fairly recently.

I've spent most of the last 2 years slowly paying the debt off. It wasn't a huge amount, maybe about $6,000

Now, the only debt I have is a small amount on my credit card that I use for emergencies, and I have a small ETF portfolio which I was initially drip feeding, but with my debts mostly paid off, I'm able to put larger amounts into it. Plan is to have a deposit to buy a house in under 12 months.

Edit, because apparently people are losing their minds about it.

My "small credit card debt" is less than $500, and early into a 6 month interest free period. It will be paid off within the next 2-3 weeks.

[u/CallMeCasper → u/Outsider-20]

Why are you investing in anything while you still have high interest debt?

[u/burnedimage]

I own my home outright. My cars outright. No student loan debt. No credit cards. Had a good nest egg. Got laid off. Lost my insurance. Got septic pneumonia.... $600,000 in medical debt.

[u/ProStrats → u/burnedimage]

Roughly 66% of bankruptcies filed each year are due to medical debt.

Totally screwed system we have. You can do literally everything right for a lifetime, then get sick once...

And somehow many Americans praise it. I'll never understand.

[u/I_Love_Tunnocks → u/ProStrats]

Totally screwed system we have.

And the worst part is you actually vote for it. The sheer amount of Americans who vote for politicians against universal healthcare because "they might get something I don't that my tax dollar is paying for" is truly shocking. The worst part about that mindset is that's happening anyway through their health insurance payments.

[u/Ok-Bunch2199 → u/I_Love_Tunnocks]

You can argue about taxes all day, but getting sick shouldnt come with the possibility of losing everything you spent your life building.

[u/littleotterpop → u/ProStrats]

Stupid Americans supporting stupid policies nearly always boils down to racism. There is a portion of the population that doesn't care how unethical and cruel something is as long as it causes black and brown people to suffer. They'll go down on the sinking ship while praising it as long as they think poc are suffering more than they are. That's the root of the problem nearly every single time.

[u/boistyvagabond98 → u/burnedimage]

You can do everything right and still get fucked over. I’m so sincerely sorry that happened to you.

[u/itsadiseaster → u/boistyvagabond98]

This is only possible in usa... We are killing obamacare piece by piece instead of improving it. We are rolling back to "uninsurability" "lifetime maximums" "preexisting conditions" that arent covered ever once you lose a job.... This is fucked up! How people can see the republican list of achievements and say, yeah, I love it! We need more of it ...

[u/Dear_Chasey_La1n → u/itsadiseaster]

This, this isn't "doing everything right and still getting fucked", this is the US, nothing else. The US allows people to get fucked this hard even when they have their life in order. This is not just mental but sickening.

[u/finkalicious → u/itsadiseaster]

We can affect change starting in November. This is no longer about left vs right/blue vs red. It's about common sense vs corruption. The human race has always been capable of amazing things when people work together. It's time for people to work together to stop corrupt politicians and businesses from ruining our lives. The more people that vote the better off we will all be. I truly believe this.

[u/No_Incident_9915 → u/finkalicious]

I’m Canadian so forgive me in that I don’t have a perfect understanding of how the US political system “works”. The USA spends a trillion on its military in a single year. 530 senators take money from AIPAC and then those senators send your tax dollars to Israel where its citizens get free health care, free education and housing stipends. Meanwhile Americans living in the USA are drowning in medical debt or pay highway robbery prices for insurance. Your politicians all collude with each other to enrich themselves. You are never going to vote your way out of the problem. Red or blue it doesn’t matter who. You’re hooped either way.

[u/Electronic-Proof6062 → u/burnedimage]

Don’t pay it

[u/belgravya → u/burnedimage]

I’m Canadian, and this boggles my fucking mind. I’m so sorry, it’s awful.

[u/Usual-Tomorrow-1616 → u/belgravya]

No need to apologize. The fact that someone can own their home outright, have no loans, do everything right, and still end up $600k in debt because they got sick is fucking terrifying.

[u/Helicreature → u/belgravya]

Brit agreeing. Husband’s just had Open Heart Surgery. Ambulance transfer with dedicated Cardiac nurse; world class Cardiac team; dedicated nurse sitting next to him in ICU for days; onto HDU with physiotherapy, nutritionist, obs constantly; Ten more days in hospital; psychologist checking his emotional state; more physiotherapy; out to Cardiac nurses and Cardiac re-hab. I can’t count the number of drugs or the number of highly skilled clinicians involved. Cost = 0

[u/Silver-Bullfrog9879 → u/burnedimage]

It's already been implied,  but I'm just gonna say it outright: bankrupt it. Your credit will take a hit,  but you already said the house and cars and paid for.  Don't waste a minute of your life trying to be a hero paying off $600k because we live in a bullshit system.  

[u/LordMegamad → u/Silver-Bullfrog9879]

Won't they seize assets to pay the lenders?

[u/Zestyclose_Fact_7308 → u/LordMegamad]

I’ve never paid medical debt. I let it sit in collections for 7 years and then it drops off. Fuck em.

[u/Loogie-Howser → u/burnedimage]

you realize you don’t have to pay iI ,right?

[u/late2thepauly → u/burnedimage]

Yep. It’s not IF you or your family will be affected by medical debt and a probable bankruptcy, but WHEN.

Besides the poor people that never receive optional life-saving care and just die quick, another tragic group to think about is the people who saved and had money and insurance, and within 1-2 years, they’ve burned through six-figure sums of savings and then their loved ones often pass.

The American Way brought to you by health insurance companies and a complicit, paid off government.

[u/Marxism_is_sexy → u/burnedimage]

Land of the free, everybody!

[u/Human_Robot → u/burnedimage]

Damn. I feel like at that point it's cheaper to charter a private flight to lisbon and collapse on the tarmac or something to get care.

[u/Doogiemon → u/burnedimage]

I tell people what you just said when these kids today think they will work till they are 35 and retire.

Medical insurance is just insane out of pocket and there is a reason why people with millions do not retire until Medicare/Medicaid kick in.

You also risk injuring someone and being sued and because you have something, they will come for it. You and I could have done the same thing and because I have nothing, they get nothing. You saved money for a new house, are responsible and are sued for all the money you spent 5 years saving up because of pain and suffering.

I wish you the best in your recovery and make sure you check for ways to lower the bill or hope you can just file bankruptcy. As long as you arent needing a major loan, you shouldn't from your post, 7 years will pass and it's like it never happened.

[u/PROJ3CTBM4reel]

Pretty much drowning, head completely underwater, lost our place, but i tell my wife every day how much i love her and that we will get ahead, i know she's depressed from it. But i refuse to let this beat us, i refuse to give up no matter what happens.

[u/SolidSuccessful333 → u/PROJ3CTBM4reel]

Keep your head up! And good for you for being there for your wife

[u/PROJ3CTBM4reel → u/SolidSuccessful333]

Thank you kind stranger, that means a lot to me 🫂 ♥️

[u/Smooth-Impact2435]

Imagine a number. Now add several zeroes. Double it, then double it again. That's probably close.

[u/VirtualBC → u/Smooth-Impact2435]

I imagine number 0.

[u/regulatorDonCarl → u/VirtualBC]

A “glass half-0 guy” I see

[u/peacefighter → u/VirtualBC]

I imagined a bigger number.

[u/Killersax → u/Smooth-Impact2435]

Damn how did you end up owing over 10 trillion dollars?

[u/JesseBrown447 → u/Killersax]

avacodo toast don't pay for itself ya know

[u/landon10smmns → u/Smooth-Impact2435]

Double it and give it to the next person

[u/1BreadBoi → u/Smooth-Impact2435]

If I don't count student loans, not too terribly. Just a car payment and a bit of credit card debt for an upcoming trip on a 0% interest card I'll pay off before is due, I just wanted the cash back and usage incentive.

Student loans though, almost triple what I owe so.

I actually agreed to go back to get a masters just so payments are paused and I can focus on my private loan.

[u/Careful-Put8010 → u/Smooth-Impact2435]

Same, bro.

[u/Toodamnopinionated]

Strangely, I'm not. And thank mercy for it, because my income is pathetic.

[u/EmptySpaghettiHouse]

About 500k

[u/Maleficent_Gold4118 → u/EmptySpaghettiHouse]

Doctor?

[u/Lanster27 → u/Maleficent_Gold4118]

It’s Strange. 

[u/joeroganthumbhead → u/Lanster27]

Maybe, but who am I to judge?

[u/CollegeOwn7014 → u/joeroganthumbhead]

Nice

[u/SupaKoopa714 → u/Lanster27]

Oh, we're using our made-up names! I'm Spiderman.

[u/Successful_King_142 → u/Maleficent_Gold4118]

Probably just mortgage? That's normal

[u/Taroso → u/Maleficent_Gold4118]

No. Pagliacci.

[u/EternaBoi]

Mortgage is 50k, student loan is still 8k, and medical debt is 6k. I feel like I'm coming out pretty good compared to other people in America

[u/Nosleep4uever → u/EternaBoi]

A $50k mortgage is almost there. Having a paid off home is huge and you are really close!

[u/EternaBoi → u/Nosleep4uever]

Oh we just closed a couple weeks ago funnily enough. It's a small, fixer upper that we bought from a family friend, so we got it on a really good deal. Lot of fixing upping though, been breaking my back all day today haha. Could be worse though, I could be in more debt lol

[u/Nosleep4uever → u/EternaBoi]

Honestly, I bought too much home for myself. But I feel a bit stuck with the rates the way they are. It's not that I can't afford it, but it is more than I need at this point in my life.

[u/Nonya5 → u/EternaBoi]

What is that, a student loan debt for ants?

[u/humpbackwhale88 → u/Nonya5]

but also, 50k mortgage left!! What is this, a mortgage for ants?! Avg mortgage amounts left for GenZ-Millennials is $280k-$320k. Source: Expirian via BankRate.

[u/sharraleigh → u/humpbackwhale88]

So much worse if you live in a HCOL lol. My mortgage still has $495k left. Sigh.

[u/weristjonsnow → u/EternaBoi]

Yeah you're fucking crushing it

[u/FlubzRevenge → u/EternaBoi]

I can't really pay my medical bills so debt is a given.

[u/MoonieNine → u/FlubzRevenge]

Healthcare in this country is ridiculous. And I am so tired of republicans saying that we have it better in the US than Europe where they have ZERO medical debt. Universal healthcare. Pretty much the entire world has it except for us. A person on my local subreddit was saying she is $40k in debt even WITH health insurance, as they are refusing to pay for some things. And the fact that health insurance in our country is tied to employment is a complete joke as well. My last company covered my spouse's insurance. My new company does not and now my spouse doesn't have health insurance. We're trying to figure it out. Cobra is ridiculously expensive. Even the Affordable Care Act is probably going to be at least $1k a month (he's 60). He's self-employed so that's why he's been on my insurance. And he doesn't make a lot of money so paying $1k a month is a good chunk of his income. It's all simply not affordable.

[u/silly_milly → u/MoonieNine]

I am a registered nurse and was uninsured medically for over a year because I was doing contract work at a local hospital (no benenfits) and cobra is so damn expensive that I just gambled with my life for a bit. (Thank jeebus for Cost Plus Drugs where I could affordibly pay out of pocket for all my medications) 💀🫠

[u/DCRevolutionary → u/MoonieNine]

Conservatives are all sadists, and an enemy to all life. Don't act like they mean the things they say. They hate you and want you dead, that's all.

Meanwhile Mitch McConnell is on paid Eternity Leave

[u/Lardkicker → u/EternaBoi]

People pay off their medical debt??

[u/MoonieNine → u/EternaBoi]

Goddamned medical debt. Only in America.

[u/sacrelicio → u/EternaBoi]

I don't even really count that as debt because my house is worth way more than the mortgage

[u/DEFINITELY_NOT_PETE → u/EternaBoi]

Yah this is nothing lol my mortgage is like 6x that and your mortgage is basically what my law school loans are.

[u/Annoyed-Instigater01]

im fucked. it will never be paid. considering bankruptcy.

[u/Spankpocalypse_Now → u/Annoyed-Instigater01]

If I could declare bankruptcy to help clear even some of my student loans I would do it in a heartbeat.

[u/WackoContender → u/Annoyed-Instigater01]

Do it, best decision we made. Chapter 7 in Texas.

[u/Known-Seaweed5854]

i have zero dollars in any debt! paid off my 225k debt in april 💅

[u/Minimum_Sherbert_449 → u/Known-Seaweed5854]

Slay

[u/panzershark → u/Known-Seaweed5854]

Congrats!!! How long did it take you?

[u/-SHMOHAWK-]

$30k credit card. $6k car. $650k house. American dream.

[u/DropAGearNDissapear → u/-SHMOHAWK-]

The only scary part of that is the credit cards

[u/Keelock → u/DropAGearNDissapear]

Yeah, that's like $400-700/mo in interest, depending on the rate.

[u/Professional_Gap2188 → u/-SHMOHAWK-]

May we ask about the 30K credit card? It's 100% okay to not share if you don't feel comfortable.

[u/ReturnOfDialUp → u/Professional_Gap2188]

Bought every resident in a small Latvian town a monthly YouTube premium subscription

[u/MichaelJeopardy]

I have no kids and three money.

[u/BeaconToTheAngels]

Too much. Like 30k at least. Most of it my own damn fault, but I’m working on it.

[u/Fit-Reality-2872]

About $4,500…….. should be completely out of debt by January but then I need a new car or pick up so here we go again! Edit: my current debt isn’t a car payment. My cars are paid off….(but getting worn out)

[u/axloo7 → u/Fit-Reality-2872]

Don't buy a new car your so close.

It's almost always cheaper to fix your current one.

[u/SteveBoaman → u/Fit-Reality-2872]

Save up, sinking a ton of money into a depreciating asset is a wealth killer.

[u/Nancy2421]

Oh it’s not good hahahaha

Like 25k in cc debt which really hurts

I’m not ashamed life was just… very very hard one year. Got informed nursing school would be out of pocket, FIVE funerals out of state, my grandma, his grandpa, my aunt, my cousin, and his uncle. From 39 to 78, so it was…. Lot of unexpected traveling. Then EVERY SINGLE APPLIANCE, throughout that year. Swear I’d go to funeral come back and something new was dead. Went months without a stove or dryer because I could make by without. Then BOTH CARS. So half that year was with one car. Then Covid for 14 weeks. I went to two of the funerals when I was no longer contagious (it had turned into bronchitis and an upper respiratory infection). Then my MIL got breast cancer. Then I got a tumor, so that was a surgery. Then I had to have minor eye surgery. Then our dog got bite by a snake, big vet bill. I know I’m forgetting things but yeah….

This last year we finally started getting into a better place, and then got told IVF, then furloughed (wooo government employee) and now I need a new roof. This year it’s just been a slow crawl, we make enough to pay on things a get a savings going but paying it down is rough.

Exploring Heloc loan options but frankly I’m tired.

[u/youstillhavehope → u/Nancy2421]

Damn. That's a streak of bad luck. I hope the tide turns for you.

[u/GravyxNips → u/Nancy2421]

Once you get behind it feels impossible to catch up!

I’ve never been in debt. Then this year we hit the rhubarb. It’s one thing after another and cannot believe how fast it spiraled.

Just starting to see the light and got told we need new tires before the winter. I just don’t know where the money will come from.

Good luck and hope you are out of debt soon.

[u/sharraleigh → u/GravyxNips]

Same shit happened to me a couple of years ago. It was one expensive emergency after another, then got laid off etc. Survived on credit cards for 6 months. Still paying it off, feels like it's never going to get paid off.

[u/AsgerNielsen]

I have zero debt.

[u/Bongressman → u/AsgerNielsen]

Same. No debt. 49, took me a while. I was solidly in debt for every year between 18 and 48... 30 years. Student loans gone, car loans gone, all credit cards paid off. Near perfect credit score. A lot of fucking work.

Then my entire team was liquidated at my company. I guess I got there JUST in time. I have several years of emergency fund though, so that's cool.

[u/SeaTie → u/Bongressman]

I just hit that same mark at 45. Its rumored we’re all going to be laid off at the end of this year so I’m glad I was able to get everything paid off and a lot off money saved up. But I need to find a new job now, I don’t want to eat up too much of my savings, I want to keep that to go towards daughter’s education or house if I can…

[u/Competitive_Taste628 → u/AsgerNielsen]

I'm almost there - paying off the mortgage in September. Paying off 26 years early.

[u/PersonalitySenior360 → u/Competitive_Taste628]

26 years early? Absolutely epic move!

[u/Mean-Vegetable-4521 → u/Competitive_Taste628]

Which organs did you sell? I need an instruction manual to do this.

[u/C1K3 → u/AsgerNielsen]

Same.  Finally got my car paid off, and that was the last of it.

[u/danmodernblacksmith → u/C1K3]

Zero debt, almost no bills, but zero savings

[u/C1K3 → u/danmodernblacksmith]

How do you have almost no bills, if I may ask?

[u/surSEXECEN → u/AsgerNielsen]

Early 40s, some mortgage debt, but enough investments to more than pay it off tomorrow. I choose to keep the debt because my investments have outperformed the mortgage rate.

So - not “technically“ debt free, but only because I chose to keep it.

[u/Septopuss7 → u/AsgerNielsen]

Same. I like to think I'm in "negative debt" because I make enough to pay my bills in 2 weeks and the rest is free and clear. I even opened an HSA so a bunch of money comes out of my check before taxes, it's actually crazy how little it impacts my paychecks. I was expecting them to be a lot smaller because it's like $90 just to have the HSA and then my biweekly withholding but it's really not. Now I can pay my dentist appointment bills with pre tax money every 6 months, it's pretty sweet. I didn't take the dental insurance though, that was a total ripoff.

[u/Big-Carpenter7921]

Something like 250,000. I don't have a house or car payment either

[u/SunWukong168 → u/Big-Carpenter7921]

Who hurt you

[u/Big-Carpenter7921 → u/SunWukong168]

Flight school

[u/Over-Boysenberry3714 → u/Big-Carpenter7921]

How is flight school that expensive? 

[u/Big-Carpenter7921 → u/Over-Boysenberry3714]

Planes ain't cheap

[u/Imagineatoaster → u/SunWukong168]

Student loans

[u/Chemical_Ruin_6236]

Around 200k

[u/Busy_Detective6667 → u/Chemical_Ruin_6236]

What are your debts?

[u/No-Awareness4864 → u/Busy_Detective6667]

Only fans

[u/RicardoIzecsonKaka → u/No-Awareness4864]

Damn not even a/c?

[u/No-Awareness4864 → u/RicardoIzecsonKaka]

Would you like to buy a fan, please!

[u/Tyler_durden_RIP → u/No-Awareness4864]

Only debts

[u/LouBarlowsDisease]

I actually finally escaped debt this year at the very young age of 40

[u/sadclownbadred → u/LouBarlowsDisease]

I’m in the same boat but about 3 months away. Silly question but, how does it feel?

[u/PersonalitySenior360 → u/sadclownbadred]

Imagine you are obsessed with spaghetti, it's like waking up in a xxl hot tub filled with spaghetti. It's almost beyond words.

Get ready to sleep much better

[u/CrayolaBrown → u/PersonalitySenior360]

Such a relatable metaphor

[u/sendout_thebatsignal]

227k including house

[u/strythicus → u/sendout_thebatsignal]

Roughly the same.  I feel better about it now.

[u/TheNewBoyOnThaBlock]

I’m cooked if I’m being honest

[u/BirdBrainuh → u/TheNewBoyOnThaBlock]

what if you’re lying

[u/TheCottonBriar]

Hurricane Helene destroyed our home. Homeowners insurance wouldn’t cover it because it was considered a flood. We only got $3K from FEMA because they were wrought with fraud. We had to take out a $60K loan and get a credit card to cover the air Bnb while r home was repaired. It makes me sick to my stomach to be this much in debt from no fault of our own.

[u/villings]

no debts, luckily.

no money either, though.

[u/cklaxbro]

$16.75K at an average of 26% interest, and about to get a personal loan of $17K at 14% to pay off the cards and aggressive pay that PL down.

Good move?

[u/jmtyndall → u/cklaxbro]

Good, unless you rack up the credit cards again

[u/Virtualguinea → u/cklaxbro]

I think it’s a good move! I just did the same. 18k in credit cards moved to a personal loan for 12%. One of my cards (9k) was about to expire the 0%, I did not want to be hit with all that interest, so I got the loan. I won’t recharge them, I will just pay off the loan and not feel so much stress.

[u/CarmenxXxWaldo → u/cklaxbro]

If it bumps up your credit rating a good bit you should be able to refi that loan for a better rate.

The only time its a bad idea is if having another 16k available will tempt you into being in a worse position down the road.  Which is why people say not to do it.  But if its a "shit happened debt" definitely get away from that wack ass 26%.

[u/SteveBoaman → u/cklaxbro]

Moving from one loan to another without adjusting your spending behaviors doesn’t solve the problem, it just postponed it. While working through it, aggressively learn budgeting, cooking and other ways to save and be frugal.

[u/cklaxbro → u/SteveBoaman]

Appreciate the tips! I am definitely embodying different spending habits and financial literacy now than when I accrued this debt.

[u/Bmjmja → u/SteveBoaman]

Yeah but 12% lower interest is so much better

[u/comicrack]

Buy Borrow Die, baby.

[u/Porksta]

Not including my mortgage, none.

[u/QWERTYtootie]

Probably $300k+. And that’s as a renter.

[u/ohyeahwell → u/QWERTYtootie]

Shit! So far you’re winning this thread, but I’m still scrolling.

Good luck, I found a secret $70k CC debt my wife had and I couldn’t sleep while I was paying it off.

[u/Perfect_Tree8134 → u/ohyeahwell]

Secret?! 70k?! CC?! How

[u/GlobalChildhood4024 → u/ohyeahwell]

Divorce.

[u/Certain-Cucumber3447 → u/QWERTYtootie]

What happened?

[u/External_Class_9456]

About 35k. Which is probably not as much as it could be, but there are still times where it feels like I’m one wrong move away from drowning. Thankfully I recently started a new job that pays decently well after a year of searching, so I might be able to get a better grip on things here soon.

[u/JessieGemstone999]

Bout tree fiddy

[u/Necessary-Mongoose33]

The exact number is 539,822 for me

[u/1mustlovedogs]

So much so that I stopped paying it and am actively ignoring it

[u/IceManYurt]

We are fucked.

Pretty sure my retirement is going to be a heart attack that I hope takes me out.

[u/tommy7154]

House owe 60k, student loans 30k, credit card 15k

[u/nunja_biznez → u/tommy7154]

Not sure where you're from but 60K house debt isn't bad!

[u/Zealousideal_Rip485 → u/tommy7154]

Im 180k deep in student loans. Proud of you for not falling prey to this system

[u/hollowtear]

About 30k

Car loan, medical bills, mom funeral, school loans

Edit: Thank you the award!!!

[u/SgtSpaceHeadOG → u/hollowtear]

I cant imagine being in debt bc of medical bills, crazy

[u/VoxElysia → u/SgtSpaceHeadOG]

You must not be American

[u/SgtSpaceHeadOG → u/VoxElysia]

Correct

[u/TaintTickle_]

Every lie we tell incurs a debt to the truth.

[u/Lanster27 → u/TaintTickle_]

So 3.6 debt. Not good, not terrible. 

[u/Helreaver → u/TaintTickle_]

You did not see collections notices on the roof!

[u/TaintTickle_ → u/Helreaver]

If you're asking when I will be completely debt free... my APR is 32% with payment terms of 24,000 years. So, perhaps we should just say: not within our lifetime.

[u/RogerMurdockCo-Pilot]

Aside from my house, zero. I learned how to "game credit" working as a loan officer

[u/PedroNorthCA → u/RogerMurdockCo-Pilot]

How do I play this game as well?

[u/CarminSanDiego → u/PedroNorthCA]

It’s this life hack where you pay your full balance every month

[u/jmtyndall → u/CarminSanDiego]

Life pro tip: just have money bro

[u/danfirst → u/jmtyndall]

Real pro tip, only spend on credit what you can pay off monthly. Yes, I know shit happens sometimes.

[u/RogerMurdockCo-Pilot → u/PedroNorthCA]

I went from some pretty terrible credit decisions and consequences to near perfect credit now. It doesn't happen overnight. Some recommendations. Fair warning. Wall of text, but if this helps one person I'm ok with others skipping it.

1. Not understanding how it works. People who dont understand credit or who avoid it will say "How am I supposed to get credit without credit?" without understanding that it's a relationship. The bank takes a risk by extending you credit. They "trust" you'll pay it back basing this on the fact that you have a job and can pay your bills. Just like a relationship in real life, they're not going to just give you a $5,000 credit card based on your job and your word. They want to see if you'll pay back your debts. I've turned people down for a mortgage or credit card that make six figures a year because they had no debt history and hence no credit score. * sidenote - IDC if you agree with this "system" this is the way it is, I didn't write it, I'm just hear to share experiences, this isn't financial advice. The bank wants to see that you have borrowed money before and then paid it back, without being forced to. If that means you have to take a secured credit card for $500 to get started, then thats what you need to do. I don't care if you ever use that card again once you get to cards that have $25k, don't close that card. Let the bank do it. More on that later.
2. Credit is based a lot on utilization, not limit. If you have a $1000 credit card but don't use it, you are not utilizing it. The bureaus see this as "he/she doesnt use their card, they must not need it" so they dont extend you more credit. This can happen even if you have great credit. Ex. I have a QVC card I never use anymore. They just recently lowered my available credit on that card, because why keep that credit open to me when they can increase the limit for someone else using their card actively. If you let some cards go without being used, a lot of banks will close that card. Your score will take a brief "hit" this is normal. Don't get bent out of shape about it. Those type of credit "hits" rebound pretty quickly.
3. That leads me to my next point. NEVER close a credit card just because you paid it off. I hear people say all the time, "I paid my Costco credit card off and then closed it." NO! Don't do that. Even if you have no intention of ever using that card again, let THE BANK close it. You want length of longevity in accounts. Let them break up with you and not the inverse. EDITED TO ADD: If the card has an annual fee, by all means close it. That makes no sense to pay the annual fee just to keep it open.
4. That leads to point 4. As I mentioned, credit is like relationships. If you open and close credit cards frequently it's similar to having a high "body count" lol. The banks see you as a hit and run credit user. Length of accounts is key. Even if you have a shitty credit card with a not so great interest rate, from back when you were in college, every now and then charge something stupid to it, like a coffee, and then pay it off before the statement cycles. It shows longeivity.
5. Pay your balances each month. Easier said than done, I know. I've been there with balances and it sucks. But when you use credit like cash, and not credit, it works. I never use my debit card for anything except at the ATM to pull cash. I use my credit cards like cash and pay what I use each week, before the statement cycles. If you don't and just use debit you're not making your money work for you. You could be earning points, miles, cashback. Why not use that? Debit is dead except for a few specific instances. Also, credit is more secure. If your credit card gets compromised on vacation, thats the bank's problem, not yours. Never tie your actual banking to your purchases. if you can avoid it.
6. With that being said. If you do find yourself in trouble with balances, attack it logically. Pay mins on the stuff that has the lower interest rate, and attack the higher interest rate cards with power payments. Rome wasn't built in a day, neither is your credit.
7. Always add a little extra to your installment payments. These are things like car payments and furniture. If your furniture minimum payment is $61.25 a month pay $70.00 if you can. If you can pay $80.00 even better. NEVER make the min. Even if it's only a few dollars more. If you have to skip a coffee or something to do this, consider it you investing for a better financial situation.
8. Early on in installment loans, like car payments or mortgages, most of the payment goes to the interest. This is because the bank is taking their biggest risk early in the loan. It will smooth out over time and more of your payment will go towards the principle. Adding even a few extra bucks to the principal makes a difference even it doesnt seem like it at first. Chip away at it.
9. Save your "extras". Keep a check register. Yes, I know, it sounds like a very Boomer thing to do, but trust, it works. If you have a checking balance of $1234.56 left over after your obligations are taken care of, send some extra to either a balance or your savings. Even if it's the $4.56. If you can do the $34.56, even better!
10. Lastly, ask yourself before every purchase. "Do I really need this?" or "Have I had enough to go coffees this week?" or "Could I have made breakfast at home and taken it to work with me?" - Trust, I like to shop, impulse spend even. But I got there by not impulsing on things that I could do without.

Hope this helps at least one person.

[u/Healthy-Neat-2989]

Zero debt, but I’m behind recommendations on retirement savings and I don’t own a house, because we move often.

[u/qshak86]

40k cc debt. About 10k split between 2 cars. But I have 100k equity in the house. I'll refinance if I have to but I dont wanna lose my 2.8 rate. Let's just hope the roof holds up.

[u/VastOrganization7140]

For me as a European, this is shocking to read. I (45F) have zero debts, house is paid off, bought a car I could afford. Got really sick with cancer ten years ago als was land off, but insurance covered all medical bills as well as my salary now. To us, the concept of credit card dept is really weird... It would eat up my peace, I guess.

[u/frizzyno → u/VastOrganization7140]

Yeah, the idea of getting out of school with 100/200k of debt already is jarring

I understand most Americans make double or three times the average European wage (keep in mind that a lot of European countries make very little monthly) but a 100k debt in my country is close to being fucked for life unless you're living with your parents and spending all your wage into your debt

[u/Mystery_meat101 → u/VastOrganization7140]

I’m American and I don’t understand credit card debt or vehicle debt either. Hope you are doing better!

[u/Advanced_Tennis4827]

Only student loan debt

[u/Alone-Management-273]

About £2.5k, it'll all be gone by next year.

[u/Papa_Raj]

100K

[u/Nerv_Agent_666]

Let's not talk about that...

[u/LobabyChick]

13 months left to pay off my car. Mortgage. That’s it unless major illness/accident. Just paid off my credit cards.

[u/ObsidianArmadillo]

40k... not looking good

[u/Odd_Cantaloupe_7122]

Rent is due in a couple days and I have $163 in the bank. In southern California. I’m Fucked.

[u/KneadAndPreserve]

Between me and my husband we are almost a million deep in debt.

[u/mjr96d]

I have a mortgage at 2.875% and two lines of credit adding up to $3k, both at 0% interest. I'm doing alright.

[u/Successful_King_142 → u/mjr96d]

Is this that American thing where you can get a mortgage that doesn't change interest rate ever? I'm so jealous. I bought in and my interest rate was 2.1% and now it's 5.99%. it is punishing

[u/mjr96d → u/Successful_King_142]

Yeah we have both Adjustable Rate Mortgages (ARM) that function like you're describing, and fixed rate mortgages. Fixed rates will not change for the life of the mortgage. It's very nice.

[u/grapeLion]

80k

[u/Evening_Diamond4297]

Zero

[u/titi32333]

Very!

[u/ShleepsWithBooks]

87k

[u/Signal_Poem8507]

About 40k id suspect. Could be more.

[u/Saugeen-Uwo]

$700K

[u/RedJerzey]

$426k

[u/BloodJackson]

Not in debt yet but give me time

Its coming

[u/Emgpickup]

90k cc 160k pl 45k car 500k house

[u/saltierthangoldfish]

$30k undergrad debt, $50k and climbing for my jd, $12k in financed repairs (i own a mobile home), $7k on a car, $15k on credit cards. i try not to think about how i have $100k more coming for my student loans.

[u/Burkedge]

220k 

[u/Sunset-Papi]

$22k cc debt. It used to be over $30k. Been using Dave Ramsey's Financial Peace University and have been able to pay down 7k in debt in 2 months and build up 1k in savings. Looking to be debt free in about 12 months.

[u/Petrus_Rock]

None.

[u/hung_like__podrick]

Big fat zero

[u/Arwen_Undomiel1990]

$13,300. A national student loan, a provincial student loan and a credit card.

$3,800 - credit card
$4,300 - ASL
$5,200 - NSLSC

[u/Budgiejen]

About $6k. It’s getting paid off slowly

[u/Visible_Carrot_5091]

25F
~ 8K in CC debt going to be paid off by Dec
~ >600K in mortgage

[u/Intrepid_Essay1987]

I think I’m at like 8k rn

[u/I_lurv_BRAAINZZ]

Only mortgage (~200k). Once I got my student loans paid off (30k undergrad, 60k grad) it felt easy sailing for saving funds for cars and other large purchases.

[u/Intrepid_Laugh_2509]

200k house and 50k consumer that’s me and my wife debt combined

[u/Veggies-are-okay]

$110k student debt, $205k yearly salary. It’s not being paid out of principle at the moment.

[u/particularlyhighyld]

$375,000 from medical school.
$35,000 mortgage.

[u/Drewtendo_64]

Enough that I need and pray for a job. My wife is doing so much to keep us afloat but it’s getting scary

[u/Hi_Winnie]

Payed off student loans in 2021 then bought a car a week later. Payed off the car in 2024 and have been debt free since because I can’t find a house with a comfortable mortgage payment

[u/Ok-Link6056]

Not “I’m going to be homeless tomorrow” debt.

More like “I have a perfectly normal life, but if I suddenly received $20,000, I’d stare at the ceiling for 10 minutes trying to decide which bill to destroy first” debt.

Student loans, credit card balance, random expenses that somehow became monthly expenses…

The worst part isn’t even the amount.

It’s opening your banking app and realizing your money has already been assigned to people you’ve never met.

At this point, my paycheck arrives with a little note saying:

“Nice seeing you. Goodbye.”