🚀 I Can’t Pay My Credit Cards—How to Dig Myself Out of Debt

STEP 1: Stop Adding New Debt

Immediate Actions:
• Lock Up Credit Cards – Put them in a sealed envelope or give them to a trusted friend
• Go Cash-Only – Use the "Envelope System" for essentials (groceries, gas, bills)
• Install Spending Guards – Apps like Rocket Money block impulse purchases

When Calling Creditors:
"I'm restructuring my payments and want to avoid missed payments. What hardship options do you offer?"

STEP 2: Choose Your Payoff Strategy

Option A: High-Interest First (Saves Money)

1. List debts by APR (highest to lowest)

2. Pay minimums on all

3. Throw extra cash at the top debt
   Best for number-crunchers

Option B: Smallest Debt First (Quick Wins)

1. Order debts by balance (smallest to largest)

2. Eliminate the tiniest debt completely

3. Celebrate each payoff
   Best for motivation seekers

Option C: Debt Management Plan
• Nonprofits negotiate lower rates
• Single monthly payment
• Costs ~35−35−50/month
*Best for 5+ credit cards*

STEP 3: Emergency Measures (If Drowning)

Balance Transfers
• Requires 650+ credit score
• 0% APR lasts 12-18 months
• Watch for 3-5% transfer fees

Debt Settlement Risks
• Credit score drops 100+ points
• Creditors may sue
• Tax bill on forgiven debt

Bankruptcy Facts
• Chapter 7: Wipes debt (lose some assets)
• Chapter 13: 3-5 year repayment plan
• Last resort for wage garnishment/lawsuits

STEP 4: Rebuild & Protect

Credit Cards After Debt
→ Keep 1-2 oldest cards open
→ Set autopay to FULL balance
→ Use <30% of limit

Credit Repair Tools
• Secured cards (200deposit→200deposit→200 limit)
• Credit-builder loans (Self, Credit Strong)
• Authorized user status (family member’s card)

Stay Debt-Free
✔ Weekly 10-minute money check-ins
✔ $500 emergency fund starter goal
✔ "24-hour rule" for non-essential buys

Key Differences From Other Guides

1. No Jargon – Plain English explanations

2. App-Tested – Only recommends tools we’ve tried

3. Realistic Timelines – No "get debt free in 30 days" hype

4. Accessible Format – Screen-reader friendly

Take Action Today:
Pick ONE step to implement right now. Small starts win debt wars.