r/debtfreeliving

Surprisingly, nearly 40% of US homeowners had no mortgage at all in 2024, according to the Census Bureau, the highest share in over a decade.

This is often because they paid the home off or bought it outright. Many of those same people are still carrying balances elsewhere, credit cards, an auto loan, maybe a personal loan, even while sitting on a pile of equity. Asset-rich in the house, still pinched everywhere else.

A group with plenty of equity and no low mortgage rate to protect is in a very different spot when it comes to other high-interest debt. Home equity can be used to reduce high-interest debt from cars, renovations, or other loans when done effectively, but some hesitate.

What are everyone’s thoughts on using home equity to reduce debt?

Hi everyone. I’m a mom who has been struggling financially since I gave birth to my beautiful baby girl. I want to be very clear, this is not her fault at all. She is the best thing that ever happened to me.

I’ve always worked hard to provide, but lately I feel completely exhausted and overwhelmed. No matter how much I try, I can’t seem to get ahead. Every single money I earn goes to necessities, rent, bills, food, and basic needs. I don’t buy luxuries. I don’t shop for myself. I just try to survive and take care of my child.

What hurts me the most is the fear that I’ll never escape this debt. I’m scared that when I’m gone, my daughter will somehow inherit my struggles. I know that may sound dramatic, but this weight has been crushing me emotionally and mentally.

I want to be debt-free. I want to give my daughter a better future. I’m just so tired, and I don’t know what to do anymore. I’m reaching out because I truly need help, guidance, or support, anything that can help me breathe again.

Thank you for taking the time to read this.

I currently earn approximately $5,000 per month take-home pay and have around $50,000 in credit card debt spread across 8 credit cards, with interest rates ranging from 22% to 28%. Most of these cards are nearly maxed out.
At this point, the majority of my monthly payments are going toward interest charges, with very little being applied to the principal balance. As a result, I have struggled to make meaningful progress in reducing my debt.
Unfortunately, this situation has also negatively impacted my credit score, which is currently between 630 and 650.
My goal is to obtain a personal loan with a lower interest rate to consolidate all of my credit card balances into a single loan. This would allow me to pay off the cards, simplify my finances with one monthly payment, and help me stay disciplined while working toward becoming debt-free.
I would appreciate any recommendations for banks, credit unions, or lenders that may work with someone in my situation. Any advice or guidance would be greatly appreciated.
Thank you in advance for your help.

Just dropping here.

Hi everyone,

​I created a Reddit account just for this. I am feeling completely terrified, overwhelmed, and lost regarding my financial situation, and I could really use some outside perspective and guidance.

​(Note: When you give advice, please use a direct "do this and explain why" format. When things are too open-ended or vague, I tend to panic, so clear, structured instructions help me anchor.)

​The Current Breakdown:

​Income: Reduced work hours; I make about $400 a week if I'm lucky ($1,600/month).

​Expenses: My personal bills are around $1,000 a month (this excludes the household bills covered by my dad and sister).

​Debt: I am $15,000 in credit card debt. I managed to cancel the card and get onto a 5-year 0% interest payment plan as long as I pay $200 a month. (The interest rate had spiked from 3% to 30% prior to this).

​Cash on Hand: I have about $5,000 total across my checking and savings combined (no real safety net).

​How I Got Here:

Over the last five years, I depleted my $30,000 savings due to a combination of three major surgeries, surprise medical bills, and supporting my household when my dad lost his job. I also had to wipe out my remaining funds to pay off my student loans in one lump sum ($11,000) because the interest rate jumped aggressively from 2% to 10%, and then to 20% post-COVID.

​Beyond the numbers, I am dealing with a lot of emotional weight. I carry a lot of guilt—sometimes feeling like my financial situation is a punishment, especially dealing with the deep regret that I couldn't afford to save my dog.

​Work & Health Limitations:

I live in McAllen, Texas. I would love to work remotely, but I am required to physically be at my office location. Due to ongoing medical issues, I need to use the bathroom frequently, which makes finding and keeping a traditional job incredibly difficult and stressful.

​Upcoming Housing Challenge:

I currently live with my dad and sister, but my dad is going to sell the house soon, meaning I will not have anywhere to go. I've spoken to my dad but he's mostly looking out for himself than thinking of me.

​Where My Head Is At:

I’ve read The Simple Path to Wealth by JL Collins and watched financial videos, but I am still fearful and anxious about investing, especially without a safety net in my early thirties. Paid investing courses are out of reach for me financially right now.

​My Goals:

​Stop living paycheck-to-paycheck.

​Rebuild a true emergency fund and eventually a retirement fund.

​Learn how to actually start investing without panic.

​Secure stable, independent housing in the McAllen area before my dad sells the house.

​If you were in my shoes, what would your immediate step-by-step triage plan be? Given the local Texas housing market and my health/work constraints, how do I tackle housing stability on a low, fluctuating income? Thank you so much for reading.

Paid off credit card debt currently paying balance in full-on one card monthly.

Student loan balance down to 1.1k from 90k

Wife pending pslf for final 8k

She had 17.5k wiped off due to service program

Had close to 60k herself

Starting to save more financially and being asked to assist parent in paying off loan for property that is now over 100k after original loan was 20k

Also there was a 10 year window when parent paid nothing on balance

Wants me to be added via quitclaim

I’m about five months behind. I don’t know what will happen after this.

Lost my savings to gambling.

That money could easily keep me alive for 7 years.

I'm turning 24, no job, my friends are working on good software jobs, my mind no longer works, it wants to shut itself down forever, as it gave itself too many chances and it malfunctioned while gambling.

I once made 5k$ a day by . Now I may not even make that in a year. Or save that in 2-3 years.

Hey god please take me with you.

I have 3L left can I do something, I am super lost, looking at darkness all around me.

It may not seem long in the grand scheme of things but I’m in default mode because I didn’t know I had this loan to pay off, I don’t remember accepting this loan but I used the money so I have to pay it back. I have 2 jobs, and one pays 18 an hour and another pays 21.25 an hour, and I just got the both of them. But I want to pay off this loan as fast as possible so I can be eligible again, any advice on other ways to make cash? I’m currently enrolled as of right now. I need help

I’m finally getting better with my debt. My remaining balance is now down to $795.

For anyone who was confused by my previous post, I live in SE asia and $795 is still a pretty significant amount of money here. My monthly income is only around $150, and I’m still a student, so it’s definitely not something I can pay off easily.

I honestly feel relieved seeing the number go down this much. I still have a long way to go, though, so I’m going to keep working and try to pay off the rest without taking on more debt.

If anyone has any advice on how I can keep moving forward, manage my money better, and avoid getting into this situation again, I’d really appreciate it.

Hopefully I’ll be able to make another update saying I’m completely debt-free. 🙏

I'm at a loss on what to do anymore.

In 2025 I got into a car accident I did end up getting a new car. I pay 300 every month for the car and split the payments in between. My car insurance is 413 ( it's gonna go down with the renewal.) ( can't pay my insurance right now due to being tight and a lot of my expenses were from my car and self care like getting my hair done ( cannot do it myself ) sometimes my mom has to take my car due to something being wrong with hers.

I'm on disability and only get 500 the 1st of every month.

I'm also 11k in debt with credit cards and am trying to pay down my highest which is 7,700

My other two is at 1,000 and the other one at 2,400 0 APR which ends in May unfortunately.

I do live with my parent which I give them 200 dollars out of my ssi to pay for rent and my parents doesn't buy me groceries or anything I have to buy my own. Some days I cannot afford any groceries so I just have to deal until I get paid sense my parents said it's my responsibility and they only have enough money for themselves.

I do work right now part time at a gym which has been helping me with my depression I do also go to therapy and it's free due to me being on disability.

I also baby sit on the side for parents I'm also thinking about doing door dash sense my car needs new windshield wipers.

Today I just broke down I have no support at all and I can't do a balance transfer due to my credit being too low and a missed payment.

Of course I don't use the cards at all sense one is closed. I'm at a loss I have some days I couldn't even get groceries so I just had to skip. Today I do need to go grocery shopping thinking about having to just use my credit card sense theirs no food pantry where I live. I do get food stamps but 23 only.

I guess I'm at a loss on what to do exactly.

Discover: 2,500 minimum 75

Bank of America closed 998 minimum 35

Capital one 8,305 minimum 390 sometimes 520

Apr 24 percent

Hello, i'm asking for some advice on what to so.
I currently am drowning in debt, similar to many people and i'm trying to put all my debt in one place so i can pay it off easier.
one credit card has 9.5k
second credit card has 3.9k
school loans are 11.3k
I did the snow ball method and paid everything smaller off. i also pay my monthly car of 455.
I've never been behind on any payments and my credit score was just 756 but went down to 646 due to not paying my school loans ( which i honestly did not know about until last month)
i opened a debt consolidation loan through a credit union 6 months ago and it was the worst decision ever because it's interest rate is not what i was promised.
it was for 17k and i've paid almost 2k on it and it's still at 16k... so im trying to take it out of there as fast as possible but cant get approved anywhere for any type of loan.

Does anyone recommend any loan companies. discover denied me 3 times. One Main financial has high interest rates and i'm not sure if Achieve or National Debt relief are real ?

Starting today, I’m no longer buying anything else new. I think I’ll be pretty good maybe some emergency purchases but for right now I’m just focusing on paying off everything currently I’m in $8000 worth of debt and if I add up the new bill I’ve gotten from my school stuff. It’s a roughly around 9000.. I know it’s gonna grow even more and more but now I’m in that stage of my life where I’m not really going out or doing anything fun I’m mostly just gonna be working myself half to death paying off these debts and eating mayonnaise and pepper sandwiches with celery and water for a good amount of years and maybe having meat under a blue moon once in a while. Sure I’ll spoil myself, but it will be very small and only for usually a half of a day.

I refuse to be in loads of debt for the rest of my life, and I will damn near starve myself to do so!!

I’d rather be a deadbeat to the credit card companies, then be a deadbeat parent!!(never having children a day in my life I dislike saying that lol)

Does anybody have any tips for paying it off a little bit faster? Do I dislike basically put more money into the debt? I’m paying off and hold off eating sometimes?

(THIS IS NOT A SATIRE/JOKE POST I’M ACTUALLY GOING TO DO THIS)

I’m an amateur so tell me if I’m missing any figures

Savings: $3100 (attempting to have an emergency fund)

Debt:
High interest bearing predatory loan from one main
$15k
Credit cards: $500
Student loan:
Delinquent/derogatory payments in collections
Prior eviction: $8k
Unpaid Car insurance policy: $450

Income:
$5000/month

Budget:
Rent/utilities: $1800
Loan repayment: $516 (since 09/24 have only paid off 2k)
Car insurance: $480
Subscriptions: $20
Eating out/misc: $300
Student loan: $150
Gas/car expenses: $100

Total expenses about $3500

Credit score
FICO- 680
TransUnion- 700

I don’t know where to start. The one main loan is really keeping me down. I pay $516 and the. Amanda doesn’t even budge. Where do I start, working on rebuilding my credit to one day buy a house. When I google they say bankruptcy is a feasible option. I tried using a debt management plan but they couldn’t help me much because my loan has my car as collateral and my credit cards are pretty much up to date. ANY ADVICE ALLRECIATED

Over the past 10 years, life has gotten the best of me and I emotionally ate and spent a lot of money. Currently have $20k total with a few credit cards. Started aggressively paying off that debt last month and I already feel better. Credit Karma already emailed me and said my credit score when up 24 points.

What really scared/motivated me is that I had to stop my contribution to the Roth IRA so I can aggressively pay off this debt. Losing that time scares me and I think this will encourage me to hustle as fast as I can to get this debt gone.

Thank you for reading.

I'm a man, married for 2 years, 36 years old, with stable job and honestly paying me decent but things go rough and tough i encounter a lot of problems about my family financially. Now.. I go dip down of loans my financial stability got worse. I'm feel so pity everytime my wife seen me struggle financially. I never loose hope and determination to overcome all of my financial problem. Honestly, I'm looking for a financial institutions who will trust me for getting a loan with the least minimum interest and I'm faithful to pay in monthly terms for at least 5 years or 60 month. I need to do this to stop the worry of my wife and to align my goals.

I'm 24M, currently at Accenture, and moving to Infosys in September. My dad (53) just left his job, and my parents have zero savings. We're staring down a 20 lakh home loan, 15 lakh jewel loan, and another 10 lakh in outside debt.

My mom is somehow managing to pay 1.5 lakh monthly towards these debts. I've been trying to shield them from the pressure, but I've racked up my own 2.5 lakh debt, paying 25k monthly.

I was hoping my new Infosys salary (70k in hand) would help me clear my debts faster. But now my mom expects me to contribute 45k to the home loan, meaning I'll also have to cover my dad's debt EMIs since he has no income. I cant get a new car even a new bike

Honestly, I feel like I'm drowning. I'm completely burnt out, mentally and physically.