Advice for student with credit cards debt

You’re in a tough spot, but it’s solvable with a solid plan. Let’s break this down step-by-step:

1. Prioritize High-Interest Debt

The most pressing issue is the high-interest rates on your credit cards and loans. Your goal is to reduce these as quickly as possible to minimize the interest you’re paying.

Steps to Take:

Minimum Payments: Continue making minimum payments on all debts to avoid penalties.
Target the Highest Interest Debt: After meeting minimums, focus any extra money on paying down your consolidated loan (31.99%) first. Once that's tackled, move to the PC Financial card (26.99%), then BMO, and so on. This is the debt avalanche method.

2. Increase Your Income

Your income is limited, but a small boost can make a big difference.

Ask for More Hours or a Raise: See if your current job can offer extra hours or increased pay for commission-based tasks.
Temporary Side Hustles: Look for gig work like freelance assignments (writing, editing, graphic design), tutoring, or delivery services. An extra $100–$200/month can accelerate debt repayment.

3. Reduce Expenses

Your budget is tight, but there are areas to trim. Every dollar saved can go toward debt repayment.

Cut subscriptions: Temporarily cancel Spotify ($6.99/month) if possible. Consider switching to a free version.
Adobe Creative Cloud: Check if your school offers a discounted or free alternative. Otherwise, keep it if required for studies.
Groceries: Optimize grocery spending by meal planning, buying in bulk, and using discount apps (like Flipp or Flashfood). Aim to reduce this by $20–$40/month.

4. Consider Debt Consolidation or Assistance

To manage high-interest rates, explore these options:

Balance Transfer Credit Card: Apply for a card with a low promotional interest rate on balance transfers. This could save you money on interest if approved.
Debt Management Program (DMP): Look into nonprofit credit counseling agencies in Canada like Credit Counselling Canada. They can negotiate lower interest rates and set up a manageable repayment plan.
Talk to Your Bank: Some lenders may offer hardship programs or reduce interest rates temporarily. It’s worth asking.

5. Use a Detailed Debt Repayment Plan

Example Allocation (Monthly Income: ~$800):

Minimum Payments:
- TD: $20
- PC Financial: $30
- BMO: $40
- Consolidated Loan: $158
Essentials:
- Phone: $65
- Gas: $200
- Groceries: $200
- Subscriptions: $63 (Adobe, gym)
Total Fixed Costs: $776
Leftover for Extra Debt Payments: ~$24 Use any additional income or savings to pay down debt faster.

6. Long-Term Strategies

Build Credit Wisely: After clearing your debt, keep credit usage under 30% of your limit and pay balances in full to avoid repeating this cycle.
Emergency Fund: Once your debt is manageable, save a small fund ($500–$1,000) to avoid relying on credit for unexpected expenses.