Advice on debt relief program

Based on your income and expenses, a debt relief program could be an option, but it’s important to weigh the pros and cons carefully. Here’s a breakdown of your choices and some recommendations:

  1. Budget Optimization: With monthly fixed costs at $5,875 and additional spending around $1,071, you’re left with roughly $2,000 per month. Allocate more of this to debt repayment. Aim to put at least $1,000 extra towards credit card debt each month.

  2. Debt Relief Program: Debt relief can provide a structured way to manage or reduce your credit card debt. However, it can affect your credit score, and some programs may involve fees or long terms. Look into reputable, non-profit credit counseling agencies, which can help you evaluate your debt repayment options with minimal risk.

  3. Debt Consolidation Loan: If your credit score is decent, consider a debt consolidation loan. This could help by combining your $77K credit card debt into a single loan with a lower interest rate, potentially lowering your monthly payments and focusing on principal reduction.

  4. Balance Transfer Credit Card: Some cards offer 0% APR for a promotional period on balance transfers. If you qualify, this could give you a chance to make interest-free payments for a set period. Be mindful of fees and whether you can realistically pay off a significant portion during the promotional period.

  5. Emergency Fund Priority: With a limited emergency fund and your daughter’s medical needs, it’s wise to keep building this fund. Consider setting aside a small portion of your budget each month for unexpected medical or household expenses.

  6. Extra Income: Since you occasionally earn bonuses and extra income, earmark these funds specifically for debt payments or your emergency fund to boost progress.