30yo, making $62K/year wants to know the best way to pay off ~$35K credit card debt with an expected career change/pay cut
The debt is primarily a result of a lengthy divorce process that involved a custody battle for my 4yo. Attorney fees, a higher rent, and childcare expenses piled up over the last three years. FWIW, my credit score was bordering good/very good prior to the separation, but missing out on the ex’s income with these new conditions caught up to me financially very quickly. On top of that, I am planning on switching to a new career this fall, in which first year salaries range from $55,000-$60,000 in my area, but with very good growth prospects after that.
The situation – about $3,500/month of after-tax income with $1,600 monthly rent. Additional monthly expenses (utilities, childcare, gas, groceries, etc.) amount to less than $800/month, which leaves me with $1,100 a month to pay off the cards below, and add to a savings account that currently has $600. Credit score is still considered okay, but the high utilization is only making things worse. I was able to settle my balance with the attorney earlier this year, so no legal fees are expected going forward.
NFCU1 – 16.9% – $16,225.22
NFCU2 – 13.24% – $16,197.22
Chase – 25.24% – $2,676.65
Any advice would be appreciated. Debt consolidation companies recently started reaching out to me by mail, and wanted to see if I should consider that route.
Edit: Thanks all for the feedback and encouragement! Tried my best to keep the post finance-oriented, but lots of questions regarding the divorce and living situations. In order to ensure getting joint custody, the attorney recommended a 2BR apt as opposed to a 1BR. In terms of roommates, that would involve modifying/breaking my current lease and getting the ex to approve. I personally wouldn’t want a stranger moving in anyways, but I am keeping an eye out for friends/family who might be looking for something temporary.
I don’t feel quite comfortable sharing my location at this time – simply know that $1,600 is a decent deal for 2BR. I’ve seen $1,400-$1,500 in the area, but any savings there would be negated by the requirement to pay 2 months rent to break the current lease.