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I am 35 years old and single. My income is 78K to 80K after taxes and insurance.

I pay $1,500 for rent+utilities, $150 for phone bill, $450 for auto loan, $300 for auto insurance (for 2 people, I am helping a friend who can't pay auto insurance), $750 for a personal loan and $750 to $1,000 for credit card. I also need to send $100 to $200 to my home country. Total monthly expenses are $3,950 to $4,200.

I have $16k an auto loan at 7%, $32k of credit card debt at 20-22% and a personal loan of $18k at 17%. Total debt = $64k.

After the above expenses I need money for groceries, clothes, gas and other monthly needs.

I want to be debt free or at least decrease my total debts from $64k to $10k.

I can't consolidate my debts because I already have a personal loan and I have a poor credit score.

Please advise me how to reduce my debt.

Can I be debt free or should I file bankruptcy (I don't know if that's possible because I am not a US citizen).

Can I be debt free or should I file bankruptcy

There's no reason to file bankruptcy with 64k in debt and a 80K net salary. You can get out of debt in 1-2 years if you're willing to sacrifice. The harder you sacrifice, the less time it will take.

Please advice me or guide me how can I reduce my debt.

• Stop creating any more debt. Cut up all credit cards


• Put 1,000-2,000 in a cash savings account to cover "emergencies" while you are getting out of debt.


• Get on a cash budget. List out all of your expenses in order of priority (housing, food, utilities, transportation, etc.). Put debts last.


• Cut expenses to the bone. No restaurants, no vacations. Every discretionary dollar you spend restricts how quickly you get the debt paid off.


• Once you have all of your expenses laid out, all remaining cash goes to your highest interest-rate debt (I normally suggest the smallest balance, but the interest rates and balances are so high here it might make more of a difference that most cases). Once the cash runs out, stop spending.


• Pay minimum payments on all other debts. Do not skip payments unless you're already in default.

Once you determine how much per month you can pay towards debts, you can figure out how long it will take you to pay them off. Don't expect any quick solutions. Your debt has been building up over time; there's no reason to expect to get rid of it quickly.

Some things you can do to jump-start your journey:

• Sell the car. Use the proceeds to get a cheap car that you can pay for in cash.


• Sell other stuff. Anything you can sell online will help you get out of debt sooner.


• Get extra work. You can probably find part-time work that pays 1-2,000 per month.