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No. of Recommendations: 3
If my income to expense is a positive cashflow because of my current work and income, then at least that would bring in an extra $200+ a month (Hypothetically speaking) which means more money in my pocket to pay off the debt (this is considering after business expenses).

An extra $200/month? Sorry, you need a lot more than that.....

And considering that from your original post, you said It's ironic how I used to be a super frugal saavy person until it came to travel hacking with Credit cards then wanting to build online businesses. your 'business' should be netting you a lot more. If it can't, it would probably be better if you spent the time looking for a better paying job.

As to how much you would need:

According to BankRate https://www.bankrate.com/finance/credit-cards/current-intere... The average rate on credit card debt is at 17.36%, and that's before the extra 0.25% rate that is likely to occur due to the Fed's rate action yesterday. At a 17.5% rate, your $60k in debt will be racking up $875/month in interest. An extra $200/month won't even pay for a quarter of that - much less any principal. At 1% of the principal balance ($600), plus interest ($875), typical minimum payments on $60k in debt at 17.5% would be $1475. At $15/hour, your gross is about $30k/year, which is a monthly gross is $2500. Add $200/month to that, and you get to $2700. Minimum payments of $1475 are almost 55% of that.

You are apparently living rent-free with your parents, but that only leaves 45% of your gross for EVERYTHING ELSE, including OASDI taxes (7.65%), self-employment taxes (an additional 7.65% on the self employment income - you are declaring the self-employment income on your taxes, aren't you?), Federal, state and city income taxes (another 10% - 15%?), food (which you say takes 'most' of your income so 30%?), insurance, transportation, entertainment and savings. You look to be really in the hole, IMO.

Another way is consolidating my debt, it would make more sense to pay a flat rate fee and eliminate several cards and never use them again versus racking up on CC's high interest rates. Agreed?

I highly doubt that with $30k in income, you will be able to find any traditional lender that will provide you a $60k fixed rate unsecured loan. You might be able to get a loan through a lender like Prosper, but their loan limit is $40k (and eligibility for that amount has to be approved). If you were allowed to borrow that much, even with an A rating (unlikely if you have maxed out your cards), and a 5 year term, you would have to probably pay at least 10% to get the loan funded. Further, Prosper charges a 5% origination fee for 5 year loans, so you would net $38k to pay off credit cards and have monthly payments of $850, with $22k in credit card debt remaining. Assuming the same terms as above (1% of principal and 17.5% in interest) would still result in a $540 minimum payment. That's only about an $85/month decrease - even assuming an A level rating. If you have a worse rating, your interest rate would be higher, and you would end up with a higher monthly payment. I don't see how you can pay off this debt with your current income.

Bottom line - if you want to pay off this debt, your first priority should be getting a job with more income.

AJ
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