Years of Bad Financial Decisions Left Me With $145K in Debt. I Don't Know Where to Start
Sun, August 2, 2026 at 11:00 PM GMT+3 7 min read
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Years of bad financial decisions left one person with about $145,000 in debt, despite earning a six-figure salary. Now, after years of trying to stay on top of mounting payments, they're emotionally drained, overwhelmed and wondering whether intentionally falling behind on their debts might be the only way forward.
"I've accumulated about $145,000 in debt," they wrote on Reddit recently. "It's embarrassing to even type that out. I'm exhausted, mentally drained, and honestly ashamed. There have been days where it's brought me to tears."
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High-Interest Loans Have Become the Biggest Problem
The poster explained that after cutting expenses as much as they reasonably could, they only have about $400 left each month to put toward paying down debt. Their biggest challenge isn't their student loans, which they were able to refinance, but three personal loans carrying extremely high interest rates.
They owe nearly $15,000 to Avant at 20.96% APR, more than $29,000 to Prosper at 22.83% APR, and almost $21,000 to Upstart (NASDAQ:UPST) at 31.61% APR. On top of that, they have roughly $30,000 in credit card debt and about $41,000 in student loans.
The situation has become so overwhelming that they're considering options they never imagined. "Part of me is considering intentionally falling behind on everything so I can focus all of my available money on paying off one loan at a time," they wrote. They also wondered whether cashing out a $15,000 retirement account to reduce their credit card debt might make sense.
The poster added they had already spoken with nonprofit credit counseling agencies, but because they're current on their payments, they were told there was little those organizations could do. They also contacted lenders directly, only to hear that hardship options generally wouldn't be available unless they became delinquent.
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Many readers responded with a mix of practical advice and personal stories.
Some people told the poster to cut out anything they don't really need, like streaming services, expensive phone plans, and entertainment. Others suggested getting a second job, selling things they don't use anymore, or doing gig work to bring in extra money.
What About Bankruptcy?
Bankruptcy became one of the most debated solutions. Many commenters encouraged the poster to seek additional legal opinions, adding that different attorneys may have different views on eligibility.
"Talk to another attorney or 2 and see if they can get you qualified for a Chapter 7," one person wrote. "I've seen many people be advised that they can't qualify, but speak to a different attorney and voila, Chapter 7 filed and discharged."
Others cautioned against intentionally defaulting on debt, even though some shared their own experiences settling for less. "Of course my credit was wrecked for 7 years, but as soon as the 7 years were up I was able to reestablish credit and eventually bought a condo," one commenter who intentionally stopped making payments recalled.
Several readers also questioned how the debt reached this point. "This is a repeating cycle," one person said. "We're joining in during season four. We need a recap of the first three seasons to know how we got here," while another added, "You have to address whatever the behaviors that have led to this debt accumulation… If you don't address this issue first then no amount of financial maneuvering will help."
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One bright spot in the discussion came when the poster shared that they aren't facing the challenge alone.
"I have a very supportive partner, who knows exactly what I owe," they wrote. "And despite it all, she is my biggest cheerleader. I don't want to use her or ruin her financially because of my mess. But I do want to improve it so we can start a family."
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This article Years of Bad Financial Decisions Left Me With $145K in Debt. I Don't Know Where to Start originally appeared on Benzinga.com
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