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Old 01-11-2018, 06:06 PM
 
Location: TN/NC
34,864 posts, read 30,954,560 times
Reputation: 47204

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Quote:
Originally Posted by mitchmiller9 View Post
I would approach your parents to see if they will allow you to draw up a promissory note with them to loan you as much money as they can for all debt that you're paying > 5% interest. In this low interest environment, I'd love to have a note with my kid (backed by a life insurance policy) that pays 5%.
No idea when she will come back but the parents either need to let her stay for less or she needs to go. That’s dragging the situation out.
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Old 01-13-2018, 05:01 PM
 
7,898 posts, read 7,080,421 times
Reputation: 18586
I did not read all of the posts on this thread, but I read enough to see that the OP is still involved with the thread and also to get a feeling of the recommendations.


As far as I am concerned the basic problem is not being addressed. You, the OP, have substantial college loans. Did you complete college? If not, finish. If yes, you need to get cracking on your career. Trying to figure out how to live on the equivalent of $13/hour is not the issue. You need to get a decent job. You wrote several times that you like your job. I cannot imagine why. You are being paid peanuts for someone who is 30 something and has a degree. It is way, way, way past time for you to start looking for a new job and to place yourself in a career with a future.


Unemployment for jobs requiring college level skills has been under 3% for years. There are a great many fields that are booming and will continue to boom in the future. There are no excuses if you want to get ahead.
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Old 08-24-2018, 01:50 PM
 
90 posts, read 73,166 times
Reputation: 94
Hey all!


I've had this thread on my mind lately. I was in such a different place then, emotionally, than I am now. I remember typing the first post with tears running down my face.


Quick update:


Unfortunately,I'm not doing as well as I'd like, but that's entirely my fault. I KNOW what I need to do but it's really hard to actually do it sometimes. It is especially hard when I feel depressed about my situation and splurge with money I don't have.


However, myfinancial situation has changed... some.


Thanks again for all of the great advice that was given in this thread. Maybe now I'dactually heed to most of it.




I'm 32 years old and I am slowly learning how to adult.


Some UPDATED background info:


**I now have a $1500.00 emergency fund! Yay, me!

Also, I now make $2240.00 a month and I have almost $40,000 of debt.

Student Loan - $23,500 - 6.8%
Car Loan - $18,000 - 1.9%
(I have to drive a lot for work, so I needed something reliable(new).


Credit Card(Medical) - $6,000 - 0% for 24 months starting in January 2019.(Non-issue right now)



That's all concerning my debt.




My monthly expenses starting September 1st, 2018 will be:

$374.00 - Car Loan
$400.00 - Rent for parents
$$125.00 - Car Insurance
$150.00 - Gas
$150.00 - Food
$44.00 - Cell phone
$25.00 - Life Insurance
$11.00 - Gym (My parents live in a pretty rough neighborhood, so walking around outside for exercise isn't an option.)
$50.00 - Dry cleaners
$200.00 - Student Loan
$50 - MISC

I will be able to pay $800 a month toward debt, not counting the auto monthly payments, starting in September. However, I am unsure of what to pay off first: Student Loan or Car Loan. What do you guys suggest? I'm leaning toward student loan simply because I am not the best driver plus I use a lot of miles for work and I would hate to pay the car off only to have to buy a new car in a few short years.




Thanks again for all of the previous advice and for letting me stop by from time to time to update you all.
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Old 08-24-2018, 02:01 PM
 
Location: NJ
31,771 posts, read 40,511,088 times
Reputation: 24590
Quote:
Originally Posted by iShine86 View Post
I will be able to pay $800 a month toward debt, not counting the auto monthly payments, starting in September. However, I am unsure of what to pay off first: Student Loan or Car Loan. What do you guys suggest? I'm leaning toward student loan simply because I am not the best driver plus I use a lot of miles for work and I would hate to pay the car off only to have to buy a new car in a few short years.

student loan. you pay down the one with the highest interest first.
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Old 08-24-2018, 03:41 PM
 
Location: DFW
40,932 posts, read 48,909,839 times
Reputation: 54916
Unless you have kids, you don't need a life insurance policy.
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Old 08-24-2018, 04:52 PM
 
5,901 posts, read 4,394,136 times
Reputation: 13416
Quote:
Originally Posted by iShine86 View Post
Hey all!


I've had this thread on my mind lately. I was in such a different place then, emotionally, than I am now. I remember typing the first post with tears running down my face.


Quick update:


Unfortunately,I'm not doing as well as I'd like, but that's entirely my fault. I KNOW what I need to do but it's really hard to actually do it sometimes. It is especially hard when I feel depressed about my situation and splurge with money I don't have.


However, myfinancial situation has changed... some.


Thanks again for all of the great advice that was given in this thread. Maybe now I'dactually heed to most of it.




I'm 32 years old and I am slowly learning how to adult.


Some UPDATED background info:


**I now have a $1500.00 emergency fund! Yay, me!

Also, I now make $2240.00 a month and I have almost $40,000 of debt.

Student Loan - $23,500 - 6.8%
Car Loan - $18,000 - 1.9%
(I have to drive a lot for work, so I needed something reliable(new).


Credit Card(Medical) - $6,000 - 0% for 24 months starting in January 2019.(Non-issue right now)



That's all concerning my debt.




My monthly expenses starting September 1st, 2018 will be:

$374.00 - Car Loan
$400.00 - Rent for parents
$$125.00 - Car Insurance
$150.00 - Gas
$150.00 - Food
$44.00 - Cell phone
$25.00 - Life Insurance
$11.00 - Gym (My parents live in a pretty rough neighborhood, so walking around outside for exercise isn't an option.)
$50.00 - Dry cleaners
$200.00 - Student Loan
$50 - MISC

I will be able to pay $800 a month toward debt, not counting the auto monthly payments, starting in September. However, I am unsure of what to pay off first: Student Loan or Car Loan. What do you guys suggest? I'm leaning toward student loan simply because I am not the best driver plus I use a lot of miles for work and I would hate to pay the car off only to have to buy a new car in a few short years.




Thanks again for all of the previous advice and for letting me stop by from time to time to update you all.
Honestly, that’s not a bad debt load. You shouldn’t be worrying yourself sick over that. Do not think of it at 40k of debt. Think of what your current debts are. In other words due in the next year. Your car loan is so low it’s basically free after inflation. You should nearly always focus the higher interest first. So pay the student loans.

Unless you have dependents, I wouldn’t carry life insurance.

Are you able to increase your income? That seems somewhat low for a degree. Your problem is income, not your expenses. $400 per month is pretty low for housing...and it’s already under 25% of your net pay. Does your employer offer a 401k match? If so match it to the fullest amount they will give you. Also are you dry cleaning work clothes? If so, why are you paid so low?

If you don’t already, see if you can get a discount for paying your car insurance in a 6 month or year lump sum.

If you don’t already, run your expenses through a double cash back credit card like citi. Pay it off Monthly and it should net you 20 to 30 bucks. Enough to pay for your gym.

I also wouldn’t ignore the 6000 of zero interest debt if you can’t take the cashflow hit of 6k at once. Maybe start paying it down in 1k installments 6 months before it’s due.

Get in the habit of forecasting your cashflow. It’s not sufficient to just forecast expenses. You need to know your cash outlay.

Last edited by Thatsright19; 08-24-2018 at 05:17 PM..
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Old 08-24-2018, 05:05 PM
 
Location: Honolulu, HI
24,308 posts, read 9,196,739 times
Reputation: 22676
Quote:
Originally Posted by CaptainNJ View Post
student loan. you pay down the one with the highest interest first.
Not all the time. Sometimes you pay off the lowest debt first to build up some moral victories, the debt snowball method
Quote:
The debt-snowball method is a debt reduction strategy, whereby one who owes on more than one account pays off the accounts starting with the smallest balances first, while paying the minimum payment on larger debts.
To the OP, cut out the life insurance, dry cleaners, and buy cheaper food. Move out of your parents house and try to find a place where you can roommate with someone or rent out a room for cheaper than the $400 you're paying for rent. Also, you can go back to school for a graduate degree which will then place your current students loans on hold. (obviously with the assumption you'll be paying out of pocket instead of taking out more loans to pay for classes).
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Old 08-24-2018, 05:17 PM
 
5,901 posts, read 4,394,136 times
Reputation: 13416
The debt snowball method is suboptimal for people with actual financial discipline.
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Old 08-24-2018, 05:34 PM
 
90 posts, read 73,166 times
Reputation: 94
Quote:
Originally Posted by Thatsright19 View Post
Honestly, that’s not a bad debt load. You shouldn’t be worrying yourself sick over that. Do not think of it at 40k of debt. Think of what your current debts are. In other words due in the next year. Your car loan is so low it’s basically free after inflation. You should nearly always focus the higher interest first. So pay the student loans.

Unless you have dependents, I wouldn’t carry life insurance.

Are you able to increase your income? That seems somewhat low for a degree. Your problem is income, not your expenses. $400 per month is pretty low for housing...and it’s already under 25% of your net pay. Does your employer offer a 401k match? If so match it to the fullest amount they will give you. Also are you dry cleaning work clothes? If so, why are you paid so low?

If you don’t already, see if you can get a discount for paying your car insurance in a 6 month or year lump sum.

If you don’t already, run your expenses through a double cash back credit card like citi. Pay it off Monthly and it should net you 20 to 30 bucks. Enough to pay for your gym.


I also wouldn’t ignore the 6000 of zero interest debt if you can’t take the cashflow hit of 6k at once. Maybe start paying it down in 1k installments 6 months before it’s due.


Get in the habit of forecasting your cashflow. It’s not sufficient to just forecast expenses. You need to know your cash outlay.
The $6000 in debt doesn't exist yet. I haven't had the procedure done but expect to have it done in January.

I do have a degree and a job in my degree field. My problem is definitely income.
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Old 08-24-2018, 05:37 PM
 
90 posts, read 73,166 times
Reputation: 94
Quote:
Originally Posted by Rocko20 View Post
Not all the time. Sometimes you pay off the lowest debt first to build up some moral victories, the debt snowball method

To the OP, cut out the life insurance, dry cleaners, and buy cheaper food. Move out of your parents house and try to find a place where you can roommate with someone or rent out a room for cheaper than the $400 you're paying for rent. Also, you can go back to school for a graduate degree which will then place your current students loans on hold. (obviously with the assumption you'll be paying out of pocket instead of taking out more loans to pay for classes).
I would love to go to graduate school, but I don't have the time or money. It is what it is.
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