Feeling clueless

[La viajera]

I'm new to this whole thread posting, but have been reading the advice on the site and thought I'd ask a few questions myself. I feel quite lost when it comes to finances and could really use some sound advice. I am a single 26 year old, with about 1,000 dollars in CC debt, and 20,000 in student loan debt. I have been living in Spain for the past two years on a government grant, and am returning in two weeks to teach English for a year. Therefore, I don't have much money saved up, and will not be making a lot of money during the next 10 months. My friends back at home live quite a different lifestyle than I do (big cars, houses and TVs), one that I am honestly not really interested in. But, I am starting to feel the pressure of needing to save for the future and retirement, especially since travelling is an integral part of my life.

Because I don't have a 401k yet, I have been thinking about opening an IRA, and just putting 50 dollars in a month, while paying off my CC debt and student loans (which are consolidated at a 3.6% interest rate). Is this a good idea? Also, I read on another post about having CC debt transfered to 0% APR. How does one do this? I feel like I need to start saving, at least a little bit, but am not sure what the best route is.

Many thanks for any advice!

[Ima saver]

Yes, you really should open up at roth ira as soon as possible. Auto transfer of $50 a month is good too. To get the 0% APR, you usually have to get an offer in the mail. I just got one yesterday. Maybe when you move back here, you will receive an offer.

[TBH]

La viajera, welcome to the forum. I think your ideas are very good.

Even more important than paying off debt is to stop accumulating more debt. You are in good shape, with only $1000 in consumer debt. You should stop using the credit card completely, unless you have the discipline to only put as much on it as you know you can pay off at the end of the month.

I think your plan is good to start saving a little and focus on paying off debt. Before you start a Roth, though, you should probably start an emergency fund so that you won't be forced to fall back on credit cards again for that last-minute plane ticket, etc. So I would say figure out how much you can spare each month, and divide it between your CC debt and your emergency fund (use an online high-interest savings account).

Once you have a minimal E-fund, say $1000, then start a Roth.

This would be my plan of attack. Others will have different ideas.

Also, I hear you on the travelling thing. I did a lot of travelling in my early 20s (but not enough, alas). Now I'm in my late 20s and I'm "settled" (house, LT relationship, kid, career). I definitely think it's great to travel and work low-paying jobs for a while, but you might want to actually think about getting a higher-paying job at some point. I'm not saying you have to be like your friends with the big houses. Just think about getting a job with health insurance and a retirement plan at some point.

Of course, you can also decide that being mobile is more important to you than anything else. Then I think you have a hard (but not impossible) road ahead of you. I respect that you're not waiting to face your financial situation until some indeterminate future time when you get a "real job". You're still doing the expatriate thing, but you're thinking about debt reduction and retirement saving. If you can maintain those two priorities and continue to travel or take temporary international jobs, more power to you.

[sweeps]

I agree with Claire -- make sure you get some cash in a high-yield savings account first. (Suggestions) Then get started as soon as possible on the Roth IRA.

[LuxLiving]

La viajera -

Go to bankrate.com and see what kind of 0% credit card offers they have available. I believe it will depend on your credit score what interest rate you are eligble for - probably each lender's requirements are slightly different.

Meanwhile, have you tried calling your CC company and asking them for a rate reduction on your interest?? I'd try that first.

Then yes, start an Emergency Fund and get started on your IRA.

Are you totally freelance and not working under some non-profit group? If you work for a non-profit then you might be eligble for a TIA-CREFF (sp?) account which is for non-profit employees.

Congratulations on thinking about this early. Just remember some of those peers are building themselves a guilded cage to live in...while you are off exploring the world!!

[scrava]

wow! at least you are thinking about what you need to do. what fun it sounds like you have been having! That's what your 20's should be about!!
I agree with the poster who mentioned that you should save up an emergency fund. Perhaps you can stay will family or get a roommate to help with your cost of living once you are back?