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08-18-2011, 06:38 PM
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Need Advice to Get Back on Track!
Hi all, I need some advice on a situation that I am about to get into.
I am a college student and school is starting back up. I receive federal loans, and this semester I will receive approximately $1,500 extra in refund for miscellaneous needs. With this money I was planning on paying down some expenses that have caught up with me. Not too long ago, I heard about Dave Ramsey's 7 Baby Steps Program which at step 1 is to save $1,000 to start an Emergency Fund and step 2 to pay off all debt using the Debt Snowball. So with this, I am wondering if I should pay off some of my debt, or put most of it in emergency fund? Thank you for your time! 
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08-18-2011, 07:19 PM
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I would say you should use 500 for debt and 500 for EF. Knowing your debts might change this.
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Marcus Tullius Cicero: The budget should be balanced, the Treasury should be refilled, public debt should be reduced, the arrogance of officialdom should be tempered and controlled, and the assistance to foreign lands should be curtailed lest Rome become bankrupt. People must again learn to work, instead of living on public assistance.
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08-18-2011, 08:31 PM
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I have a $1,000 credit card debt and a $700 title loan debt...
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08-18-2011, 08:32 PM
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08-18-2011, 10:41 PM
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You should make planning about managing your money... I would suggest you to get out of the burden of the loans first and then you will be free to enjoy your money with ease...
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08-19-2011, 01:22 AM
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In Britain the problem of Student finances in in the News.
Lots of students are already heavily in debt and the problem is going to get much worse. Tuition fees in the universities are going to be increased by a vast amount in just over a years time. So there has been a big rush to get into universities this year before the increase. Todays students have it hard.
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Scotland Accommodation
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08-19-2011, 05:31 AM
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I would suggest you get rid of that title loan as soon as you can. If you pay of the $700 title loan and use the other $300 to the emergency fund, how long do you think it will take you to get to the $1,000 emergency fund?
Last edited by LMA : 08-19-2011 at 05:37 AM.
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08-19-2011, 08:13 AM
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I think some people got confused...
you said you have $1,500, correct? So use $700 to pay the title loan and put $800 into the EF. Then add to the EF to get to $1,000. What are the "expenses that caught up to you"? If they are more debt, then pay them with $300 and keep only $500 in the EF...put that towards the CC for example.. As a student, hopefully you won't need as high an EF and with a part time job you could graduate with minimal debt. With $500 in the account, and $700 in CC, that leaves you in a better position than you started. And then head full force into the CC and any other debt (besides loans). Good luck
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08-20-2011, 06:35 AM
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