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Take a look at my situation, input welcome

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    Take a look at my situation, input welcome

    Hello all,

    Here is the summary of my situation:

    Currently I am back in college. Here are my loans:

    Total DIRECT STAFFORD UNSUBSIDIZED $2,300 6.8% interest
    Total DIRECT STAFFORD SUBSIDIZED $2,529 --In deferment not accruing interest regular interest 2,9%variable
    Total FEDERAL PERKINS $1,574 --5.0% interest(min payment 43$ a month (still paying on this one)
    Total direct stafford unsubsidized fall 2013 to be added this month $1,000---6.8% interest
    Total All Loans $7,403

    Other debt:

    Credit card $2,614--0%Interest til 6/14

    Misc cards about 135$ I will pay off at the beginning of the month

    Income:

    Currently receiving spousal/child support: 2619$ a month (1488 is spousal support which will end November 2014)
    80$/month side nursery job. Due to the large amount of support I receive I do not qualify for any federal assistance food stamps, childcare assistance, health care etc.

    I have one more class I need to take spring 2014, I do not have the exact cost but it is through a local community college so much less than my other classes, expected cost 500$ for class and books

    Car is paid for, I rent my duplex, been working on cutting back my expenses (switched to straight talk, cancelled a couple memberships and just freed up about 100$ a MONTH doing that.

    I have 1000$ in savings atm. I plan to get that back up to 2000$ in the next couple months as it was only depleted to pay for college classes.

    I estimate I have about 500$ a month, maybe as much as 700$ I could use to pay off my debts and build my savings.

    I am getting certified to teach English at the secondary level. I am going through an alternative route program which may make it a bit more difficult to find a job right away, so I want to plan for the worse and hope for the best so to speak. I would like to have as little debt and as much savings as possible once my spousal support ends.

    Wanted to add I have 2 children ages 2 and 7 and obviously am divorced. I have no family nearby to keep my kids for cheap or free and the father works extra long hours and has them only 1 day a week plus 1-2 evenings for about 3 hours, which makes finding any extra job that will offset childcare nearly impossible at this time. I tried to find a job for 8 months and the amount I would be making with commuting and even with exh paying half the childcare would not be worth it for me to work. I was only offered 4 jobs in 8 months and the hours or pay would not work for my family.

    My main questions 1) which debts to tackle first
    2) given my situation, how much of the extra 500-700 would you set aside for savings?

    ETA: as far as jobs go, I am working on building my resume through volunteering and my side job at the church, and I plan to either do sub work or become a teachers aid/para if I do not land a teaching job fall 2014. By that time my 2 year old's cost for childcare will go down a bit since she will be preschool age. I also decided to not continue with classes for the Master's program next spring/summer and only take the classes needed for the licensing program. I do not want to spend more money on college classes without a job lined up.
    Last edited by MamaBird06; 08-09-2013, 06:38 AM.

    #2
    Even though the credit card is at 0% until 2014, I would start paying it down -- if interest rates were hire, i would say place it in a bank account until you needed to pay it off, but with them so low, it's probably not worth the hassle. Once that 0% rate expires, it will likely be large, so that would be the first debt to tackle in my opinion.

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      #3
      I guess if I were you, I'd be working. I know you say it doesn't offset the daycare, but the earned income credit from the IRS will. I grossed about $20,000 a year working part time when my kids were small and I got about $5,000 tax refund almost entirely comprised of EIC. If you work during the school day, you're only paying daycare for 1. I think working now will increase your chance of finding a job after you're done with school.

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        #4
        It would be helpful to understand how you disperse $ 2,700. monthly income. Is every dollar being used as effectively as possible?

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          #5
          In my opinion, paying off your credit cards and the student loans should be your priority. You should always note that you cannot get rid of the student loans unless you pay them off. They cannot be discharged even in bankruptcy filing. As far as credit card debts are concerned, once the 0% interest rates get over, the rate of interest will become extremely high which will make it difficult for you to pay off.

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