Another Debt scenario

[MooseBucks]

I respectfully disagree with the order after CC2 - that is following ramsey to a tee, BUT the auto loan should be dead last; it will probably be retired with the natural payment plan prior to the student loan.

Specifically, the balance on the auto loan is not much different from CC3 ($600), but the interest rate is 3.5% for auto vs 14% for CC.

X2 no way would I pay off the car before CC3.

[FoolFromAZ]

I would sell the call immediately and buy something for 2 or 3k. if I have that much of cc debt with that much high interest, no way I would keep car that is worth 10+ K.

[Outdoorsygal]

If you can get another job, even at minimum wage one day per week, you could pay off things alot faster.
If you are already at a high income bracket, maybe something under the table or a side hustle (independent contractor/business owner).
Or figure out ways to save $$ and/or make money while on the job during downtime. Something that wont' affect performance.
Just some thoughts...

[asb2012]

Ok so Thank You for the help so far i hope i am doing this right i am really wanting to get out of debt it is a real mental burden for me. Ok so here is my update since October

Debt Total $48079

Veh Loan $11563 @ 3.5% payment is $355

CC#1 $12516 @ 14% payment $256

Student Loan $24000 @ 4.2% payment $289

Income still the same $5900
Monthly Expense $4640
Extra income $1260

I still having savings of $8100 reason is my SO received bonuses at his job that we used towards the debt not sure if that was the right move or wrong thing but we did it😕 So this is where I am. I was thinking to start snowball on my vehicle first and pay it off then move to my credit card. I think that mentally it would keep me motivated knowning i would free up extra $355 in income however i onow that would not be the best move because the interest is higher on credit card 💳. What would u suggest? Also one month of extra earned income or it can come from savings has to go towards taxes.

[Jluke]

I was thinking to start snowball on my vehicle first and pay it off then move to my credit card. I think that mentally it would keep me motivated knowning i would free up extra $355 in income however i onow that would not be the best move because the interest is higher on credit card ��. What would u suggest? Also one month of extra earned income or it can come from savings has to go towards taxes.

credit card first - the balance is only $1000 more than your car loan but the credit card interest rate is going to hurt you more than the interest on the car loan. just like you said but remember:

while credit cards have a "minimum payment" you really should be paying that off each month (once you are out of debt and can manage credit wisely). that will be a better habit to form vs. freeing up $355 from the car loan. IMO.

ETA: I did a rough calculation on the CC interest - looks like you're paying around $150/month in interest right now.

[asb2012]

Very true and yes it is about $150 a month

[Jluke]

And if you continue to pay just the $256 credit card it will take upwards of 7 years to pay that off.

I imagine the car loan will be paid off before then with just the required monthly payment.

So while on paper it appears the CC has a lower monthly payment, in reality it is a very expensive debt. Funny how the CC companies don't require a higher monthly payment. They love that interest charge!

Note: I just wanted to add that detail for others who might be reading this.

[LuckyJB]

I would pay off CC#1 & #2 immediately and then quickly work on #3. You will be surprised how great the feeling will be and just eliminating it from your list. It will become addicting once you do that.

[asb2012]

Update just to keep me accountable
$47514 total

Vehicle $9928
Cc#1 12555
Student Loan $23159
Cc #2 1700

I been doing so well I paid over $10000 in debt since October however I had a set back when I found out the hubs had a credit card for $2500 I got it down to $1700 which is cc#2 my goal is to have that paid off by end of September. This has been hard but rewarding not going on vacations not spending extra money is hard but seeing this debt go down is good and has relieved a lot of my stresss hopefully I can be down to $37000 by Jan 2018

[LivingAlmostLarge]

Congratulations! Amazing work. Good work on being accountable!

[evgeniusleo]

I congratulate you!
Great.
You can do it.

[Gailete]

This has been hard but rewarding not going on vacations not spending extra money is hard but seeing this debt go down is good and has relieved a lot of my stresss

It is amazing what getting your finances under control can do to your stress level. As to vacations, remember that many Americans cannot afford to ever take a vacation, much less one each year. Our last 'trip' was when our son got married. Other than that, in 15 years of marriage - no vacations. This is our life. We can't afford them financially or physically, so we stay at home. We don't feel deprived at all. I'd rather see the bills go down.

[asb2012]

Updating for end of year
Total $40440

Vehicle 8200
Cc#1 9930
Cc#2 0
Student loan $22310

CC#1 recently updated to world MasterCard which i don’t know what that means
Or why they did that I will be below $40000 before 2018 which is exciting however i may miss my goal of being at 37000 my bonuses have sucked lately. I’m still aggressively going towards paying CC#1 off since it has highest interest at 14.2% I’m getting hit with $130 of interest a month.

[snafu]

Thank you for updating your debt payoff progress. I was surprised to see CC #1 still in your line-up. I suggest you and DH review 2017 CC, car loan and SL statements, adding up and acknowledging how much you have been paying in interest/fees since October 2016.

As the year draws to a close, I hope you and DH will hold a personal, financial, conference to gain better understanding of where your money went [2017] and name your priorities and a plan for 2018. Would you consider giving yourselves personal allowances, adding a line item for entertainment and giving every dollar a job?

A goal without a plan is just a wish.”

[asb2012]

So here I am midway through the year

Vehicle loan $5962 @ 3.5

Credit card $0

Student Loan $21531

So IRS really set us back this year. But we were able to pay them and our state taxes and property taxes in cash. We will now be going to aggressively pay off our vehicle loan with 1900 a month. However we do have $1500 in savings i would like to put that in a high yield savings account while we pay off the rest of our debt. Any suggestions on which bank to go with. I am looking at Ally. I would like to put more towards debt but DH works outside and is sent home often in summer due to heat. It’s unpredictable when he is sent home and what days so he is unable pick up 2nd job.