Need advise. Please help.

**sweeps** · 02-05-2008, 11:20 AM

What about the other $500+/month in income? What is that going towards?

Your credit cards probably need to be higher priority than your student loan. Pay off the $1500 card first and that frees up an extra $60 a month that you can pay off the other credit card. Then put that extra $160 to your student loan.

Can you get extra work during the summer?

**Scanner** · 02-05-2008, 11:47 AM

Agree w/sweeps - retire the c/c debt and then roll that monthly payment into your student loans.

Summer work will be key - work 60 hours/week in the summer if you have to and have that go towards debt reduction. You should be able to earn $6000 per summer, I would think, even if it's waiting tables, checking beach badges, etc.

**maat55** · 02-05-2008, 03:11 PM

You could get rid of the cable and cell. You should also be able to earn extra money as a tudor after hours or some other part time job. Like scanner and sweeps said, get rid of the CC debt first then move to the SL.

Are you able to get a room mate? Deliver pizzia's at night. If you purpose yourself to reduce debt, you will find away to do it. Try reading Dave Ramsey's book The Total Money Makeover at your library, it will give you much to think and use.

**Lindahfx** · 02-05-2008, 03:12 PM

Can you get a bundle for TV, internet and cell phone? You may be able to reduce something there.

I agree with the others... focus on your cc's first. Then your student loan.

**disneysteve** · 02-05-2008, 05:47 PM

Just another vote to focus on the CCs, not the student loans. Don't go by the balances. Go by the interest rates. Can you list those for us?

Certainly, you can cut back to basic cable (about $10-$15 in most places). That would free up $60 or so to put toward the CCs (and later the student loans).

You also list expenses that are $725/month less than your take home. I assume some goes for food, clothing, gas, etc., but probably not over $700. Where is the rest?

**lovcom** · 02-05-2008, 10:46 PM

Originally posted by msucurt View Post

Ok, Ill try and make this short and sweet. Basically, here is the rundown of me and my financial situation....

age: 33
status : single
job : high school teacher/coach
education: masters degree
income: take home = $2,700/month

investments:
Roth IRA : contribute $100/month to a life 2030 retirement fund. (tiaa cref)
403B : contribute $100/month to a life retirement fund (trowe price)

bills:
mortgage: $850
condo fees: $235
student loan: $360
light: $75
tv: $75
cell: $80
internet: $50
car insurance: $90
credit card #1 : $100 (with $5,000 balance)
credit card #2 : $60 (with $1,500 balance)

basically, I just need to know what I can do to knock down my student loan payment ( i have a $60,000 balance). I have consolidated. I am to the point of working for the peace corps to get this paid for. I teach in a school district that i may can get relief from, but im not sure of that yet.

I want to invest more, but my hands are tied. I guess i am going to have to pony up and cut some of my costs (cell phone, tv, internet, etc). Maybe just go with basic tv, basic phone, dialup, etc)

Im working on paying off my cc so i can start saving for an emergency fund, but seems i can only tread water and get no where and it is really frustrating.

anyone in my situation that has dug out?

You have a very honorable career as a teacher, and I really respect that. But you picked a career that does not pay, and you will always be underpaied through your career. Please don't take this the wrong way, but my advise to you is to get out of teaching. Get into something that will make you 2 or 3 times more money, and provide you more options in your life. You only live once, and since most of us have to work for most of our lives, we may as well choose something that pays decent coin. Your problem is not too many bills. Your problem is too little income. Get out there and start getting what you're truly worth.....leave the teaching to the rich idealistic bleeding heart liberals, whose trustfund provides for their every need...you only live once ;-)

**cptacek** · 02-05-2008, 10:55 PM

Originally posted by maat55 View Post

You should also be able to earn extra money as a tudor after hours or some other part time job.

I don't think the Tudors would allow her to join their family (groan)
Tudor dynasty - Wikipedia, the free encyclopedia

sorry, couldn't resist.

I agree, though, that a summer job is important in this situation. It kind of irks me that teachers complain that they get paid so little but have a huge fat 3 month vacation plus a huge fat Christmas vacation plus a huge fat Spring Break plus personal vacation. However, I don't want to get in to that argument here cause I could have it with my mom and sister in person. I know, I know, they have the most important job in the country, indoctrinating our children, but facts are facts, they work about 75% of the year, so the salary SHOULD reflect that. I can feel the hate mail coming.

But in this particular case, I think you should work during Christmas break, work during Spring Break, work in the summer. Pay off the debt from highest interest rate to lowest interest rate.

Also, you might want to find a roommate if you have an extra room you could rent out. That would halve some of your expenses.

**msucurt** · 02-06-2008, 06:57 AM

Originally posted by cptacek View Post

I agree, though, that a summer job is important in this situation. It kind of irks me that teachers complain that they get paid so little but have a huge fat 3 month vacation plus a huge fat Christmas vacation plus a huge fat Spring Break plus personal vacation. However, I don't want to get in to that argument here cause I could have it with my mom and sister in person. I know, I know, they have the most important job in the country, indoctrinating our children, but facts are facts, they work about 75% of the year, so the salary SHOULD reflect that. I can feel the hate mail coming.

But in this particular case, I think you should work during Christmas break, work during Spring Break, work in the summer. Pay off the debt from highest interest rate to lowest interest rate.

Also, you might want to find a roommate if you have an extra room you could rent out. That would halve some of your expenses.

First of all, let me make this clear....I am not complaining. It also "irks" me when people that are not in the teaching profession always go to this one quote "it irks me when i hear teachers complain about this that and the other.....etc...etc..". Until you teach/coach and put in well over 80+ week like I do, then please dont say what irks you.

Now that is out of the way. I would love to get a roomate to help with expenses, but my girlfriend is living with me and does not help with mortgage, bills, etc. She occassionaly helps with dinner or what-not, but that is it.

Secondly, I am going to have to reduce some of my "luxury" bills (i.e. cell phone, cable, internet).

Also, I am going to get a job this summer and work consistenly 40+ hrs/week.

Bottom line is that i have to get the cc paid off and go from the ....kind of snowball this debt. I just dont think i will ever get these student loans paid off.....seriously is killing me every month, but im going to find a way

thanks for the tips and suggestions

**atomicrc11** · 02-06-2008, 07:08 AM

You do have your girlfriend living with you rent free. How much in food/electric/rent and other costs is she costing you per month? You may want to ask her to contribute as well. If you have a large enough place for two people to live, but you aren't wiling to charge her rent, maybe you have too large of a house? You will eventually dig out of it, you just need to watch your spending and stick to your budget.

**disneysteve** · 02-06-2008, 07:48 AM

Originally posted by msucurt View Post

my girlfriend is living with me and does not help with mortgage, bills, etc.

Is she employed? If so, why is she not splitting expenses? You are struggling to make ends meet and dig out of debt. You can't afford to be supporting her and she shouldn't expect you to.

**Joan.of.the.Arch** · 02-06-2008, 07:51 AM

Originally posted by lovcom View Post

.....leave the teaching to the rich idealistic bleeding heart liberals, whose trustfund provides for their every need...you only live once ;-)

I imagine you are just being sarcastic. Do you really think there are such people who want to be teachers?

**Scanner** · 02-06-2008, 08:31 AM

A couple of points. . .teaching ain't that bad. You get guaranteed raises and I have never seen benefits to match what a teacher gets, unless you are a state employee. Plus, yes, the time off - just take advantage of that. I know how hard it is the first 2 years - yes, my wife taught for a year and 60 hour work weeks weren't unusual but. . .she still worked in the summer at a parking lot near the boardwalk. But as you become a vet/get tenure, you'll be able to minimize your extra-curricular time.

Now, the girlfriend. . .guy to guy again. . .you haven't bought the cow, you're getting the milk admittedly but I don't that that entitles her to free room and board. I mean, where does she get her money, health insurance, etc? I mean, by her being there, she has put you in a position of unable to obtain a roommate.

I mean. . .I have been married for awhile. . .but what happened to same sex roommates sharing expenses and then the girlfriend/fiancee sleeping over for some hanky-panky? Am I old-fashioned? Is this idea out of vogue? I mean. . .you may as well be married, guy to guy here.

Third, I don't what the term is on your student loan, how far you financed it out but don't discount an extra $160/month + $6000 per summer/Christmas, etc. - it will pay down principal on the front end of the amortization table quickly. Remember too. . .student loan interest is deductible, at least a portion of it so this why we want you put the consumer debt in your sites.

Finally, don't knock teaching all of you knuckleheads. . .I know I want it to be my golden parachute.

**msucurt** · 02-06-2008, 08:44 AM

Originally posted by Scanner View Post

A couple of points. . .teaching ain't that bad. You get guaranteed raises and I have never seen benefits to match what a teacher gets, unless you are a state employee. Plus, yes, the time off - just take advantage of that. I know how hard it is the first 2 years - yes, my wife taught for a year and 60 hour work weeks weren't unusual but. . .she still worked in the summer at a parking lot near the boardwalk. But as you become a vet/get tenure, you'll be able to minimize your extra-curricular time.

Now, the girlfriend. . .guy to guy again. . .you haven't bought the cow, you're getting the milk admittedly but I don't that that entitles her to free room and board. I mean, where does she get her money, health insurance, etc? I mean, by her being there, she has put you in a position of unable to obtain a roommate.

I mean. . .I have been married for awhile. . .but what happened to same sex roommates sharing expenses and then the girlfriend/fiancee sleeping over for some hanky-panky? Am I old-fashioned? Is this idea out of vogue? I mean. . .you may as well be married, guy to guy here.

Third, I don't what the term is on your student loan, how far you financed it out but don't discount an extra $160/month + $6000 per summer/Christmas, etc. - it will pay down principal on the front end of the amortization table quickly. Remember too. . .student loan interest is deductible, at least a portion of it so this why we want you put the consumer debt in your sites.

Finally, don't knock teaching all of you knuckleheads. . .I know I want it to be my golden parachute.

Well, after thinking this over, I am going to have to ask the gf to help out more in terms of the mortgage, bills. It just isnt fair for her to live rent-free and bill-free. I even hate to bring this up. I am usually a very nice guy, but i feel i am being taken advantage of in a sense. I have been with her nearly 3 years. I am thinking about marriage, but until she gets her career settled and consistently works 40+ hrs week, then i dont want to jump into marriage unless i know that she has her career down and can provide.

I just have to start whilttling at these credit cards and get that out of the way....then to step 2.

Do any of you think i should stop contributing to my roth IRA ($100/month), until i get my cc paid off. Or should i contribute this no matter what.

thanks

**CubsFan23** · 02-06-2008, 08:56 AM

I'm a teacher as well. Try to take advantage of all the little "extras" that your school offers: Saturday detentions (perfect time for lesson planning and easy $$), taking tickets at other events/games, work maintenance for the district during the summer, teach a summer school class, administer the ACT (easy $100), etc. These are great opportunities that can quickly add up.

Another point: Once I got married, our household income practically doubled. You've GOT TO start charging your girlfriend rent OR get a roommate. Think of the lost opportunity cost of the money you're not using to pay down debt just so your sweetie can live w/you for free!

Need advise. Please help.