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I'm glad I found this website. Just the other day I was going to rent a bigger apartment increasing my rent $200 per month and was thinking of a getting a new car increasing my expense by $300 a month. I will be living frugally in my studio apartment with my wife and will not be getting a new car after thinking everything through. We can wait until things get better. Here is my situation and what I have done starting today. I am 28, wife is 23 and just married. Life is starting to settle down a bit. Most of the debt was accrued in the past 1-2 years by making stupid decision, mixing pleasure with business money, being unemployed for 6 months, and traveling 5 times in the last 2 years which is no longer necessary.
I have considered trying to find a new job that will bring my take home pay to close to $4,500. However, I would like to stabilize most of the cc debt first. My current job is stable and I would hate to try to find a new job to find out it isn't working out, and then be without a job.
I have considered taking out some of the money from ROTH IRA to pay off the some of the cc debt and starting fresh, but it looks like at my current situation I shouldn't. Also I will try to cut expenses and increase income.
Savings:
Roth IRA : $60K
Debt:
APR
CC 1 9.24% $11,242
CC 2 15.24% $416
CC 3 9.24% $12,501
CC 4 9.24% $130
CC 5 14.24% $9,804
CC 6 9.99% $2,216
Total $36,310
On a Monthly Basis:
Job Take Home $3,606
Variable Income $1,000
(first half of this year, variable income has been at least $10K, from today forward this amount should vary from $1000-$2500 per month but just using $1000 as base)
Total Income $4,606
Rent $964
Utilities $150
Gas $200
Food $200
Entertainment $200
Total Expense $1,714
Net Income $2,892
I know I'm missing some expenses and my variable income could increase. Lets say I should be able to have $2,700 at the end of the month to pay my cc. $2,700 x 6 months = 16,200 to credit card. By next year my wife should be working soon so that should be more income of at least $1,000
I'm hoping by the end of this year I can cut my cc debt in half and pay it all off within 12 months. Start fresh and start saving.
Any extra advice greatly appreciated.
I have considered trying to find a new job that will bring my take home pay to close to $4,500. However, I would like to stabilize most of the cc debt first. My current job is stable and I would hate to try to find a new job to find out it isn't working out, and then be without a job.
I have considered taking out some of the money from ROTH IRA to pay off the some of the cc debt and starting fresh, but it looks like at my current situation I shouldn't. Also I will try to cut expenses and increase income.
Savings:
Roth IRA : $60K
Debt:
APR
CC 1 9.24% $11,242
CC 2 15.24% $416
CC 3 9.24% $12,501
CC 4 9.24% $130
CC 5 14.24% $9,804
CC 6 9.99% $2,216
Total $36,310
On a Monthly Basis:
Job Take Home $3,606
Variable Income $1,000
(first half of this year, variable income has been at least $10K, from today forward this amount should vary from $1000-$2500 per month but just using $1000 as base)
Total Income $4,606
Rent $964
Utilities $150
Gas $200
Food $200
Entertainment $200
Total Expense $1,714
Net Income $2,892
I know I'm missing some expenses and my variable income could increase. Lets say I should be able to have $2,700 at the end of the month to pay my cc. $2,700 x 6 months = 16,200 to credit card. By next year my wife should be working soon so that should be more income of at least $1,000
I'm hoping by the end of this year I can cut my cc debt in half and pay it all off within 12 months. Start fresh and start saving.
Any extra advice greatly appreciated.
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