Learning, Sharing, and Teaching > Case Studies

26 Year old, $30k debt roasting

(1/17) > >>

Ocon:
Mustache_Wallace here and ready to enter into the fight for freedom. First obstacle in the way is a debt emergency. Here's the stats:

Age: 26
Single, 3 Roommates

Student loans:
Loan 1
--Outstanding balance: $7,744.64
---Interest: 6.550%
Loan 2
--Outstanding balance: $21,015.86
---Interest: 5.960%

Total Debt: $28,760.50
Minimum Payment: $400 split between the two loans

Revenue:
Job: ~$3,000/month

Expenses:
Rent/ Utilities: $600
Phone/ Car Insurance: $200
Groceries: $300
Gas: $150
Gym: $20
Xbox/ Netflix: $21
BoA Fee: $12
Misc: $75

Total: ~$1378

Apparent monthly payment able to put towards debt: $1622 (4x current payment)

Cash on hand: $8,033.41

Initial target: 20 months to freedom (based off of half of income put towards loan)
Strategy: Pay off the smaller loan as fast as possible, then attack the larger loan

Let the roast begin!

Mustache_Wallace

Paul der Krake:
Your car expenses are way too high. Phone should be $25 at most, which means you are spending $175 on car insurance. Either you are over-covered, or you own a car that's well beyond your means, or you are/were a terrible driver. Which is it?
$150 in gas PER MONTH? Either you own a ridiculous car, or you drive way too far to work, or you just like going around town for no reason. Which is it?

$12 per month in banking fees? It's dead simple to avoid fees. Direct deposit, minimum requirements, or switch banks altogether. That's $144 per year that you don't have. Why are you wasting it?

Snow:
Considering your other thread about your nightlife/going out habits, where is that in this budget? Misc?

$300 for groceries for a single person? You should be able to cut that down to $200 easily, in addition to everything Paul der Krake pointed out.

pumpkinlantern:
Also consider any possibility of freelance/part-time work to supplement your income.

Ocon:

--- Quote ---Considering your other thread about your nightlife/going out habits, where is that in this budget? Misc?

$300 for groceries for a single person? You should be able to cut that down to $200 easily, in addition to everything Paul der Krake pointed out.
--- End quote ---

It's not in the budget anymore.

Navigation

[0] Message Index

[#] Next page