Author Topic: Debt Relief Fast  (Read 2689 times)

orbnitsuj

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Debt Relief Fast
« on: July 12, 2018, 06:28:54 PM »
Hi, all super new to the group and excited. I am looking for ways to get out of debt completely and am inspired. I have a 10,000 dollar line of credit that is usually overdrawn by about 1000 dollars each month and then shamefully about 1500 in credit card debt with 4 cards. From what I have read I should take my highest interest cc and start knocking that down with my line of credit each month which has a lower interest rate and then repeat for all four cards until they are gone? Any tips and advice greatly appreciated. I am ready to knock this debt out completely!

tomorrowsomewherenew

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Re: Debt Relief Fast
« Reply #1 on: July 12, 2018, 07:03:11 PM »
How much is your income each month, and what are your expenses (roughly)?

orbnitsuj

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Re: Debt Relief Fast
« Reply #2 on: July 12, 2018, 07:12:07 PM »
Earning around 5500 and expenses roughly 4800...working with ynab and tips here on how to get that down lower.

PDXTabs

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Re: Debt Relief Fast
« Reply #3 on: July 12, 2018, 07:45:59 PM »
Obviously, the biggest thing you could do is to reduce your expenses, or increase your income. Some options include taking on a room mate or moving to a less expensive dwelling.

swampwiz

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Re: Debt Relief Fast
« Reply #4 on: July 12, 2018, 07:51:45 PM »
You must live in a high-cost area to have that kind of income and still be broke.

orbnitsuj

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Re: Debt Relief Fast
« Reply #5 on: July 12, 2018, 08:39:12 PM »
Part of my expenses involve minimum credit card payments and taxes owing. It is an expensive place to live and need to be here as I co parent a child etc :) Anyone agree with knocking off credit cards one at a time and using line of credit where I can?

Sibley

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Re: Debt Relief Fast
« Reply #6 on: July 13, 2018, 07:21:37 AM »
OP, I'm going to say that instead of relying on credit, that you live within your means. No credit cards. No line of credit. Which means slash your expenses. Go to the Case study section and post a full case study. Let us look at stuff and we can give you suggestions and probably face punches.

neophyte

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Re: Debt Relief Fast
« Reply #7 on: July 13, 2018, 07:42:14 AM »
Quote from: Sibley
Go to the Case study section and post a full case study. Let us look at stuff and we can give you suggestions and probably face punches.

Definitely do this!

orbnitsuj

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Re: Debt Relief Fast
« Reply #8 on: July 13, 2018, 10:32:04 AM »
Awesome, looks like I'm going over to the case study section to take a proper beating :)

PDXTabs

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Re: Debt Relief Fast
« Reply #9 on: July 13, 2018, 10:43:59 AM »
OP, I'm going to say that instead of relying on credit, that you live within your means. No credit cards. No line of credit. Which means slash your expenses.

But if the LOC has a lower interest rate than the CCs, in the short term paying off the CCs with the LOC might make sense.

Sibley

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Re: Debt Relief Fast
« Reply #10 on: July 13, 2018, 01:00:18 PM »
OP, I'm going to say that instead of relying on credit, that you live within your means. No credit cards. No line of credit. Which means slash your expenses.

But if the LOC has a lower interest rate than the CCs, in the short term paying off the CCs with the LOC might make sense.

I was referring to the fact that OP seems unable to live within their means (minimum credit card payments and owed taxes). If you can't do that, then regardless of the interest rate, you have a problem.

Just Joe

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Re: Debt Relief Fast
« Reply #11 on: July 13, 2018, 02:55:45 PM »
Second job. Third job on the weekends. Call the CC company and get the interest rates lowered. Make sure you know when that expires so you can keep the rates down. Look for 0% interest rate card to transfer everything to.

Vows to pay everything down and then off b/c if you optimize with lower interest rates and then create new debt you're only digging a deeper hole. Also keep in mind multiple jobs means more miles on your car. Stay ahead of the maintenance so you aren't surprised with a broken car. Bikes and walking are valid ways to get around to save money.

orbnitsuj

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Re: Debt Relief Fast
« Reply #12 on: July 13, 2018, 05:22:14 PM »
Great advice, working on the second job and side hustles and going deep into budgeting and not eating out with friends all the time. I am going to crush the credit cards one at a time!