Need a plan to get out of debt

[nursejlb]

Hello all,

I am new to the mustache community (the boyfriend sent me this direction).  I'm truly motivated to live debt free, but I'm not quite sure where to start.  Here is some financial background about me:

I have about $6000 in credit card debt, I currently owe $1000 in medical bills (will be paying these off this week), about $35000 in student loan debt (currently in a BSN completion program so that amount will increase and I am planning on going to grad school either for nurse anesthesia or nurse practitioner).  I pay $65/month for car insurance, $180/month for phone bill (my mom is on my plan), $40/month for pet health insurance, $45/month gym membership, $370/month for student loans, $50/month for internet service.  I will begin leasing an apartment next month for $960/month plus approximately $40/month for electricity.

I am a registered nurse.  I am finishing a travel contract at the present time, but plan on staying in the area and finding a permanent nursing position.  I'm making about $900 a week on this assignment.  I don't have much for savings.  Just under $4000 in a Vanguard traditional IRA.

Thanks for your help,
Jamie B.

[MDM]

nursejlb, welcome to the forum.

You might take a look at http://forum.mrmoneymustache.com/ask-a-mustachian/how-to-write-a-%27case-study%27-topic/.  It mentions things (e.g., interest rate and term length on loans) that are missing from the OP.

A quick look at the numbers is below.  Appears groceries are missing?  Cell phone bill is high, even for 2 people.  If the CC debt has some ridiculously high (say, >8%) interest, the only thing that would take precedence is contributing to get a 401k match.

Anyway, take a closer look at things, update as needed, and you'll likely get some useful advice.  Good luck!

Category	Monthly	Comments	Annual
Salary/Wages for person #1	$3,900		$46,800
Federal Total Income	$3,900		$46,800
Federal tax	$397	2015 rates, S, stand. ded., 1 exempt.	$4,764
State/City tax	$116	Guess, using 4.00% * Fed. Taxable	$1,394
Soc. Sec.	$242	Assumes 1 earner paying	$2,902
Medicare	$57		$679
Total income taxes	$812		$9,738
Income before other expenses	$3,088		$37,062
Monthly Average Expenses:
Rent	$960		$11,520
Car Insurance	$65		$780
Electricity	$40		$480
Internet	$50		$600
Pets	$40		$480
Phone (cell)	$180		$2,160
Sports/Recreation	$45		$540
Non-mortgage total	$1,380		$16,560
Loans:
Student Loan	$371		$4,455
CC	$143		$1,713
Total Expense	$1,894		$22,728
Total to invest	$1,195		$14,334

[N]

First you have to identify all of your spending.
Second, you question each expense-can it be eliminated? delayed? reduced? Once you have your expenses optimized to their lowest amounts, then:
Third, you commit to a payoff plan for your debt. Throw all your extra money at the debt. It comes before vacations, clothes, eating out, entertainment, etc.

Are all of your utility bills as low as they can be? Have you comparison shopped prices for insurance?

Your cell phone bill can be greatly reduced. I use Airvoice and our cell usage costs us less than 15$/mo for 2 users.

Your rent seems high for one person. Can you find a less expensive apartment or take on roommates?