Author Topic: How to get out of debt  (Read 2657 times)

midwestdame

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How to get out of debt
« on: April 23, 2015, 08:36:14 PM »
Hi all! I'm sorry if this is a repeat post or if it's posted in the wrong forum. I'm brand-new to the site and would like any advice about how to get out of debt in a reasonable amount of time. Thanks!

Here's some info about me: I'm 27, no children and I've never been married. I live in Illinois (I don't know if there's any state-specific tips).

My situation: I've never been very knowledgeable about finances and/or savings or the ramifications of debt but I'm starting to realize how serious money is. So I'm honestly pretty naive about finances. I have about $43,000 of debt. $36,000 is spread out in student loans and the rest is small-limit credit cards (about $1,500) and a car loan (which is about $4,000). I'm planning on entering grad school next year and I'd like to get as much as possible of this paid off, although I don't think it's possible to get that done.

I work at a non-profit and only make about $10,000 per year. I'm looking for a second job or work at home opportunities.

Thank you so much for reading this. Any advice would be greatly appreciated!

RexualChocolate

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Re: How to get out of debt
« Reply #1 on: April 23, 2015, 08:40:17 PM »
This has to be a troll.

MrsPete

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Re: How to get out of debt
« Reply #2 on: April 23, 2015, 08:41:20 PM »
Get another job. 

Kiwi Mustache

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Re: How to get out of debt
« Reply #3 on: April 23, 2015, 08:45:58 PM »
Hi all! I'm sorry if this is a repeat post or if it's posted in the wrong forum. I'm brand-new to the site and would like any advice about how to get out of debt in a reasonable amount of time. Thanks!

Here's some info about me: I'm 27, no children and I've never been married. I live in Illinois (I don't know if there's any state-specific tips).

My situation: I've never been very knowledgeable about finances and/or savings or the ramifications of debt but I'm starting to realize how serious money is. So I'm honestly pretty naive about finances. I have about $43,000 of debt. $36,000 is spread out in student loans and the rest is small-limit credit cards (about $1,500) and a car loan (which is about $4,000). I'm planning on entering grad school next year and I'd like to get as much as possible of this paid off, although I don't think it's possible to get that done.

I work at a non-profit and only make about $10,000 per year. I'm looking for a second job or work at home opportunities.

Thank you so much for reading this. Any advice would be greatly appreciated!

I would firstly question why you are accepting only $10,000 for your employment. If you are a university graduate, you are obviously intelligent. You say it is a non-profit, so it may be something you are deeply passionate about and you get satisfaction out of helping people. I understand that.

However, $43,000 of debt (plus going back to study more) is not going to pay itself back only earning $10k per year.

With regards to the debt repayment, there are two options in my opinion. First is to pay off the highest interest rate first and then the 2nd highest interest rate, etc. Other option is to pay off the smallest loan amount first and then move onto the 2nd smallest, etc. Dave Ramsey total money makeover is a good book for this.

thd7t

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Re: How to get out of debt
« Reply #4 on: April 24, 2015, 07:06:26 AM »
Is the $10k net or gross?  Are you working full time?  Are you getting any government aid?

garion

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Re: How to get out of debt
« Reply #5 on: April 24, 2015, 07:15:51 AM »
What are your low limit credit card debts from? It sounds like you may be spending more per month than you are earning. The first thing to do is make sure your monthly expenses are lower than your monthly income. However, this could be difficult given your income. I would try to find a way to make more money. Don't increase your standard of living at all, use the extra money to pay back debt.

JLee

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Re: How to get out of debt
« Reply #6 on: April 24, 2015, 08:44:14 AM »
A full time minimum wage job would pay you $17k/yr.

You need a new job.