| NEED HELP [Paycheck to Paycheck] |
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THETRUTH
New Member
Cash: $ 0.65
Posts: 3
Joined: 16 Mar 2005
Location: THE757AREA
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| NEED HELP [Paycheck to Paycheck] |
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IM IN THE NAVY NO KIDS NO RESPOSIBILITIES BUT LIVING PAY CHECK 2 PAY CHECK.TRYING TO GET FINIACIAL FREEDOM HOW DO I START.
I MAKE 2900 A MONTH AFTER TAXES.
MY BILLS ARE
CAR NOTE 6900 @6.9% 356 A MONTH
LOAN 1900@ 26% 185 A MONTH
LOAN 1500@ 4.5% 125
BALLYS 660@ 18% 62 A MONTH
STORE CREDIT CARD 3600@10% 101 DOLLARS A MONTH
RENT 640
RETIREMENT 40 DOLLARS A MONTH I JUST RECENTLY TOOK IT DOWN TO THIS TOPAY OF MY DEBT FASTER. I HAVE NO MATCHING CONTRIBUTIONS FOR THIS.
IS THE BEST PLAN FOR ME IS TO PAY OFF MY HIGHEST CREDIT CARD FIRST.
ALL RISK
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Wed Mar 16, 2005 5:25 pm |
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xboxundone
Senior Member
Cash: $ 67.83
Posts: 796
Joined: 19 Sep 2004
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make the minimum payments on everything except the highest interest rate. Pay it off them roll all the dough into the next highest and so on...
If you company doesnt match your 401K don't contribute you are better off paying of your debt if they don't match.
Order you should pay them off
LOAN 1900@ 26%
BALLYS 660@ 18%
STORE CREDIT CARD 3600@10%
CAR NOTE 6900 @6.9%
LOAN 1500@ 4.5%
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Wed Mar 16, 2005 5:36 pm |
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titus_87
Member
Cash: $ 2.81
Posts: 13
Joined: 31 Jan 2005
Location: northern idaho
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| debt reduction |
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if you want to get out of debt you need to save. but before you can make that happen you need to start reducing the amount of bills you have to pay. one way of doing this is to start a debt snowball. the way it works it you put all your extra money ( cut out junk food and cable t.v) towards just one of your bills, start for exmple with the smallest. if you are able to take a part time job, put all THAT income towards the first debt. you get the point.as soon as that debt is paid off; all the money you had been paying towards it is now added to the payements made on the next debt you want to pay off. and so on. because you are able to live off what you normally live off, you will be able to stay afloat untill all your debts are payed off. because you used the snowball, they get payed sooner, and as soon as all your debts are payed i sugest you put at least 75% of the amount you were paying out monthly into a savings account.
the reason i sugested starting with the smalles payment was because you would be able to pay it off sooner. but you might also want to start paying on the one with the most interest. a morgage, for example would have a lot of unwanted intrest. good luck and keep up the good work!
titus
sleep on IT!
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Wed Mar 16, 2005 5:42 pm |
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THETRUTH
New Member
Cash: $ 0.65
Posts: 3
Joined: 16 Mar 2005
Location: THE757AREA
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| THANX |
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YES I THINK IM GOING TO LIVE BROKE FOR A LIL WHILE AND PAY OFF THE BALLYS IN ONE IN ONE TRY THEN GO ATTACK THE 26% LOAN.
ALL RISK
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Wed Mar 16, 2005 6:56 pm |
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Rolo
Yo' Daddy
Cash: $ 309.70
Posts: 1551
Joined: 13 Mar 2005
Location: Colorado/Florida
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quote:
Originally posted by xboxundone
make the minimum payments on everything except the highest interest rate. Pay it off them roll all the dough into the next highest and so on...
If you company doesnt match your 401K don't contribute you are better off paying of your debt if they don't match.
Order you should pay them off
LOAN 1900@ 26%
BALLYS 660@ 18%
STORE CREDIT CARD 3600@10%
CAR NOTE 6900 @6.9%
LOAN 1500@ 4.5%
Precisely.
After you pay these off, you can put that $473 (or $839 counting car payment) into your TSP.
Make a financial schedule (budget) on a spreadsheet to see how much you can put toward your debt, the faster the better. Use calculators online to see how long various amounts will take.
You can also consult a credit consolidation agency, such as genus.org. They do what xboxundone said, but they may be able to negotiate and lessen those outrageous rates.
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Wed Mar 16, 2005 11:29 pm |
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gdrumm
New Member
Cash: $ 0.80
Posts: 4
Joined: 18 Mar 2005
Location: Texas
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| Need Help |
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quote:
Originally posted by xboxundone
make the minimum payments on everything except the highest interest rate. Pay it off them roll all the dough into the next highest and so on...
If you company doesnt match your 401K don't contribute you are better off paying of your debt if they don't match.
Order you should pay them off
LOAN 1900@ 26%
BALLYS 660@ 18%
STORE CREDIT CARD 3600@10%
CAR NOTE 6900 @6.9%
LOAN 1500@ 4.5%
I agree with this concept except I would pay off the lowest balance first. The reason is that if you snowball your debt reduction you're going to pay off the debt so quickly that the interest rate isn't really going to matter.
So I would pay it off in this order:
Bally's - $660
Loan - $1500
Loan - $1900
Store - $3600
Car - $6900
Since your 401(k) is not matching, take the $40 a month you've been putting back and apply it to your debt.
So, you'll make your regular payment on Bally's plus the $40. When that one's paid off, you'll make the regular payment on loan 1500 plus all of the money you were paying on Bally's, plus the $40 and so on.
Once you've got them all paid off, since your 401(k) isn't matching your contributions, I'd open a Roth IRA and fund that to the maximum each year. Once you're reached the maximum I'd split the remaining money... 1/2 to your 401(k) and 1/2 to an emergency fund.
Once your emergency fund has enough cash to cover 6 months of living expenses, roll all of that excess into your 401(k).
Gary Drumm
PlaytimeToPaytime.Com
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Fri Mar 18, 2005 11:23 pm |
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