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21 Year Old Business Owner Seeking Advice

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Money Talk > Personal Finance

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AJP2014
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21 Year Old Business Owner Seeking Advice  Reply with quote  

Hello everyone!

My name is Austin and I started my first business when I was 14 years old. I still own and run the business today! The business has done, and is still doing really really well, however, I have made some financial mistakes that I am kicking myself in the face for.

I currently have right under $50,000 in debt which I should have never accumulated. However, this scares me and I want to get rid of it completely. The business itself produces about $100,000 a year income for myself, but I am having to help my mother pay her bills as in October of 2015. My father walked out on her and I leaving her with the bills and a job that can't cover everything. No need to feel sorry as the situation has helped us grow both as people and I know that everything happens for a reason.

Since I am having to help pay both my bills, and my mothers bills, its making it very hard to attack this debt and start saving for retirement and start to set up more investment accounts because I am being bled dry each month.

I really want to set up Investments and put it into SP500 Index funds, but without the extra cash at the moment, I can't do this. I am willing to do whatever it takes to get rid of all of this debt and get a nice portion of money saved so I have a security net.

Please advice me on what I should be doing. The $50,000 in debt consist of roughly $25,000 in a car loan, and $25,000 in credit cards. I am not worried about getting the car loan paid off as quickly as I am the credit cards. They have a higher interest rate, and thats whats killing me. I think about each month what it would take to pay off all of my debit within a year for the credit cards, which is only $2,000 or so monthly to have them paid off in full in a year. I used to have that extra sitting around until I had to start helping my mother. Now, its a struggle to get the minimum payments paid.

I look forward to any advice that you can all lend to me, I am truly appreciative!
Post Wed Mar 29, 2017 3:58 pm
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oldguy
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quote:
but I am having to help my mother pay her bills as in October of 2015. My father walked out on her and I leaving her with the bills and a job that can't cover everything.


One answer is to change "walked out" to "formal divorce" - that way the courts will direct your father to provide a lump sum to your mother (1/2 of the family's net worth) plus a monthly alimony check. That will relieve you of paying you parent's bills.
After that, pay your Mom a small amount for rent, help with the groceries - and apply the lion's share of you $100,000/yr to the $50,000 debt - pay the revolving consumer debt first. And if the car loan is at a low rate (<5%), keep that loan for the full term - 5% is a good rate to pay for the use of capital.
Post Wed Mar 29, 2017 4:31 pm
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AJP2014
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They did get a divorce, but my father left the home to my mother as her and I needed a place to live. So we did not take alimony or make him pay anything to her for that reason.
Post Thu Mar 30, 2017 3:31 am
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