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I'm new here and would like to get some input on how to get out of credit card debt. I don't really have any good 'financial role models' in my family so I am turning to the MyFico experts. Here's my stats:
What is the best plan of action? Thanks.
Wow, buy a cheaper car!
It's a shame that we Americans are being brainwashed into believing everyone needs to drive a $20k+ car.
@Anonymous wrote:Wow, buy a cheaper car!
That was exactly my thought. Exchange that one for something cheaper.
Is that gross or net income? I have to think gross, otherwise I don't see why you could not save several hundreds per month to pay those 8k back easily.
I drive a Honda Civic which I thought was a pretty cheap car........
$4k per month is net.
@Anonymous wrote:I drive a Honda Civic which I thought was a pretty cheap car........
$4k per month is net.
I don't consider a $450 car payment per month cheap.
Anyway, with 4k net as a single home owner, you must have other money leaks than the ones you listed in order not to be able to pay those 8k down quickly.
alli71 wrote:
I'm new here and would like to get some input on how to get out of credit card debt. I don't really have any good 'financial role models' in my family so I am turning to the MyFico experts. Here's my stats:
- $8k in credit card debt
- Bring home $4k per month (single)
- Mortgage - $845/mo
- Car - $450/mo
- Student loan - $200/mo
- In my 401k I have $5k available to take out in a loan
What is the best plan of action? Thanks.
maybe you should think about a refi on your car. $450/mo is a lot! I'm not judging you, mine is $441. I'm looking into a refi. I just joined a credit union, so hopefully I can get a decent refi rate.
Again from my own experience, you will be surprised how much is spent on fast food. Starbucks in the morning, McD for lunch adds up quickly. When I tracked my spending habits for a week, I had spent $73 in fast food! Ridiculous I know. Now, I allow myself $20 for the entire week. It works for me, but good luck with you!
Are those numbers correct? $4,000 NET?
I'm making less than that thanks to the economy. My housepayment is $1,000 more than yours. My car payment is $80 more but no student loan.
I would have NO problem paying that CC debt off at $1,000 plus per month and I am a full time single parent.
What are you spending the money on? Something is missing here.
BTW, If I didn't need my truck for work, it would be sold before I would pay a $530 per month car payment. However, it is 4 miles to work & doesn't snow here so I could walk to work.......
@Anonymous wrote:
@Anonymous wrote:I drive a Honda Civic which I thought was a pretty cheap car........
$4k per month is net.
I don't consider a $450 car payment per month cheap.
Anyway, with 4k net as a single home owner, you must have other money leaks than the ones you listed in order not to be able to pay those 8k down quickly.
OK, maybe I should clarify from where I come here:
I bring roughly 2k net home every month (health insurance, some costs at work and 401k already subtracted), and I am also single. My rent is $763 per month (I like to have a bit more space ). Other fixed costs are phone, cellphone and internet ($95), electricity (about $100). I'm too lazy at the moment to break down insurances to a per month bases, but let's just assume that all this sums up to roughly $1k, which leaves me with another 1k to live on.
My one big vice is eating out. I spend sometimes more than $300 per month on this, and this would be an easy target for potential savings. A bit less easy would be moving to a smaller apartment. I could adjust some of my grocery spending, because there are often cheaper options available to what I buy. These are just examples.
At the moment, I don't really need to reign in on my spending, because I still manage to save a couple of hundred bucks per month. But I hope it helps to understand where I came from when I suggested that it should be easy for you to save enough money to pay that debt down.