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Please Help Define my Goals

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Please Help Define my Goals

If you're in the garden thread you may have seen I'm having some trouble defining my goals and my reasoning of being there. I wanted to write a post outside of there in case it gets a little to close to app talk. 
 
In all honesty, I started gardening in order to pay down my debts to $0. My problem is that I'm not very good with long term goals so I need short term goals to break it up. I know that each card I pay off is a "goal" but it doesn't feel that way and just feels like movement along with that long term goal. I really want to get to the bottom of this flowchart from Reddit (https://www.reddit.com/r/personalfinance/comments/4gdlu9/how_to_prioritize_spending_your_money_a_flo...). My main problem with both paying everything off and this flowchart are some major things that are blocking me. 
 
Each semester I have to pay a large amount towards school somewhere to the tune of 2.5k-3.5k. I would totally take out a student loan but because I'm living with my parents I'm only offered unsubsidized meaning I have to pay interest the second I take out the loan. This would leave me in more debt than the way I'm doing it now. I want to pay off all my cards before they get out of 0% but thanks to my student loan not recognizing I'm in school full time it won't go back into grace. I requested it get updated three months ago and nothing. It's a small loan of 1.5k with 3.6% interest. 
 
Now my problem; with adding those two factors from school (1.5k loan and 2.5k-3.5k each Jan/Aug) and the CC debt I'm in I don't really know the best way too hit my goals. Here is a list of my current balances and the dates the 0% on them ends:
Discover: $952  July 2020
BBP: $1581 June 2020
R+: $958 October 2020
 
I also have a 0% offer on a balance transfer on my Citi DC for 18 months if that would help. What would be the best way to pay this all off, create an emergency fund of at $1,500, and pay off school every semester. My income is $1,700 a month. Only other bills are phone at $90 a month and a car at $410. Yes I know I messed up in using the 0% offers and probably will never again. Please help.

New Accounts: 13/6 15/12 16/24 oops
I think I got all I want...

Message 1 of 12
11 REPLIES 11
Super Contributor

Re: Defining My Goals

How much are you able to put towards your credit cards? Can you live off $100 a month in spending money?

 

Honestly the priority needs to be paying off any revolving debt so that you don't end up paying interest charges later. I would tackle that before thinking about starting a savings but others may disagree with me. It's much easier to hit goals one at a time than work on them all at once and it's extremely easy to get behind on credit cards and end up in a pit. 

What you want to do first is figure out how much you can put towards your debts and go from there. 


01/2019:
10/2019:

Hover over my cards to see my limits!
Goal cards: Cash+, Freedom.
Message 2 of 12
Senior Contributor

Re: Defining My Goals

Yeah, you want that CC debt gone.  Once you've payed the monthly minimum on each card, I'd pay as much as you can towards whichever of the June- or July-ending intro rate cards has the higher rate after the 0% rate expiry.  Then attack the other card.  Then the October card.

 

Then save.

 

Did I say that you want the CC debt gone?  Yes, you do.

Cards: Ample. Income: Adequate. Credit: Abundant.
INQs: Excessive. Last INQ: Infant.
AoOA: Adult. AoYA: Infant.
AAoA: Almost optimal.
0/6 | 3/12 | 9/24
All scores above 825.

On the wagon.


Message 3 of 12
Super Contributor

Re: Please Help Define my Goals


@ToxikPH wrote:

... but because I'm living with my parents...

Discover: $952  July 2020
BBP: $1581 June 2020
R+: $958 October 2020


 My income is $1,700 a month. Only other bills are phone at $90 a month and a car at $410. 

Please help.

This is very doable, and it might sound harsh, but I promise you, I've got the best of intent.

 

If your income is $1,700 per month, and your expenses are $500 per month, that's $1,200 per month that you can be using to reduce your debt.

 

...and you do NOT have to be even THAT tight...

 

Month #1: Pay OFF Discover.

Month #2: Pay OFF R+

Months #3&4: Pay OFF BBP

 

Come January, pay your tuition with whatever card has the lowest APR and/or a zero percent offer.  (Perhaps pick up a new card in January?)  Then do the math to pay in full before tuition is due again.

 

I live in a different position in a similar household.  I'm the Dad that is allowing my adult child to live here rent free so long as she is a full time student.  I am NOT paying for her education, but I do provide room and board at no cost.  She should graduate in 2021 debt free.

 

This is very doable.

 

You can do this.

 

...you just have to decide that it's important to you. 

 

Best of luck!  Smiley Wink

10/01/19 Fico 8: EX 717, EQ 721, TU 742.

Zero percent financing is where the devil lives...
Message 4 of 12
Moderator

Re: Defining My Goals

I would certainly work on paying down the credit card debt before it gets out of hand.  From experience I can tell you that once you reach that point, it can become a nightmare to live with.  You have also amassed an enormous amount of new credit in a short period of time, so I would concentrate on aging your profile, whether that is setting a goal to make it to an AAoA of 2 years or getting below 5/24.

 

Consider setting some goal cards that you want that might force you into your goals.  And when it comes time to pay your tuition and fees, maybe that is the right time to step out of the garden by getting a new card with a 0% introductory APR on new purchases - but only if you're confident that you can pay off the balance prior to the expiration of that offer, otherwise you're going to saddle yourself with even more longer-term debt.  But I know you do travel, and perhaps using some SUBs to pay for travel you would have paid for anyway might be helpful and also allow you to stretch out those tuition and fee payments.

 

Like I said, you've amassed a lot of credit really quickly.  Give your profile time to recover and you're going to have a fairly thick profile by the time you graduate and the world will be your oyster when it comes to choosing cards that are best for you.


Message 5 of 12
Senior Contributor

Re: Please Help Define my Goals

 

Well, looks like you have had some great advice,

so I don't have much to add except this;See the source image

 

Message 6 of 12
Valued Contributor

Re: Please Help Define my Goals


@M_Smart007 wrote:

 

Well, looks like you have had some great advice,

so I don't have much to add except this;See the source image

 


I kinda hate you a little bit for posting this.

Signed,


Management

03 Oct 2019


Garden goal: keep on keepin' on
Usually a faithful practitioner of AZE5or6or7; working on AZE1or2 and grumbling about it.
Message 7 of 12
Valued Contributor

Re: Please Help Define my Goals

oops, wrong thread Smiley Wink

03 Oct 2019


Garden goal: keep on keepin' on
Usually a faithful practitioner of AZE5or6or7; working on AZE1or2 and grumbling about it.
Message 8 of 12
Community Leader
Mega Contributor

Re: Please Help Define my Goals

Wrong thread @calyx 

EX 759 EQ 774 TU 753


Message 9 of 12
Valued Contributor

Re: Please Help Define my Goals


@Remedios wrote:

Wrong thread @calyx 


Smiley Embarassed

03 Oct 2019


Garden goal: keep on keepin' on
Usually a faithful practitioner of AZE5or6or7; working on AZE1or2 and grumbling about it.
Message 10 of 12
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