21 yr old needs advice!!
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| Mon, 04-13-2009 - 10:43am |
Hey everyone... I need some advice.
I'm a 21 year old full-time student. I also have a full-time job and bring home about $540 home every two weeks. I just ended a relationship with a guy who helped me run up near $10,000 in credit card debt. I accept full responsibility for letting it happen, I just want to get out of it now. I've moved back home with my parents, and my bills, etc. are as follows:
$100/ mo. to my Mom for past debts (owe her $400)
$100/ mo. in gas (commute to and from school and work)
$150/ mo. Wellsfargo CC
$30/ mo. to Chase Visa
$30/ mo. to another Chase Visa
$30/ mo. to Discover Card
$90/ mo. to cell phone
$50/ mo. misc. (cat food, my snacks, etc.)
EDIT: $25/mo. goes into a savings account
I do my best to pay more than the minimum payment on my credit cards. Now that I don't have a power bill or house payment or even have to pay for food, I feel like I'm in a better position to pay this off.
What do you suggest? I admit that after coming out of this relationship I took some extra money to "spoil" myself because I felt that I deserve it. I am over that now and just want to SPOIL myself by getting the heck out of debt.

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You're a smart cookie for 21.
Norma
"Patience is the best remedy for every trouble"- Plautus
Ok, step by step, most of which is taken from the Dave Ramsey method, but altered to your full time student and living at home status:
1.
Thank you so far everyone!
-Kels
I truly forgot about Christmas! Thank you! I am going to get a Christmas fund account... I usually do! Thank you for the reminder : )
That will prevent any reliance on credit cards once December rolls around! (Or knowing me, the day after Thanksgiving :) )
-Kels
Aww, you are on your way, and sometimes we need steps to outline things (I have a pea brain, and am pretty bad when it comes to needing charts and lists.)
Good to hear about how you treat your parents - you might share your plan with them and ask them to help keep you honest.
Thank you everyone!! I'm well on my way (mentally prepared) to conquer this!
-Kels
Sounds like you have a plan.
I'm currently 25, and wish that I'd had the sense to start my journey out of debt at 21.
Only one thought tho - have you contacted Discover to find out when the 0% runs out. I'm not totally familiar with interest rates in the US since I don't live there, however I'm guessing you aren't too keen on getting bitten by a large interest rate jump when or if the 0% offer expires. If it has an expiry on the 0%, then personally I would aim to have the card paid off by that time.
You bring up a really good point........ what if they hit me with a crazy 20-something %? That would be horrible.
I just looked at my online Discover Card online and it said my "anniversary date" is 7/09 (meaning I'll have it one year in July this year). So.... my assumption is that the 0% is probably out the door then. I could call on this later, but I'm sure this is the grace period.
I think the Discover Card should be at least second priority. (Thoughts?)
-Kels
In the process of targeting a bill Study the statement first. As the bills come in line them up and compare how the company figures their interest and by how much they figure it percentage wish on a daily balance.
It is totally amazing to me that if you take two card statements with the same balance almost and the same interest
Thank you, Mary Ann!
I don't know if it's annoying that I answer every post, but I like to process the info and it's all been great advice.
I'll print off my statements online so I can get a good look at them. I never even really thought of that.
Yeah the cell phone does seem high... it's a basic minute/message plan for a single line from Verizon. It's the lowest I can go (400 minutes).
-Kels
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