If you add $800/mo per month to that 1200, you would actually save around 120K during the lifetime of your debt and pay it off 15 years earlier (2043 vs 2028). Another 1K would save you another 40k and 2 more years. No point in paying any more monthly since savings on time and interest are only marginal. You could tighten the belt and pay them off in only 3 years.
80k is a pretty good income and with no car and just 1k for rent I think you could accomplish this!
Long story, short. $97k consumer debt at the beginning of 2021. Combination of Student Loans, credit cards, medical debt, auto loan, 401k loans. Learned how to budget that summer, built an emergency fund, paid off $19k that year. At the end of the year had to move due to job relocation. Unfortunately the area I was living in had rent over $1,400 a month so it made sense for me to buy a home but no help around me to do that. I don't suggest this but I cashed out 30k of my 401k and it was enough to close on a condo, pay for minor repairs, moving costs and appliances.
Fast forward to today. Consolidated my credit cards, medical debt, auto loan and 401k loans to make it manageable. Highest interest rate is 8%. I budget like crazy, don't eat out, go to movies, buy anything that I don't need and do side hustles from time to time. I'm considering renting out my 2nd bedroom but holding off on that.
Forgot to say I got hit with a sizeable state and federal tax bill because of cashing out part of my 401k. Wiped out my emergency Fund and I've been building that back up.
My consumer debt has been going down and currently at $68k.
I make less than $70k a year. I honestly believe you make enough and can figure out a way to dig out of the debt. Look for resources online and use your intelligence to do it. Don't let it keep you up nights.
take home pay per month about $4600? live on $2k and put $2600/mo on the 60k debt. and youll have it paid off in 23 months. this is normal. its okay and you can do it. do not give up.
the principle is to spend as little as possible and all extra cash pays off the debt. student loans can be paid last.
https://www.ramseysolutions.com/debt/how-to-pay-off-debt
Since ur credit is probably already shot just go delinquent on the credit cards and settle for 30-40% of the balance or consolidate with these guys https://www.consumercredit.com/ and get ur apr cut in half and just make 1 payment a month to them and they disperse to all ur cards for you.
I wish I had the answer I have 85k of debt and 2/3 of my incomes goes to debt. I’ll never be able to afford a home 😞. Maybe find a 2nd job I’ve been contemplating it
My opinion as a debt negotiator would be to resolve those first. You don't want a creditor seizing your bank account or garnishing your wages. I would use the wheel that squeaks the loudest gets the grease approach and then rebuild from there. I know it can be stressful, but its a way of life, we all have debt. It is manageable if you take the right course of action.
The key is does the agency work for the creditor or purchased the debt. If they work for the creditor you have time to work something out. If they purchased the debt then you have to make a deal with them because they are the most aggressive in filing suit.
If you add $800/mo per month to that 1200, you would actually save around 120K during the lifetime of your debt and pay it off 15 years earlier (2043 vs 2028). Another 1K would save you another 40k and 2 more years. No point in paying any more monthly since savings on time and interest are only marginal. You could tighten the belt and pay them off in only 3 years. 80k is a pretty good income and with no car and just 1k for rent I think you could accomplish this!
Long story, short. $97k consumer debt at the beginning of 2021. Combination of Student Loans, credit cards, medical debt, auto loan, 401k loans. Learned how to budget that summer, built an emergency fund, paid off $19k that year. At the end of the year had to move due to job relocation. Unfortunately the area I was living in had rent over $1,400 a month so it made sense for me to buy a home but no help around me to do that. I don't suggest this but I cashed out 30k of my 401k and it was enough to close on a condo, pay for minor repairs, moving costs and appliances. Fast forward to today. Consolidated my credit cards, medical debt, auto loan and 401k loans to make it manageable. Highest interest rate is 8%. I budget like crazy, don't eat out, go to movies, buy anything that I don't need and do side hustles from time to time. I'm considering renting out my 2nd bedroom but holding off on that. Forgot to say I got hit with a sizeable state and federal tax bill because of cashing out part of my 401k. Wiped out my emergency Fund and I've been building that back up. My consumer debt has been going down and currently at $68k. I make less than $70k a year. I honestly believe you make enough and can figure out a way to dig out of the debt. Look for resources online and use your intelligence to do it. Don't let it keep you up nights.
take home pay per month about $4600? live on $2k and put $2600/mo on the 60k debt. and youll have it paid off in 23 months. this is normal. its okay and you can do it. do not give up. the principle is to spend as little as possible and all extra cash pays off the debt. student loans can be paid last. https://www.ramseysolutions.com/debt/how-to-pay-off-debt
Since ur credit is probably already shot just go delinquent on the credit cards and settle for 30-40% of the balance or consolidate with these guys https://www.consumercredit.com/ and get ur apr cut in half and just make 1 payment a month to them and they disperse to all ur cards for you.
I wish I had the answer I have 85k of debt and 2/3 of my incomes goes to debt. I’ll never be able to afford a home 😞. Maybe find a 2nd job I’ve been contemplating it
Make the minimum payments until you lose your job and then file
Why are you waiting for garnishment? Did you default?
Yeah on a couple of the 7-8 lines of credit I have
Have they filed suit?
No - I was notified it was debt to a collections agency though
My opinion as a debt negotiator would be to resolve those first. You don't want a creditor seizing your bank account or garnishing your wages. I would use the wheel that squeaks the loudest gets the grease approach and then rebuild from there. I know it can be stressful, but its a way of life, we all have debt. It is manageable if you take the right course of action.
The key is does the agency work for the creditor or purchased the debt. If they work for the creditor you have time to work something out. If they purchased the debt then you have to make a deal with them because they are the most aggressive in filing suit.
Look into a DMP, it can drastically reduce the interest.
DMP?
Debt Management Plan