So I know it seems like a lot but but it’s not really that bad as I make all my payments but this is how it is
I recently had a surgery back in October and even with insurance it was not cheap. I racked up about $18k in medical bills and I have a car payment that I owe $19k on.
So here’s my question I get paid weekly 2 checks go to debt and the other 2 go to household bills on the first check I pay 3 cards 2 minimum and one I pay $200 on which is well over the minimum and that leaves $100-$200 for savings and I currently have $800 in savings which is one weeks worth of pay.
My question is should I keep doing what I’m doing making the minimum on my cards and paying extra on the one ( I am snowballing the payments) and continue putting money into my savings every month or take what I would be saving and use it on paying on the cards as well.
Thanks in advance.
I’m about $40000 in debt and need some thoughts ?
byu/dekabreak1000 inpersonalfinance
Posted by dekabreak1000
5 Comments
Follow https://www.reddit.com/r/personalfinance/w/commontopics
nclc.org and nfcc.org they have resources on these questions
The reply from the other guy with the attached link is very sensible advice.
the best thing you could do to help 1) you, and 2) us help you, is to figure out your exact budget. What’s coming in, gross and net, and what comes out.
Frankly it doesn’t matter if one paycheck goes to whatever and another does whatever. Just organize it so you know what dollar amount is going to each place each month. Since things like interest are assessed monthly, that’s your metric.
Snowball is supposedly better psychologically. Avalanche has always been better psychologically because why would I choose to pay debt less efficiently if I don’t have to?
Once you’ve got everything listed. Again, pen and paper, or a spreadsheet. Every account, every interest rate, every balance. You have to list it to know how best to tackle your debt. Then, if you want us to help you with specific steps, share that detailed list with us!
And then lastly, if you aren’t paying debt as fast as you like, you either need to spend less or earn more. That might mean taking on more responsibility at work if you’ll be compensated for that, taking a side job, gig work, etc.
Hide your assets in a convoluted and opaque overseas shell corporation that cant directly be linked to you and then declare bankruptcy