I have about 10k in credit card debt (2 cards), 5k in a family car I needed. My monthly income is 3,200 and pay 912 just in bills not including food, gas, or any inconsistent bills. What would you recommend?
Chat GPT said to pay minimum on both cards and at the end of the month pay 1,200-1,500 on one card and then when paid off pay the next one. Then after both are cleared spear head the car payment and clear of debt. Any tips?
Edit: SCRA is applied on all my debt already
E-4 15k debt chat gpt setup a budget
byu/Spare_Art_6760 inMilitaryFinance
Posted by Spare_Art_6760
2 Comments
Lower your spending and all extra cash goes to the highest debt. Then like chat gpt said the money that was going to the paid off debt helps pay off the next highest debt. What chat gpt is recommending is known as the debt snowball/avalanche.
See if one offers a free interest transfer to pay one off early with a lower interest rate. May help to transfer both to a debt consolidation plan and just never use credit cards again until you’re certain you can pay them off every month.
Minimum payments on the car until both credit cards are paid off. If you get deployed you can use scra for lower interest rates. Don’t get frustrated, you’re in a boat that many people have been in before and got themselves out of. If you use your tax return and focus on for six months you can definitely pay everything off. You may have to do a side job for a few months but people do it often in the service