Hello PF,
Me
I'm in my late twenties and am in serious financial trouble. I'd like some help devising a plan out of my situation, please.
My Income and Monthly Expenses
I make slightly over $60K a year, and take home approximately $3420/month. I've been told I can work an extra hour and make nearly $68K and take home about $3845/month. This is not too bad on paper, but I have substantial and significant debt that I racked up in school. As of some time ago, I am not purchasing anything through credit cards of loans, but am having a hard time paying off my debt.
I pay $700 in rent, $125 in utilities, $80 for my phone, $250 for gas, $60 in subscription services, $200 for my student loans (does not cover interest), $230 for my bank loan (below), $408.05 for my car (below), $135 for my credit cards (below) (this totals $2188.05) and a variable amount in food.
MY Debt * I owe a whopping $84,453.77 in student loans, broken down here:
Type | Balance | Interest Rate
Subsidized | 4559.95 | 5.350
Subsidized | 5571.40 | 4.250
Subsidized | 5569.06 | 3.150
Subsidized | 1887.41 | 3.150
Subsidized |1013.05 | 4.250
Subsidized | 4559.95 | 5.350
Unsubsidized |3016.80 | 6.550
Unsubsidized | 2870.66 | 6.550
Unsubsidized | 2739.95 | 6.550
Unsubsidized | 878.73 | 6.550
Unsubsidized | 8172.64 |5.160
Unsubsidized | 21346.65 | 5.960
Unsubsidized | 22267.52 | 5.590
Total Balance - 84,453.77
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I also owe $8261.43 on a car, with payments of $408.05/month, and 22 payments remaining. Note: I always see everyone suggest that people get rid of their car. I need this car, and can't sell it.
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I also owe $5,972.69 in credit cards at $135/month, with (promotional rate) 0% interest.
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Finally, I have a personal loan with my credit union for $9706.20 with 53 payments of approximately $230/month
General Quesitons
Given all of this, how can I get out of this situation as quickly as possible? My idea was to attack the car loan, although it is the one with the lowest interest rate, it frees up $400 a month to pay towards all other loans. I was thinking I should focus on my student loans last, but I am not sure if that is the best way to handle this situation.
What do you guys recommend? What will save me the most money in the long run?
Student Loan Specific Questions
- Using a service like Sofi, can I and is it recommended that I refinance a portion of my student loans, specifically the unsubsidized loans?
- Would anyone here recommend that I refinance the entire loan at 20 years with Sofi? I figure with the direct loans, I'll have to wait 20 years to get them forgiven anyway and even then, the forgiven amount will be taxed. They want $620 at over 5% to refinance it for 20 years...
Submitted September 17, 2017 at 10:49PM by VelvetyBlue http://ift.tt/2x786iU
