I've funded most of the last 5 years of my life on student loans and credit cards. I was irresponsible in college (no financial assistance from family, only worked 2 summers) and racked up debt to pay my bills. I don't foresee myself getting into a stable relationship or getting rid of this debt soon and it will be chained to me until I can pay it off.
I followed passion rather than being pragmatic about my major choice. A B.S. Geology and math minor does not leave not much opportunity for geoscientists in the current market. Can't afford going back to school.
Can someone please advise me out of this personal finance situation- because I foresee a world of pain if my habits aren't fixed. How bad is my financial situation and how can I get out of it? Any advice on how to generate additional income?
I need to learn to live frugal before this debt catches up to me. Best frugal tips?
Income (3400/mo salary after taxes, not counting bonus or RE/side job): Just started a new job after being unemployed for 4 months with a financial advising company a few weeks ago. Here are some details on my package:
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50,000/yr base salary. 7500/yr bonus potential.
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50% employer match up to 401k max (9.5k/yr) vested in 3 years.
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Employer paid premiums for dependents/employee on vision, disability, dental insurance.
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4 weeks PTO. M-F 7A to 5P work schedule.
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I also have an active TX real estate license. I have sold four million in real estate to an investor client last year before they left the market, so I know I can feasibly do 1-3 transactions this year (extra 6k-25k). Am I better off trying to search for a waiter job or something that can make 15-18$/hr on the weekends?
Debts (66-70k in debt)
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8500 on 0% credit card until Nov 2018 (200/mo payment)
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4400 on 0% credit card until Apr 2018 (150/mo payment)
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5000 at 19% on a chase credit card (150/mo payment)
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7000 IRS Tax Debt for 2017 - need to work out the payment plan (forgiven scholarship/student loan treated as income) (will be coming up soon)
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12000 at 2.3% on a 2016 Jeep Cherokee (243/mo payment).
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28000 Federal Student Loan Debt at 5% interest (350/mo payment)
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2000 other debt at 10%
Expenses: (2500-2600/mo) Does not include upcoming IRS debt
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300/mo for food, going out, and entertainment >>> going to start packing lunch and eat out once a week as a treat
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500/mo for rent+cable+internet
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60-80/mo for utilities
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100/mo for gas and tolls
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125/mo for work clothes and dry cleaning budget (finance job)
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243 Car Payment
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350 student loan payment
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600 minimum credit card payments
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250/mo toiletries/supplies misc expenses
Assets:
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3500 in 401k account
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2000 in checking account
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2016 Jeep Cherokee with 23k miles (worth maybe 14k. owe 12k on it).
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Gun + macbook + gold I can sell for 2k-3k if I get really desperate.
Thank you so much for your help!
February 11, 2018 at 07:49AM
