Hello, as the title says my 23 year old sister is currently $11,445 in debt. The total combined is from her used vehicle loan as well as credit card debt. My sister is in the process of filing for a divorce and most of her credit card debt was because she had to take out money to pay for rent, utilities, as well as living expenses because her significant other refused to do so. Now, she is moved back in at home and does not have to pay for rent or utilities, just her expenses. I tried to help her create a budget after reading the wiki, but I feel like it may not be the best because I do not have much experience as I am just a student.
My sister is paid bi-weekly receiving approximately $800. ($1600/month)
Her current fixed expenses per month are:
$100 - Car Insurance
$200 - Phone Bill (Should go lower once she takes her SO off of her plan)
$120 - Gas
Her debts are:
$8,201.84 - Credit Card Debt (Interest Rate: 12.15% / Minimum payment per month: $137.00)
$3,243.64 - Used Vehicle Loan (Interest Rate: 4.790% / Minimum payment per month: $58.24)
The budget that I tried to make for is:
1/2 month salary $800
Car Insurance - Due beginning of month (100)
Phone Bill - Due beginning of month (200)
Gas (60)
Car Loan (200)
Total left to use $240
1/2 month salary $800
Credit Card Debt (700)
Gas (60)
Total left to use $40
Giving her a grand total of $280 to use per month. I discussed with her, and she said that she should be fine with this amount as she will eliminate eating out and will be eating food at home- as well as only going out minimally. If she were to contribute $700 to her credit card debt, she would be able to pay it off in about a year and almost all of her used vehicle loan. I do not know if this matters but her credit score is about 740ish. Is the budget that I made for her ok? Or are there better ways she can go about tackling this debt? Our mom is suggesting she gets a low interest credit card rate to pay off her current credit card debt but that doesn't seem so good in my opinion... but I am not too sure as I do not have a credit card myself. Any help or input is appreciated, thank you.
Submitted July 20, 2018 at 01:41AM by 23lostinlife https://ift.tt/2LakwP3
