Everyday I see on reddit that people are in debt and unsure how to overcome it. I was the same way and have tried all the methods I've seen and just kept getting further and further into debt. Now as an analyst for a government company, I see a lot of wasted money and have to figure out how to stop the bleeding for them, but never could do it for myself...
My debts included (not including student loans because I will die with those...) $12k auto loan @ 9.94%, $22k in credit and store card ~22-24%.
My credit score hung around 600 on a good day so I know many of you will understand the high interest rates.
I'll put this in step by step form so if you want to try it out, it may make things a bit easier.
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Get you income amount after taxes (the amount on your check), subtract all your expenses (rent/mortgage, insurance, food, gas, utilities, going out money, etc) and overestimate that, never underestimate or you will be charging back to credit. It's best to break these expenses down weekly or bi-weekly, depending how you're paid. ALSO STOP BUYING USELESS SHIT.
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Take the remaining money (after tax amount - left over money from expenses): ex. $500/wk - $350 expenses = $150 free money.
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Now get a breakdown of all your account balances and the interest rate for each account and put them into an excel spreadsheet (column A put the balance, column B put the balance, column C put the interest rate), if you are not good with excel you can handwrite this all out and use a calculator.
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In column D you need to find the daily interest rate (%interest / 365) you should get a number like 0.000627
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In column E you need to find the monthly interest you are getting charged (first get the balance x the daily interest in step 4. second multiple that number by 31) ex. for $2200 @ 23.7% you are paying $44.36 a month in interest.
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Once you have done this for all accounts, you will see what you are paying each month in interest, now take the highest number and pay your $150 free money to that card.
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Update your spreadsheet with the new balance and do this week after week. Pay ONLY the highest balance down. If you have another card due, pay the minimum and deduct that from your free money and pay the rest to the highest monthly interest card.
I did this for 6 ish months now, and pay about $400/week and have got down from over 32k to 16k. A did get a couple thousand back from taxes and that went right into it too. Also my credit score is now up to almost 700. So I plan to refinance my car at a much lower rate...
Good luck and remember that you can overcome debt, took me 6 years to find a job where I had some extra cash but now I plan to be debt free by the end of 2018.
TLDR; Had $32k in debt, paid all my extra money to accounts I paid the most interest every week, now down to $16k in less than a year.
Submitted May 26, 2017 at 01:27AM by NoceurMec http://ift.tt/2rndcoO
