I need serious advice here. I need to figure out what I'm going to do, but I need some help. So I'll start this post with a summary of my debts. If you need additional details about any of them, just say so (I tried to keep it short). Then I'll summarize my budget, my living situation, and what I think my options are.
This is a summary of my student loans as of July 28, 2017. I am two months behind on the Perkins account, and I have never made a payment on the Parent PLUS account (roughly $1,700 in interest was capitalized on the PLUS loan on July 31 so I don't know how much I owe or what my payments are).
| Type of Loan | Balance | Interest Rate (* = weighted avg) | Minimum Payment |
|---|---|---|---|
| Federal Perkins | $4,554.52 | 5.000% | $49.93 |
| Direct Stafford | $28,134.64 | *4.564% | $0 (REPAYE Plan) |
| Parent PLUS | $33,179.55 | *7.203% | $392.99 |
| Private Student Loan | $4,252.74 | n/a | Still need to set this up |
I had 3 credit cards back in college and maxed them all out. They were all charged off. I received a notice in the mail last year for one of them, saying something about a litigation department, so I set up 12 monthly payments to pay off the entire balance. I made the final payment in August of this year. So now I only have two cards to pay off:
| Credit Card | Balance | Minimum Payment |
|---|---|---|
| Card 1 | $2,534.66 | Still need to set this up |
| Card 2 | $1,320.81 | Still need to set this up |
For both cards, I have the choice to either pay off the entire balances or pay the settlement amounts. The settlement amount can be satisfied either with a lump sum or with monthly installments. If you need the exact details, just ask (same with the loans).
I also owe my university $5,338, and I have no idea how much the payments would be, if I could even make payments. This account has been delinquent since May 2016.
I also owe someone $590 for helping me a couple of years ago with rent and utilities.
The income is what I made before I got fired. I worked 40 hours per week doing overnight stock at a grocery store, making $11.00 per hour. The minimum wage where I live is $9.00.
| Income/Expense | Monthly Amount |
|---|---|
| Income | $1370 |
| Phone | $48 |
| Car Insurance | $92 |
| Gas | $15 |
| Pharmacy | $10 |
| Hygiene | $12 |
| Perkins Loan | $49.93 |
I currently live with my parents, and have been since May 2016, which is when I dropped out of college. My budget for most of the past year included a monthly payment of $288.50 for a charged-off credit card, a monthly payment of $108.65 for a loan (finished paying it off in July), and a monthly payment of $304.97 for the Direct Stafford loans (before being put on the REPAYE plan). So I didn't have money for rent. The only insurance I have is my car insurance, and I'm under my parents' plan. However, I will have to start thinking about buying insurance for myself when I turn 26, right? I also don't have any savings. No emergency fund. Nothing. Should I start budgeting for these things? Or any other things?
The only way I would be able to live anywhere besides home is if I joined the military and lived on base since everything is paid for (right?), and just use my paychecks to pay my debts. If I stay living at home, I want to pay my share of the bills. My goal though is to pay off all of my debt as quickly as possible. This means I need to increase my income, decrease my expenses, or both. So my options are either to live at home or join the military, get a job that pays well, or get two jobs. My decision to join the military would also be because I need to reacquire discipline and also to find a fulfilling job, if I can. I have no passions really and I have no idea what I want to do with my life. I don't have my bachelor's degree, but I was like 30 credits away from getting it before I quit school. I am pretty limited as to what jobs I can choose from in this town, which is another reason I've been considering the military. Also, although I continue to make poor decisions, I am actually pretty intelligent. I would score high on the ASVAB, and this would land me a decent paying job in the military, right?
So, all that said, what should I do? Slave away while making nearly minimum wage and stay living at home? Or join the service and still probably slave away with probably similar wages? And how should I be prioritizing my debts?
Submitted November 01, 2017 at 05:36AM by aaeoinaef http://ift.tt/2z2zakq
