Due to my irresponsibility and depression over the past 8 years I've ended up barely able to make it month to month and with a low credit score. Looking at my finances was just too scary and confronting for me (and still kind of is). I recently got hired for a new job with higher pay and it gave me the motivation to want to finally get everything in order. Here's the situation:
- Currently my wages are being garnished at my current job due to defaulting on my student loans and not answering the phone every time the collection agency called. Finally stopped avoiding this and actually took a look at the letter they sent me about the garnishment. Owe $41700. The garnishment takes $942.50 from my monthly paycheck.
- Monthly paycheck is $4240
- After taking off the garnishment and taxes, medical, etc. I am left with $2380.43
- Rent is $1100 (live in the Bay Area)
I started working my new job this week on a part-time basis (basically doing work for them at night after work) until I have completed my last two weeks at my current job. My last day at my current job will be next Friday, the 17th. Here's the details of the new job:
- All of my payments will be through bitcoin. My part-time paycheck on the 16th will amount to $1350, to be deposited to my bitcoin wallet. My full paycheck, which I will get every 1st and 16th of each month will be $2700 (so $5400 per month). I can opt to switch my payments from bitcoin to dollars any time I want.
- Current plan is to convert enough bitcoins from my pay into dollars just to cover my bills and daily expenses. The rest will stay in my bitcoin wallet and (hopefully) continue to grow as an investment. Going to keep a close eye so I can pull it all out in case bitcoin goes south (don't think it will happen anytime soon, but who knows). Still trying to figure out the whole situation about capital gains taxes and how that will apply, but as far as I know as long as I keep a log of my pay and claim it as self-employment income then I should be able to write off a bunch of my expenses. Any advice on this is welcome.
Other important info:
- Credit score is 574. Mostly from my defaulted student loan payments going to collections and then to garnishment.
- $195 in collections
- No credit cards. Didn't think I'd be approved for any anyway since my score is so low.
- Currently pay $74 in subscriptions
Any tips on how I can get rid of my garnishment, pay off my student loans, improve my credit score, and just overall have better finances?
Submitted November 09, 2017 at 05:59AM by SSJZoroDWolverine http://ift.tt/2yiKbdD
