Hi all, I thought to write so as to just reach out to people and hear honest opinions / (hopefully) encouraging words.
I'm 25 years old living in Japan.
Due to nothing but simple stupidity and reckless spending to keep up with glorified lifestyle and friends, I managed to compile 8K in credit card debt (one card, annual interest rate of 15%) in less than 2 years.
I make 40K a year and take home income is about 2600~2700 (USD) per month. I'm so tired of living pay check to pay check and the debt is stressing me out so much. I'm overwhelmed and scared, and would appreciate some words of wisdom and encouragement.
Budgeting (disposable income 2650) :
- Rent 830
- Utilities (water, gas, electricity, internet, phone plan) 160
- Food (groceries, eating out, coffee; I don't drink) 300
- Transportation (I live in Tokyo so this cover my commute pass & all train rides): 100
- Swim lesson 150
- Toiletries/Medical (I have a skin condition that requires certain medical /skin products): 100
- Entertainment/going out/any shopping: 200
- Savings: 250 --this includes funds for travel (I go back to my home country once a year)
- Monthly Credit Card Payment: 500
Why I am worried and what I would like advice on:
- Does my budget sound okay? Should I save less and put that on credit card payment instead?
- What would be the ideal target date to clear off all this debt? At current rate, I can be debt free in 15 months. (This is assuming my income does not change due to promotion, raise, job change, etc)
- I feel so guilty of spending money on swim lessons but this has been something I have always wanted to do (I couldn't swim and I've improved a lot with these personal lessons), and is a big help in relieving stress. Should I cut it out in order to route this money to debt payment?
- I'm really stressed out about having this debt and can't believe I made this mistake. I'm really weary of using credit card now - is it a good idea to just stop using credit cards all together?
- Is it ridiculous hoping to go on a vacation (cheap place like Thailand?) while paying off debt?
Some of these questions might sound stupid and naive, but I'm really ashamed that I made this mistake, and want to do everything in my power to fix this ASAP. I would appreciate honest opinions. Thank you!
Submitted June 12, 2018 at 09:27AM by moimoo https://ift.tt/2LHyTWI
