Hi all, I just want to ask for some advice. I’m considering myself extremely lucky, as I recently landed a well paying job as a university drop out. I have quite a bit of debt, and I need some help prioritizing what to pay off first while also saving some money on the side. My base salary is 50,000 per year, and I have the option of working overtime. If I work every overtime shift possible (which I’m planning to do, I want my debts gone) I can bring my salary up to 90,000 per year, which is around 1200$ per week where I live.
Here are my debts, tuition debt of $36,000 at 3.95% interest, $1800 on a credit card with 11.99%, $1300 on another credit card with 21.99% interest, and a personal loan from my mother of about $5000. Is it even smart to save while trying to pay off these debts? Or should I just prioritize paying off the debt. I would obviously have an emergencies fund (currently have $1000 set aside), but I want to be able to save for a newer vehicle or a trip next year. I have a commitment with my mother to pay her at least 500$ every month, so that’s one thing to consider. What would you guys recommend for allotment of my pay to each of these debts. Minimum payment for my student loan will be approximately 400$ per month starting at the end of July.
Finally, I don’t want to get into living a more expensive lifestyle when my base salary is 50,000. If I can’t work over time, then I want to be confident I can live off of 50,000. What is the best way, in your experience, to limit access to your own money so you don’t spend it.
Thank you!
Submitted May 10, 2019 at 12:04PM by LettuceSea http://bit.ly/2ViuEoN
