#FinancialAdvice #DebtManagement #MovingOut
Hey everyone! π I recently landed a new job making over $135k a year and I’m faced with the decision of whether to move out of my parents’ house into a new apartment. Here’s a breakdown of my finances and debts:
– Credit Card 1: $7.9k/$8k at 18% APR, $200/month
– Credit Card 2: $23.9k/$25k at 16% APR, $400/month
– Cell Phone Bill: $138
– Car Payment: $487 (owe $25.8k)
– Car Insurance: $251
– Gym Membership: $99
– Student Loans: $13.8k, $225/month
– Savings: $5k
Considering all these expenses, am I stretching myself thin by moving into this apartment with a rent of $1900-2000 a month? I could really use some advice on how to proceed wisely. Any thoughts on what my next steps should be?
Here’s one possible solution that comes to mind:
1. Prioritize paying off high-interest debts like Credit Card 1 and Credit Card 2 first to reduce monthly payments and save on interest.
2. Evaluate your budget and see if there are any areas where you can cut back or save money (e.g., gym membership, cell phone plan).
3. Consider setting up a payment plan with your student loans to make them more manageable.
4. Build up your savings as an emergency fund to cover unexpected expenses.
What do you think? Any other suggestions or tips for managing debt and making smart financial decisions? Thanks in advance for your input! π€π°
If you don’t mind what field are you in?
I mean if you donβt hate your parents and thereβs no rush to move out, why donβt you pay off those credit cards before getting the apartment?
I personally would stay home until the credit card debit is gone. If you stay home, you can throw ~5k/month at those two loans and have them payed off in ~7 months. That will free up 600/month permanently to throw at other debt and start saving, plus save you a ton of money on interest in the long run.
You can technically afford to move out, but given that waiting just 7 months would put you in such a better financial position, waiting would be a smarter move.
Thatβs a lot of debt for someone whoβs only 25 and $5K to their name.
Moving out means youβre going not going to be paying off those high APR CCs for a long time.
I actually moved to Virginiaβ my son lives in my house-
No I will not sell because my kids need a play to liveβ¦.
Times are hard
APR on the cards is not the worst, but still high.
Youβre missing the APR of the car, Iβve seen some insane things.
Break out a spreadsheet and make a budget for both cases, with a variation for how much fun money you want. Donβt forget that you will be paying more for groceries when living alone, not to mention moving costs and whatever furniture you may need.
Also, only _a bit_ closer to the job? Not seeing much arguments for the apartment here TBH.
I wish I was still living with my parents! π If you could sacrifice one year living with your family, and pay off those consumer debt, that is the way to go! By the time youβre ready to move out, you wonβt have any consumer debt and you can invest in yourself!
For your financial health, stay.
Pay your high APR CC asap.