BamaTanya Posted September 28, 2008 Share Posted September 28, 2008 We're in debt up to our eyeballs. Mortgage, student loans, auto, and credit cards. A pile of them. That's why I went back to school and back to work. It will take us a while to pull out, but that's certainly the plan. But you guys have me scared. Dh and I have a sum of my student loan money in the bank. I have (God willing!) one more semester of tuition and books. And we're holding money in reserve in case the ps situation for our ds with Asperger's goes south and we feel the need for private school. Mega $$$. Maybe that $$$ should go on the debt NOW? While our accounts are good? We don't have nearly enough to pay everything, but maybe we should pay off the car or a credit card or something . . . I worked up a rough budget draft yesterday in anticipation of my first paycheck (Tuesday!!!), but it was just a "pay-more-than-the-minimums" kind of plan, leaving that savings alone. No more robbing Peter to pay Paul, you know. But not paying off anything yet. Just starting the snowball . . . Any ideas? I'm in an interim position, so, like everyone else in the world, I don't know for sure I'll have a job next year . . . Quote Link to comment Share on other sites More sharing options...
hsmamainva Posted September 28, 2008 Share Posted September 28, 2008 I'm a big Suze Orman fan and let me see if I can remember what she recommends. I know she says to pay off first what has the highest interest rate. It's probably the credit cards (I don't believe the interest rate is high on student loans, but I may be wrong!) She also recommends looking around for a really low interest rate credit card and transferring the balance from your high interest credit card(s) to that one and then pay it off. I'll give you her website and I'm sure she has tons of info for you!! http://www.suzeorman.com I'm wishing you all the best!!!!!! You can do it!!! :) Quote Link to comment Share on other sites More sharing options...
hsmamainva Posted September 28, 2008 Share Posted September 28, 2008 Oh! One more 'Suze idea'.... she always recommends you take money out of your savings to pay off credit card debt. Her reasoning is that if you're only earning 3-5% on the money in your savings, but you're paying 18-20% on your credit cards, that's costing you more money...if that makes sense. BUT .. make sure you keep some money in the savings account for emergencies. Don't be without money in the bank -- especially not these days! Quote Link to comment Share on other sites More sharing options...
ma23peas Posted September 28, 2008 Share Posted September 28, 2008 PIck the card with the highest interest rate and pay more on that one and just the minimums on the others...just keep going at it until you can get all credit cards paid off....just think of the $$ in interest you'll be saving! Also, you can save a lot with how you drive..make sure you make a budget for gas and stick to it...easily you could burn an extra $100 without good planning. Don't be anxious...the economy has alway had it's ups and downs..this too shall pass. Tara Quote Link to comment Share on other sites More sharing options...
laylamcb Posted September 28, 2008 Share Posted September 28, 2008 Tanya, I'm about to tell you something that I've NEVER advocated before. So take it with a grain o' salt, OK? ;) This is short-term advice here, given on the basis of our current financial crisis: If you have cash in the bank, do what you can to hold on to it. Personally I'd work to keep in there what you know that you need (for school, etc.), and as much more as possible. Now, if you've got credit card debt, by all means pay off what you can. Those interest rates are confiscatory. But at the very least, call up the credit card company and negotiate as low a rate as possible. But *right now*, in *this* market, if your student loan rate is reasonable, just...keep paying on it. Keep paying your mortgage--don't worry about paying it off. Ditto the car loans. The reason that I say all this is that credit is very tight right now; you've got money in the bank and that's a great thing. Hang on to it. Though I normally advocate paying off all debt first (except perhaps a mortgage), at this crazy time, I'd hang on to cash. You don't know when you're going to see it again. :001_huh: Quote Link to comment Share on other sites More sharing options...
Melissa in Australia Posted September 28, 2008 Share Posted September 28, 2008 I would pay off debts as fast as I could. start with the highest interest one, and pay it off completely,with minimal payments on the rest. then start on the next and pay it out completely. that way you can cut down on interest that you are paying out, and you will be able to see you are getting somewhere. if you manage to get debt free. it is amazing how little money you need to live. Quote Link to comment Share on other sites More sharing options...
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