Get out of debt brehs

funkee

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officially debt free as of yesterday. car and wifey's car have been paid off for a few years, but made 1 last big lump sum/payoff payment on my med school loans yesterday. feels amazing. have been looking for our first house for almost a year, and now all cash is ours/freed up.
 

Atlrocafella

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officially debt free as of yesterday. car and wifey's car have been paid off for a few years, but made 1 last big lump sum/payoff payment on my med school loans yesterday. feels amazing. have been looking for our first house for almost a year, and now all cash is ours/freed up.
Congrats family :salute:
 

Software

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Keep at it folks. A lot of businesses are forecasting there to be sharp consumer spending pullback once summer is over.

Brehs should be locked in on bettering their finances in the 2nd half of 2022. The easy money is drying up fast
Recession is on the way. We'll have probably 3 half a point federal reserve rate hikes by September. Keep some cash available so you can buy the dips during the recession and weather the storm with savings too in case your income gets caught up too. Savings are key
 

Serious

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I've been saving like crazy, but I've been careful not to pay all my debt off at once, in case some emergency or immediate hardship came up.

But tomorrow I will be clearing up a huge chunk of debt when I get paid.

After this the only debt I should have is student loans.

My company also does tuition reimbursement, which I should be eligible for in a couple months.

Feels good to be in control of a larger share of my money again.

Currently saving / investing 57% of income, that should increase to 80% next month :wow:
 

Jcotton1

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How in the blue hell do I help a friend start paying off his loans? To help he's basically staying rent free outside of few utilities at a condo that's owned by a cousin and myself.

I also helped him a get a gig at the water department they start pay is $18. He found another one wfm with mortgage company paying 18 also. He's also in cc for Healthcare Information Technology.

What's the best option throw the kitchen sink at it every month?
 

phcitywarrior

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What's the best option throw the kitchen sink at it every month?

Just start tbh. When I paid off all my cc debt during the pandemic (before then taking on more again :francis:)

I used the snowball method. Got it from a Dave Ramsey book and it worked well.


For your boy, first thing I’d say he should do is to make a budget/track where all his money is going then save up $1K ASAP and just put it out of mind. He’s staying rent free so it hopefully shouldn’t be too hard. The $1K is so if he has an emergency, he doesn't have to use CCs and go further into debt.

From there, have him write down his debt smallest to highest in terms of amount owed. So it might be:

CC1 - $500
CC2 - $2,000
Car Note - $5,000 etc

From there, just have him pay the minimum of every card, then whatever else he has extra, just throw it at the debt with the lowest owed until completed. Rinse and repeat until he’s done.

Some might say attack the debt with the highest interest rate and that’s fine, I just like the snowball method because you get a bit of a rush when you see a debt line item gone. Gives you the motivation to keep going.

Biggest thing for him will be to trim the expenses. Any money that would have gone to rent should go to knocking out debt. Cut back on frivolous spending and use extra money and attack the debt. Idk how much he has, but if he grits his teeth and pushes, he can make significant strides by end of year.
 
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Serious

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Getting used to spending cash instead of credit has been an adjustment. Want to pay off the remaining balances on my Cap One and Discover before I even consider it again.
It's been an adjustment, but I knew I needed to make the change a few months back, when I started looking closer at my statements, then I saw how much money I was giving away every month.
 

Insensitive

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It's been an adjustment, but I knew I needed to make the change a few months back, when I started looking closer at my statements, then I saw how much money I was giving away every month.
I went ham in 2021 and got to a really high savings rate. Cleared a gang of debt.
Was saving a lot. :sadcam: Then had a rough time offline and accrued some debt again.
I'm switching back to living like a hermit lol.

Going out is cool but having long money is way better. :yes:
 

Rawtid

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I filed chapter 13 in 2019 and made my last payment last month. After the discharge it will just be mortgage ($97k) and student loans ($40k). Freed up $1600/month.

I’m going for my PMP cart and I really think with a second role I can have that debt knocked down in 12-18 months.
 
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