I’m a 21-year-old full-time college student who makes, after taxes, roughly $500 each week. My current monthly expenses total $510, which includes my car payment and the insurance premiums for several of my siblings. I owe $2.1k on one credit card and $2.3k at 27% on another, for a total of $4.4k in credit card debt. Is there any way I can pay this off before it reaches an absurd sum?
There are not many bills on you. then it will be easy for you to repay this. You earn $500 every week. That comes to $26,000 annually. The annual payment on your car is $6,120. Car insurance plus a portion of your sibling’s auto insurance is the only other expense you have. It would be helpful if you could let us know how much your annual auto insurance premium was, let’s say $3,000. You will then have $16,680 every year after that. That means you will have an extra $320 per week. After deducting gas costs, your weekly income remains approximately $300. Your credit card debt will be settled in six months if you make 800 monthly payments.
Each person’s car insurance costs $140. I pay for my car insurance plus one of my siblings’ insurance policies each month, or occasionally I pay for my car insurance plus two of my siblings’ insurance policies. As I mentioned in a previous response, I presently assist my father with his bills, and he asks for a certain amount of money every month a few times. As a result, my monthly bill budget is incredibly unpredictable.
Indeed.
Not much can be said because so much is left unsaid, but your expenses equal one-fourth of your income. How are the others doing? You’re either overstating your income or understating your costs.
Keep tabs on your spending, make a decision on what matters most and what doesn’t, and don’t tell yourself lies.
That’s the portion that I find the hardest to handle, then. My father was earning a solid living from his job, which he lost suddenly. The salary at his new job is far less than what it was at his previous one. He so begs me for arbitrary sums of money each month to assist him pay his expenses and mortgage. However, I simply need to pay for gas, auto insurance, and car payments for my specific needs.
I recommend trying envelope stuffing.
It works just like it sounds: take an envelope and label it “Credit Cards.” Right after each paycheck, put in $20, $50, or $100. That money is spent and should be considered unavailable to you, your siblings, or your parents. Hide the envelope if needed—it’s important to keep it out of sight, even from yourself. The key is “out of sight, out of mind.” You only take money from the envelope to pay off the credit card.
The more you pay down, the quicker you’ll eliminate the debt.
Since you’re 21, if envelope stuffing works for you, keep paying that “bill.” Instead of using the cash, consider depositing it into a separate savings account that isn’t visible when you check your regular account. Seeing the money on your screen makes it easier to spend. A $500 purchase on a card doesn’t feel the same as a $500 cash purchase.
With the volatility of your family’s income, you are unable to address your debt issue. Assist your family, but let them know that it’s placing you in a difficult financial situation.