Hi Money Minder,
I’ve found myself in a bit of a pickle with about 6k worth of debt. Most of it is on credit cards, but I also owe 1k to a friend. I just snagged a job at a hotel making 15 bucks an hour, but I’m hoping to land a higher paying gig soon. Unfortunately, the restaurant scene in my area is dead over the summer, so it’s slim pickings until September. My monthly expenses are around 800 at the bare minimum.
My top priority is that 1k due at the end of the month. If I don’t pay up, I’m out until spring semester. After that, I plan to tackle my credit card debt starting with the highest interest rate card first. My credit score has taken a hit due to high credit card utilization, and it’s stuck in the low 600s right now.
Feel free to ask me anything to get a better picture. Thanks a bunch in advance for your advice!
TLDR: I’m young, financially clueless, and drowning in 6k of debt while making 15 bucks an hour. What’s the game plan?
Farewell,
Financially Challenged
Response from THE MONEY MINDER:
”Hello There,”
I’m sorry to hear about the financial challenges you’re facing. It’s great that you are actively seeking solutions and are willing to take steps to improve your situation. With a job that pays $15/hr and monthly expenses around $800, you have a good foundation to start addressing your debt.
First and foremost, prioritize paying off the $1k due at the end of the month to avoid any penalties or further financial strain. Once you have taken care of that, focus on tackling your credit card debts. It’s wise to start by paying off the card with the highest interest rate first, as this will save you money in the long run.
Since you have experience working in restaurants, it’s a good idea to continue searching for server positions that may offer better pay. In the meantime, make sure to budget carefully and cut down on any non-essential expenses to free up more money for debt repayment.
Regarding your credit score, reducing your credit card utilization and making on-time payments will help improve it over time. Consider keeping your credit card balances low and paying off the full amount each month to avoid high utilization rates.
Remember, it’s essential to stay focused, determined, and disciplined in managing your finances. With a solid plan in place and a commitment to making positive financial decisions, you can work towards becoming debt-free and building a healthier financial future for yourself.
Best of luck on your journey to financial stability. If you have any specific questions or need further assistance, feel free to reach out. Take care and keep up the good work!
Farewell from THE MONEY MINDER.
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