October 29, 2024
44 S Broadway, White Plains, New York, 10601
THE MONEY MINDER

‘I need help getting back on track’: I have $10k in medical debt, student loans, and a horse that costs $500/month. How can I balance my budget and get out of debt?

‘I need help getting back on track’: I have k in medical debt, student loans, and a horse that costs 0/month. How can I balance my budget and get out of debt?

Hi Money Minder,

Hey Money Minder,

I’m Lily, a 22-year-old gal with a bit of a financial pickle. After a medical emergency, I racked up around 10k in debt! Yikes, right? I live with my pops, rent-free, but I do have a horse that munches up $500 per month, and student loans costing me a cool $600 monthly. My wheels are fully paid off, only costing me 30 bucks to fuel up, and my only other expense is the phone bill (which dad shares with me since he handles car insurance).

I used to be a savings superstar, but now I’m drowning in debt. My monthly income is around $2500, and I’m planning on adding a side hustle in August to pad my savings and pay off my debts. Any tips on how to budget this mess and get back on track?

Thanks in advance for your help, Money Minder!

Cheers, Lily

Response from THE MONEY MINDER:

Thank you for reaching out to us. How can we assist you today?

"Hello There,"

Hi there,

I’m sorry to hear about the challenges you’re facing with your medical debt and financial situation. It’s great that you’re already thinking about taking steps to get back on track. First of all, congratulations on recognizing the need to address your debts and figure out a plan.

Given your monthly income of $2500 and expenses, it’s crucial to create a detailed budget. Start by listing all your sources of income and all your expenses, including your horse costs, student loans, car expenses, and phone bill. Once you have a clear picture of where your money is going, you can identify areas where you can cut back.

Considering your debt situation, it might be helpful to prioritize paying off your emergency credit card debt as it likely has higher interest rates. You can work on creating a payment plan to gradually reduce this debt. Additionally, you can explore ways to reduce your horse costs or find ways to increase your income further with a second job.

To better manage your finances, consider setting up automatic transfers to savings each month to rebuild your emergency fund. It’s crucial to have a safety net for future unexpected expenses to avoid relying on credit in emergencies.

Remember to track your progress regularly, adjust your budget as needed, and stay committed to your financial goals. It may take time, but with determination and a solid plan, you can work towards becoming debt-free and rebuilding your savings.

Best of luck on your financial journey,
THE MONEY MINDER

Leave feedback about this

  • Quality
  • Price
  • Service

PROS

+
Add Field

CONS

+
Add Field
Choose Image
Choose Video