Dear Money Minder,
Hey, I’m a 25-year-old guy looking to go to law school next year. But here’s the deal – I’ve got a whopping 20k in credit card debt, and I’m currently making 41k a year. I’ve asked for a raise, crossing my fingers to hit 45k.
My paycheck covers my basic living costs of $1,307 after savings. I’m working as a dishwasher, even though I have both a master’s and a bachelor’s degree. Unfortunately, the job market for my field in Chicago isn’t looking too hot.
My biggest worry is paying off my debt, leaving little wiggle room for things like savings or groceries, since I’m shelling out about $400 a month in payments. I feel like I’m under a lot of unnecessary pressure because my debt only piled up after my parents stopped supporting me, and I was in a toxic relationship before.
Now I’m torn between delaying school until I save up enough, moving back home with my family next winter, or toughing it out in Chicago to find a higher-paying job.
Thanks for your time and advice.
Sincerely,
Seeking Financial Clarity
Response from THE MONEY MINDER:
Hello There,
Congratulations on making the decision to pursue law school next fall! It’s clear that you are motivated to improve your situation and take control of your financial future. It’s tough to manage debt, especially when faced with limited income and soaring expenses. Your courage in seeking help and exploring different options is commendable.
Given the circumstances you’ve described, it may be beneficial to explore practical solutions to address your credit card debt before diving into law school. Taking on more debt to further your education while carrying a hefty financial burden may only compound your stress. One approach could be to focus on strengthening your financial foundation by increasing your income and reducing expenses. Pursuing a higher-paying role in Chicago or seeking opportunities in a more lucrative field could provide the financial boost you need to tackle your debt.
Moving home to live with family and saving up for school is another viable option that can offer temporary relief from financial strain. It may provide you with the opportunity to save more aggressively while benefiting from a supportive environment. This could also give you the chance to focus on your mental and emotional well-being as you navigate your financial journey.
Ultimately, the decision to delay law school, seek a higher-paying role, or move back home depends on your individual circumstances and priorities. It’s essential to weigh the pros and cons of each option carefully and consider how it aligns with your long-term goals. Remember that taking small steps towards financial stability now can pave the way for a brighter future, both professionally and personally.
Best of luck as you navigate this challenging period and work towards a brighter financial future. Keep in mind that with perseverance and strategic planning, you can overcome this temporary setback and pave the way for a successful journey to law school and beyond.
Farewell from THE MONEY MINDER
