Hi Money Minder,
I’m thinking about moving out of my parents’ place and into a rental with my girlfriend. My income is about $3770 a month after taxes, and my expenses add up to around $3400. I do have some credit card debt, but I include the minimum payments in my expenses. Should I focus on paying off the credit cards as much as possible, or should I stay at home and save the extra $1500 a month?
Cheers,
Response from THE MONEY MINDER:
Hello There,
Hello,
First of all, I understand the dilemma you are facing, and it can be challenging to navigate financial decisions, especially when credit card debt is involved. It’s crucial to weigh your options carefully and make a prudent decision for your financial well-being.
Given your current income and expenses, it seems like you have some margin to work with. While moving out with your girlfriend may be an exciting prospect, it’s essential to address your credit card debt first. By prioritizing paying off your credit cards, you can ultimately save more money in the long run by avoiding high-interest payments.
I would recommend putting as much as you can towards your credit card debt while still ensuring you have a comfortable emergency fund in place. Once you have significantly reduced or paid off your credit card debt, you will have more financial freedom to consider moving out.
Additionally, staying at home for a bit longer and saving the extra $1500 a month can provide you with a more robust financial cushion and a better foundation for your future financial goals.
In conclusion, tackling your credit card debt should be a priority before making significant lifestyle changes like moving out. By taking a proactive approach to eliminating your debt, you will set yourself up for a more secure financial future. Best of luck with your decision and financial journey.
All the best from THE MONEY MINDER.
Leave feedback about this