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Debt/Credit Score/Budgeting

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paranoidmexican:
Hey Bikeguide, I thought we could discuss the one thing that plagues us all.....debt. Maybe we can give each other tricks and tips?

I'm about $1200 in debt via credit cards. I really want to pay them off ASAP, but with bills I'm lucky to pay off $100 here and there. Is getting a personal loan to pay all my cards off in one sweep worth it? Will this negatively affect my credit? Or help it? Or would you say I'm better off chugging along slowly but surely as I am now? I make about $2600 a month and pay about $2300 in rent, car notes, etc...

My wife makes about the same as I do, but her credit score is in the lower 600's. We're using her paychecks for the baby (due Oct 15, woo) and food/groceries/gas.

As is we're making ends meets but living check to check. This is one thing I REALLY want to get out of.

My credit score is in the mid 600 range and my goal by 2018 is to have as close as perfect score as possible and buy a house. (I was trying to buy a house this year but my credit was short a few points and I couldn't make the down payment)

Prodigal Son:
Assuming you're not adding to your $1200 debt besides the cumulative interest, you really aren't that bad. Make more of an effort to pay it down. Since you have multiple cards(?) pay off what is gathering the most interest as fast as possible. If you're living paycheck to paycheck now, make shit tighter. Cut your cable bill, raise your thermostat. Do what it takes.

Narcoleptic Insomniac:
Adjust spending so that you can save a third or at least a quarter of your monthly income. Invest that into an index fund or whatever you're into. I prefer this over owning a house. Over 25 years it should be worth about the same minus all the hassle of home ownership and even more so if you decide to move to another city or even within the same city because selling a home is expensive.

andreas:
my current and future income for the next year is close to zero, i have 7k debt, how can i wipe this out? thanks /r/finance

sokoloka:
Budget.  Budget.  Budget.  Do some forensic accounting - narrow down where every penny has gone so far in 2016.  See where you can eliminate any waste or excessive spending moving forward.  Only you can break the cycle of living paycheck to paycheck.

You have another life you're bringing into this world in just a few short months.  NOW is the time to develop a plan and the financial habits that afford you and yours the financial security you need.

Regarding your credit card debt and your credit score; how does the balance you're carrying compare to your total overall credit limit?  If you're serious about improving your credit score quickly you need to drop your balance down to under 30% of your total revolving credit limit ASAP.

Do you have any savings?  Where was this down payment going to come from?  What sort of car notes are you carrying?  Buy or lease?

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