Debt/Credit Score/Budgeting

[paranoidmexican]

I use digit savings. Take a few dollars here and there and puts it into a savings account

I have my credit cards on auto pay and I also have a little auto pay that goes into my savings account

[therussianbabe]

Financial planning doesn't start with 'tricks and tips' like little nuggets; entire studies are devoted to this subject to balance income, spending, expected returns and risks. i can't write a usual wall of text at the moment (a lot of reading can be done via /r/financialplanning as a lesson one anyway) but i'll return to this thread with some stuff slightly more comprehensive

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...

you're almost always better off to do that, essentially refinancing your debt yourself. credit card debts are some of the most undesirable debts to owe, and people that have them usually already have other bank debts. is this the case with you? if not, it is highly advisable to take a personal loan out to pay off your credit card debts immediately, they really fuck you when you can't pay everything off every month.

Given that you're currently struggling with monthly income, i'd assume you dont have a rainy day fund (usually considered 3 month of income equivlant, or 6 months of spending). You need to start reducing financial liabilities and outgoings now. the slowcooker is a very good start - hefty, healthy meals at low efforts, there are a lot of recipes online, and if you go to local farmers markets you can pick up a lot of vegetables for cheap, and they provide ample nutrients. potatos (with skin) will become a major part of your diet since they have a lot of essential nutrients for your health, and this is extremely important. you need to reduce fast food consumption both for your health and your wallet - what seems like a cheap meal actually costs much more than cooking enough for 3-4 meals, especially with the slow cooker, ample cheap veggies and cheap cuts of meat (which get tender when using slowcookers anyway).

should you have specific financial related questions pls ask

I'll echo this to a degree. You stated you are barely able to make $100 payments now, this raises a risk of default when taking a personal unsecured loan (which is what you would be looking at). Current rates float in the high 9.xx% range for a well qualified applicant (lower than the rate on your cards). The difference between your credit card debt repayment and loan repayment is the repayment schedule. Banks use fixed amortization schedules, this means that while they (usually) are okay with you paying more than the payment due, they are not okay with you paying less. Credit cards on the other hand usually offer a minimum payment that is less than you could find on a loan.

Unfortunately with the information given there is no solid answer. Is the $300 surplus you have each months end used for food? If not, what is it used for? Are you cancelling the cards prior to your prospective loan? These are all factors in what action, if any, is best for your financial well being.

x2 on emergency fund with a goal of 3-6 months sustainability, especially with a little one on the way (congrats). I highly advise you to go speak to a financial advisor with a newborn coming. Consultations are almost always free. They can steer you on the right path for the rest of your life financially. Seek out a registered local CFP in your area.

Cheers.

[jeffro]

Yeah that's definitely a big key to success, all my direct debits / mortgage / bills come out the day after payday, makes things so much easier when it comes to budgeting and giving you a clear idea of what you actually have.

This was the biggest change for me a couple of years ago, night and day.

Doing alright but paying London rent, despite getting a sound deal, eats into a lot of it. Putting away about £400 a month into savings once all is said and done - and have a nice cushion built up but could easily do better if I didn't eat out/drink out so much. Admittedly I am probably supplementing myself by around £200 a month through mildly grey expenses on the company card 

[GUMP_]

I'm no financial guru but I found if you record every dollar and cent you spend on a spread sheet you soon find exactly where your extra coin is heading. Like what you've done with not buying lunch every day.

A few dollars here and there over the space of a month can easily add up to a a decent amount.


I learnt this the hard way. Being on monthly pay makes you really need to find where each dollar is going and why.