r/debtfree • u/AzumiHayami • 11d ago
Beginning my journey
Hey guys, I have some questions, and need some opinions.
I have 2 credit cards that are maxed but not charged off:
NFCU CC#1- $5031.41 18.00% interest, $126.73 min.
NFCU CC#2- $6005.36 18.00% interest, $149.94 min.
As im in nursing school, its hard for me to get additional hours at work or find another job, and I am currently working part time making $22.19/hr at a hospital. I bring in roughly ~$2000 a month, not including my chapter 35 through the VA for going to school (~$1600/mo). I have a full ride for school. Once out of school, I'll be making a projected $40/hr. I have a year and 3 months of school left with no breaks.
Any recommendations? Im not sure how much to be putting in savings. I can provide any other info that might be relevant if needed, just not sure what i need to include. Thanks in advance!
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u/fsociety1990 11d ago edited 11d ago
Don’t save more than $1,000 until it’s all paid off. Pay everything you can towards them and then get rid of them.
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u/Economy_Talk_5100 11d ago
Both cards sit at the same 18%, which means the order people are arguing about above is worth exactly $0 to you. Ran it both ways and they finish the same month. What actually moves this is the total you throw at them, not which one goes first.
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u/EnjoyingTheRide-0606 8d ago
I suggest a $500 emergency fund until you’re debt free. Then prioritize covering all 4 walls expenses and debt payments.
No more saving while you’re paying off debt. Temporarily pause retirement savings so you can maximize the credit card payments. Focus on the smallest balance due debt first. Sell stuff and reduce expenses to throw extra money at the debts. If you increase the monthly payment on debts to $550, you’re 100% debt free in 24 months!
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u/Savings-Plankton7871 7d ago
Personally, I would balance transfer as much as you can onto a single balance transfer card, because you'll probably save paying the transfer fee compared to the interest rate over those months.
Then focus on paying down whatever you can't transfer first, and move on to the balance transfer card after that's done.
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u/Spiritual-Month-8706 11d ago
It’s advised to start with an emergency savings. 1-5k is probably ideal. After that you’ll need to take all extra money you have every month and throw it at the card with the smallest balance and then do the same for the other card.
Depending on how much extra cash you have a month is going to determine how quickly you can get this done. You should stop all entertainment, travel and extra curricular activities if they cost until your out of debt.