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/biz/ - Business & Finance

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910698 No.910698 [Reply] [Original]

Hey /biz/ can anyone give me some advice on how to consolidate my debts?
>20 years old
>$13,000 in debt
>$7000 in bank accounts
>Need a few grand to buy a car soon again
>Make $650 a week
>$900 outgoings a month can be up to $1300
>Probably $2000 in assets

Id like to buy a property at probably 25. Open to investing the money wisely and whatnot.

>> No.910702

>>910698
how did you get a 13k debt at 20?
are you american?

>> No.910703

>>910702
:-D
(obviously)

>> No.910709

>>910698
The 13k debts. What kind of interest are you paying on those? Minimum monthly payments, or do you have a finance scheme in place?

>> No.910713

Im Australian, paying 490 a month over 4 years

>> No.910715

$141 interest a month also

>> No.910716

>>910698
Is your debt already only one loan or? Are there different loans with a total amount of 13K?

This will help us draft a better plan for you.

Also is the 650/wk take home pay or pretax?

>> No.910717

>>910698
Again - what's the budget for the car purchase you are thinking of?

I'm only missing this one and then I have a solution for you that also includes funding a safety net :)

>> No.910719

>>910713
Is this included in your 900-1300/mo expenses?

>> No.910722
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910722

Theres 2 loans heres the info. I make 625 in the hand after tax, one repayment is $309 and the other is $74 a month

>> No.910723

>>910719
No it isnt, but i can reduce it to about 600

>> No.910725

>>910722
Okay good - you have 20k in debt and not 13k.

Is your payment included in the 900-1300 monthly expenditure you mentioned or is this a separate item?

Also budget for your car?

>> No.910728

>>910722
Which one of the loans has the highest rates?

>> No.910731

>>91072
No theyre not included, up to 4k for the car and the 11k has the higher rates im fairly sure

>> No.910732

>>910731
Okay...

Now that makes thing much easier.

Bear with me while I figure some numbers. Give me a couple of minutes.

>> No.910735

>>910732
Cheers

>> No.910744

Budget Goals
Emergency Fund $7800
Debt Repayment $625/mo
Car Budget $4000

First Month
Income ~2800/mo
Expenses - 1300/mo
Remaining - 1500

1500 Remaining
-800 - Emergency Fund (Now at 7800)

700 Remaining
- 500 Debt Repayment, pay minimum + extra to the highest interest loan.

200 Remaining
- 200 Car (Car Budget is now 200)

Month 2
Income 2800
Expenses 1300
Remaining 1500

Emergency Fund - Fully Funded at $7800
Car Budget - $200

1500
-750 Debt Repayment Plan, minimum + extra toward highest interest loan

750 Remaining
-750 Car Budget ( now 950 )

Month 3
Income 2800
Expenses 1300
Remaining 1500

Emergency Fund $ 7800
Car Budget $950

1500 R
- 750 Car Budget (1650)
- 750 Debt Repayment...

Month 4
... And so on repeat the Month 3 onwards and onwards until you have funded your car budget and then in the months thereafter, pay as much as you can towards your debt.

You should have it fully paid off in within two years under this plan, probably 15 months.

Then after you're debt free, you can save as much as you want toward a property.

Bank 7K (This is Now the Emergency Fund) 800
Emergency Fund fully funded in the first month.

>> No.910751

Misread, I make $625 a week after tax, loan repayments are $383 a month and expense are right. So youre saying bank 7k into savings as emergency, and work towards my goals from there? I will be making a lottle over $1000 from Feb next year but will follow the same budget but pay more off. Also looking to buy a car within the next few weeks so will have $3800 emergency instead of $7800

>> No.910753

I really do appreciate your help though. Have to sleep so will reply in 8 hours or so

>> No.910758

>>910751
Right, 625/wk is about 2800/mo (625*54)/12))

Okay so you could take away the 4K from the 7K and you need to put toward 4800 toward to the emergency fund. During this time funding the emergency fund should take priority. Debt repayment at this time should be minimal.

When it's funded 7800, you can pretty much put towards 1500/mo to the debt and it'll be paid off in no time.

Does this makes any sense to you? You do have the money to do this. It just takes willpower.

>> No.911132

Ahk it all makes sense to me now. Ill start putting stuff in different accounts today

>> No.911214

Also is there any reason the emergency fund is exactly 7800?

>> No.911229

>>910698
can you not buy a car with 7K?
You have more debt than you do in your accounts. How about we get a 7K car with tax and title, save for the nice car you wanted instead of settling for a car worth 10K. And lets sell some of your shit to pay off that debt bro

>> No.911247

>>910698
To put it in simple terms, do whatever you need to do to get rid of those debts, first and foremost.

Advice for the future: avoid liabilities. Buy everything cash down, or else the maximum you can safely finance a purchase is 40% of the total value of what you're buying.

>> No.911308
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911308

>>910744
>actually posting worked out advice

>> No.911366

>>911247
Thanks again anon

>> No.911379

Dont buy a car unless you absolutely need one !!

>> No.911382
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911382

>>910698

>> No.911559

>>911214
Six months of your expenses... I did not include the debt into this.

My formula for Emergency Fund
Minimum - 6 Months of Expenses (This is the most important basal line to have)
Maximum - 6 Months of Income
Ideally - Average Min+Max

>> No.911657

>>911559
Ok that makes sense now

>> No.911674

>>910698
>make 2600/mo
>spend 900-1300/mo
>13k debt
whut