Question

I need advice- I’m new in the TBM family and I’m in a dilemma. I’m in deep credit card debt at about $2, 500. I have the option to either pay if all off when I receive my taxes BUT I am currently in the process of starting a new job and we all know it takes about 2-3 weeks to receive your first paycheck. Therefore I’m a little on edge about my upcoming bills in March. So should I pay off my debt in FULL and get it off my shoulders or should I create a monthly payment plan and make small payments on my debt at a time? Any advice is greatly appreciated!  

Answer 1

Give yourself some breathing room. Save that money in an emergency fund & set up a payment plan for yourself. Then make extra payments when you can, to get out of debt faster. If you pay off the debt and don’t have any savings, you’ll have to go into debt again when “life” happens (for example, if your paycheck doesn’t come thru on time).  

Answer 2

No offense but $2500 credit card debt is nothing. Keep 1000 to float you until you get your first paycheck and pay the rest towards debt. Then tackle the remaining balance.  

Answer 3

I'll trade you debts  

Answer 4

Ummmm monthly payment plan. Don’t jeopardize your ability to pay bills to pay off a $2500 credit card bill.  

Comments

@rieger welcome! You’ll have steady income soon with your job. Have $$ in the bank, and if you need it, pay yourself back so you keep an emergency fund. Chip away at debt. If you can, pay towards it each time you get paid, especially if it’s your only debt. It’ll help save you interest.  

Answer 5

I'd set aside enough for rent and food for 2 weeks but everything else on the card.