+21 votes
by (1.7k points)
So my life is about to take a big step. I've never had to use credit cards but with unseen situations I had to. So I have about 5, 000 is debt now  I'm a new single mom with two children 17 and 11 how can I live and pay this debt I've occurred. I do have about 4, 500 saved but id like to keep that cash so I won't have to use credit cards again. I've worked hard to keep a good credit score and hate to see it get ruined. Overtime is not an option as I'm salary. Getting another job isn't practical. As you know parents are teachers now also so that's became my second job. So do I make only the minimum payment on one card and put more on the other one to get one paid off quicker? I only have 2 one with 3, 200 and the other is around 1, 600. Both with no interest untill Dec. My monthly income is 2700 plus $500 a month child support. My rent and utilities are 1300 a month. Then I have a $250 a month truck payment.  
So my life is about to take a big step.

18 Answers

+8 votes
by (1.7k points)
If both are not paid off by December, all the interest will be added on. I would sell things around the house to make more money. How did you save the $4500? Whatever you did to save, keep doing that and apply the extra funds to your CC. Also, the 17 year old can help the 11 year old with school work. And if you're not on a yearly school schedule, school will be done by the end of May so you'll have more time to find side income.  
by (1.7k points)
@effusive I saved before I had all the financial responsibility. I seen the split coming so I saved everything I could
by (1.7k points)
You can still do it. I would pay as much as I can to the highest balance first and once that is paid off, put all of your money to the smallest (of course paying the minimum every month on both). Interest on the higher one will be more than on the smallest one if you don't get it paid off by December (but I would use some of the $4500 to avoid interest if possible if you cqbt pay off by December).  
0 votes
by (3.3k points)
In December (or before interest hits) see if you can get an unsecured loan at a local credit union. Lower interest rate and longer term. But pay down as fast as you can.  
+8 votes
by (5.8k points)
$5000 is not that much. Are you working? Did your pay get decreased?  
+6 votes
by (330 points)
I would pay off the bigger one first. Once interest hits, they will charge you more. In December, call and ask to have the interest rate lowered also.  
+4 votes
by (11.1k points)
Yes exactly! Make the minimum payment on one and pay everything extra to the other to get it paid down quicker. Do you think you can get both paid off before December? If you can’t, I would say focus on the 3200 one first, pay it off, pay whatever you can on the 1600, and take the remaining balance from your savings to pay it off and avoid getting charged interest. There’s also cashback apps like Ibotta, Receipt Hog, and Fetch Rewards if you want something that could help you earn a little extra. It’s not a lot of money but $20 here and there can help a lot!  
by (1.7k points)
@robertaroberto that was kinda my plan I'm hoping. I wasn't sure where to start. But if I have to use my savings I will. To avoid interest
by (11.1k points)
@blumenfeld752 is there any sort of side hustle you can do? I have seen some people toss around ideas like offering a laundry service. That way you can earn a little extra to throw at your cards but not have to actually take on a second job
+11 votes
by (6.5k points)
Calculate your minimum monthly bills/needs and put that away. Use whatever is left from the $4500 to pay down debt.  
+12 votes
by (2.1k points)
Starting with May's payment, you'd have both paid off if you can pay $625 a month. Any way you can do that?  
by (1.7k points)
@blaubok4001 yes it would be tight never thought about it that way
+7 votes
by (9.1k points)
Time to "wring the budget's neck" as we call it around here. Make sure you have worked your budget down to the penny. If you can cover your 4 walls, keep a $1000 EF, and still have a bit left over at the end of the month, I would pay off that larger cc first. Then keep hardcore budget until you can kill that second one. Do not put yourself in a situation where you accumulate more on the card. Once they are paid, you can make small purchases paid off each month to maintain credit. I just got done working ours. I have a large cc balance that 0% stops in Sept. I will make a bulk payment when I can, and the rest I divided out over the next 4 months.  
+15 votes
by (2.1k points)
I would get pay the min on the 3200, and work on paying off the 1600 as fast as you can. That way one card is completely paid off. Then put all that extra towards the 3200. Then if absolutely needed pull from your savings in December to pay it off completely. I personally like to see the amount of credit cards with balances decrease. So I feel more successful when I get one paid off. It just motivates me even more.  
+2 votes
by (380 points)
Have you worked out a budget using TBM's worksheet as a guideline to figure out what your expenses are as a single mom? Is $4500 the only savings you have, for your 3-6 month savings fund in case you loose your job? Now in a volatile market is not the right time to throw extra down at debts.  
by (1.7k points)
@callan34340 that's all I have saved at the moment yes.  
+12 votes
by (1.3k points)
If it were me this is what I would do, I would look around for everything I could sell. Stuff I don’t want/need, clothes the kids have outgrown, everything. Then I would pay all of it towards the smallest debt while making minimum payments on the larger. I would pick up a 2nd job now that school is ending. Probably instacart or similar so I can control hours easier. And I would take my budget to the bone to get as much out of it for the debt. Doing all of that should help you to have it paid off by December. You can do this, $5, 000 isn’t that much to pay in that length of time.  
+2 votes
by (2.3k points)
Do you have your budget to post so we can see if there are areas we could give suggestions on? When I first started I had no idea where our money was all going (. it was Amazon ‍♀️). Now we have envelopes for purchases, but if we don’t have enough in there, then we don’t buy it until we do.  
by (1.7k points)
@battologize Amazon will definitely kill ya.  
0 votes
by (1.7k points)
I've wanted to do an envelope system but im obviously dumb I can't seem to figure out how to get it started. I pay all my bills online. And yes I've watched the videos
by (4.2k points)
@blumenfeld752 one thing that helped me start paying off my debt is keeping receipts and looking at the total every month to see how much I spent. I was spending WAY too much at the grocery store and those numbers kinda scared it into me. I have been able to pay off around $9, 000 of my debt since September because of my budget.  
by (2.3k points)
@blumenfeld752 I am cashless for bills, envelopes, and sinking funds. Since I do all purchasing online, I downloaded my purchase information into Excel and figured out what I was spending each month in my areas. This really helped with my envelopes and determining my sinking funds.  
by (2.1k points)
I pay all my bills online too, and I take out cash and use envelopes for groceries ($400 a month), and household ($60).  
+1 vote
by (620 points)
Take you smallest debt and crush it while making minimum payments on the others. Then take that payment you were making on your smallest debt and apply that amount along with your minimum payment on your next smallest debt and crush it. Then take that total amount plus minimum payment on the next smallest and repeat. This is the quickest way to snowball debt that I have found.  
+10 votes
by (870 points)
If you use the free printable a to write out your budget you will be surprised how much you can put to it if you are determined. Then watch her YouTube video with the debt pay off spreadsheet and use it as she instructs and it’ll make it all feel a little less overwhelming. I had almost the exact same income when my sons dad left me with nothing and all of the bills. I was also paying $650 to daycare, had kids in diapers and put $400 a month to debt and anything extra (taxes, etc. ) to debt. You really can’t compare situations because I’m sure your teens eat you out of house and home, but I’m sure if you get organized with TBM it’ll all feel a lot more reasonable and achievable! I’d show you my old budget sheets from when I was in your situation, but i am in the middle of a move so they are packed away!  
+18 votes
by (14.3k points)
If you can handle all the bills on your income I would toss the 500 at it every month to get it paid off by December assuming the ex will pay on time. I would never count child support in a budget but if you get it and the kids have everything they need I would do that
+5 votes
by (5.9k points)
Double check those loans. because often if you don’t pay them off during the promotional time, they charge you all of that interest. May not be a popular opinion but considering paying off the $1600 with your savings and throw the rest of everything at the $3200 with the goal to pay it off by the end of the no interest term. Bc if all that interests hits, it just will cause you more stress and anxiety! You’re doing great though to have saved that much and have very little credit card debt!  
by (200 points)
@theatheaceous Hehr - Keister Yes I would do this too!  
+2 votes
by (7.6k points)
Credit cards are a poor choice for paying for emergencies and such. I would recommend getting a personal loan, paying off the cards, and making monthly payments on the loan. It will be a fixed payment and a lot less interest over time.  
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