Would renting a room in our home be a good way to save/pay off some debt? How common is this? My wife and I have been thinking about renting our master bedroom in order to be able to save some money and try to pay off some debt. It has been unoccupied since we purchased the home 3 years ago. We have a 3 year old and really can’t figure out if this would be a good idea or not. You know just bringing a stranger into our home. But we have …

Advice on how to tackle debt I am looking for advice on how to tackle my debt. My monthly take home is 4.5k in a HCOL. After rent/bills are paid for I’m left with $800 a month for gas, food, etc. I’m struggling at developing better spending habits and tracking my spending so I could pay off my debt. Should I stop investing 5% into my 401k (employer has 5% match) and pay tow…

Completely lost and don’t know how to get out of debt I (21M) started working at 17 and have never worked at the same job for over a year, I have little to no financial literacy especially in regard to saving and making sure I’ve allotted enough money towards my bills. In February I started working for a rail company unloading rails at a logistics building, it was production based pay and we got pa…

Sell old coke stock to get out of debt? So I’ve had a rough go of it financially these past month or two. Got fired from my job, and have had over 100 interviews since then and none have worked out except I got hired by Southwest Airlines. Only thing is I have to wait until late October to start. I’m currently $2400 in credit card debt and have no savings and very little income. I do…

Pay towards credit card debt with whole paycheck? I have about 8k in credit card debt (across 3 cards). One credit card has about 4500 on it. I just got paid and I was thinking about just using my whole paycheck to pay it down and then using my savings to pay my bills. I’ve been trying to pay my cards off and not putting anything into savings until I do pay them off. If I do this, I’ll be down …

2015 debt collection… a disabled man needs help. I recently received a court summons from a Massachusetts credit collection law firm for a credit card debt in 2015. The debt is $5,500. I already filed the “Answer” to the court and the credit collections law firm. I then received a court date and time, a virtual Zoom hearing. One of my issues is that I am a paraplegic due to Muscular Dystrophy,…

Down payment or paying off debt? My wife and I have a decision to make and I want to be smart in making this decision. My wife makes $95,000 a year plus an extra 20 grand in bonuses I make $98,000 a year plus an extra 20 grand in bonuses I have 68,000 in student loan debt My wife has $70,000 in student loan debt We have no other debt We have two children under 4 We have $200,0…

Debt from a college I never attended (mistaken identity?) I received a debt collection letter from a seemingly legitimate debt collection agency that claims I owe $30 to a college I have no relation with. Moreover, it says that the amount was owed back in June of this year when I graduated in 2020 at a different college- and I have never taken or applied for any type of schooling since. I sent in a di…

I have 5k in debt, with 5200 in savings I recently started a business and had to take on some debt in order to start it off. On a personal line of credit I currently have 3200 at 8.9% APR, and 1700 on a business card at 16.49% In my savings, I have 5200~ Currently, every paycheck I dump a considerable amount into each account to reduce them as quickly as possible, ranging from 250-40…

Homeowner in debt needs advice What would you do in my situation? Purchased a townhome 2 years ago at a 3% interest rate and I’ve screwed up and got my self into $20k of credit card debt. The COL keeps increasing on top of it. The good news is I still have a credit score in the 700s. My HOA wants me to paint the house which will be roughly $2500. I can pay this in $ with a bo…

Did I make a foolish move by paying off my student loan debt? Hello, I had about 20k in federal student loan @4.3% that will start accruing interest in September. That’s my only debt so far so I just paid it off with cash. Problem is, I’m looking to buy a house in the next 6 months or so, but the high interest rate got me thinking … maybe I should have paid minimum amount in my student debt. I do have enou…

Just got summoned for a debt I forgot about I’ve been working really hard recently to pay off my credit cards. A few years ago I took out a credit card consolidation loan ($6k). I put it on auto pay and missed a couple payments because I just didn’t have enough in my bank account on that day. They were very quick to discharge it. This is the stupid part. That was discharged and I knew th…

CC Debt – Pay Off In Full, or Take Settlements When COVID hit, my wife and I lost both our jobs for almost a year. We exhausted savings, then used credit cards to survive. Between us, we have $70k in CC debt. In late 2021, we both got jobs and out net income is higher than ever before. We have new credit cards (no balances), very low expenses (30% of net income), and a decent savings account…

LPT: If you have a loan, make separate “principal-only” payments to get out of debt much faster (and cheaper). Hey guys, financial services industry professional here and former banker. Given the state of our economy and the financial pressure most families are facing, I thought this might be good knowledge to share since it’s not talked about often. If you have a fixed-rate amortized loan (scheduled payments over a fixed period of time) you can get out …

Have a bunch of debt – need to make a life change or just pay as scheduled I have 60K in student loans fixed at 5% for 10 years I have 70K in a HELOC fixed at 9% for 10 years Both payments are $600 I then have a mortgage $650K at 3.5% Payment of $3700 at my primary residence and mortgage of $190K at 3.5% with a payment of $1200 on a rental property I own which I make 50% profit on as a rental. I have a good income r…

Should I Pay Off All My Debt? I have ~$70,000 in student loans at an average interest rate of ~5%. They are all government loans. Since the payment freeze was enacted, I’ve been able to save enough money to pay off all $70,000. My question is, should I? I now have the money parked in very safe money market fund that earns slightly above 5% interest. Should I make the absolu…

Paying off debt and SAVING. I’m 20(F) and I used to be able to save. As i turned 16, my parents stopped helping me which resulted in me paying for everything myself. I bring home $2540 after taxes and pay $2266 in bills. If I ask my parents for help they always have an excuse or say they don’t have it (shocker.) I have two CC, one at 31.99% ($1793 balance) and the other o…

Pay off CC debt slowly or all at once? I (29M) have ~9.5k in credit card debt left after having been aggressive the past couple months to paying it off. I’m on track to earn 120k+ this year on 1099. I’ve been of the thought of continuing my aggressive pay down and should be able to pay off this card by end the year, latest early next year. However, I do have an emergency fund (in a H…

Unpaid debt life insurance My dad recently died. He had a decent life insurance policy that all goes to my mother. About 4-5 years ago he stopped paying his credit cards and never filed for bankruptcy. Do I notify the creditors? Will they just find out? My mother has plans for his life insurance money and I’m trying to stress to get that it probably is not hers to spend y…

25 yr old medical debt Lets just say without getting into details, i was on life support & in a coma & now i have 100k in medical debt. (Already in collections) Any tips? submitted by /u/shesthegreatest