Which credit card debt should I start paying first?

[Blue Dreamer]

Surely you have learned to not use these cards in any further fashion? Just pay them both off ASAP and move on to a better life.

[sd95]

Surely you have learned to not use these cards in any further fashion? Just pay them both off ASAP and move on to a better life.

 

 

No I plan to use them after paying them off because I an a responsible spender. Both cards were only used to the max because lost my job and had to use both cards to pay rent and bills for 3 months.

[abitbroken]

No I plan to use them after paying them off because I an a responsible spender. Both cards were only used to the max because lost my job and had to use both cards to pay rent and bills for 3 months.

 

did you not collect unemployment?

 

That's not being the responsible spender you say you are.

 

A responsible spender would have had.

1) An emergency fund that would have covered rent and bills for three months.

If you had not yet saved up that much, at least rent.

 

2) cancel all cancellable luxuries such as streaming services.

 

3) You would have picked up a job that was easy to get and was flexible, such as waiting tables, until you secured a job in your field.

 

4) Shop around for a credit card that had 0% balance transfer to give you a little bit of a breather so you are not compounding interest.

 

5) If you were desperate, a personal loan from a credit union would be a much lower percentage rate. I would open a small savings account with the local credit union to establish a relationship should you ever be in that situation again. A personal loan at 3-12% is much better than 24.99%

 

Now, you should pay down your debt and also contribute to an emergency fund so that you will not put any emergency item back on your credit card. Use them for airline tickets, and only for items there you must put them on a card for protection, but only if you have the cash to pay it off immediately.

 

Going forward things may help you become a responsible spender.

[sd95]

did you not collect unemployment?

 

That's not being the responsible spender you say you are.

 

A responsible spender would have had.

1) An emergency fund that would have covered rent and bills for three months.

If you had not yet saved up that much, at least rent.

 

2) cancel all cancellable luxuries such as streaming services.

 

3) You would have picked up a job that was easy to get and was flexible, such as waiting tables, until you secured a job in your field.

 

4) Shop around for a credit card that had 0% balance transfer to give you a little bit of a breather so you are not compounding interest.

 

5) If you were desperate, a personal loan from a credit union would be a much lower percentage rate. I would open a small savings account with the local credit union to establish a relationship should you ever be in that situation again. A personal loan at 3-12% is much better than 24.99%

 

Now, you should pay down your debt and also contribute to an emergency fund so that you will not put any emergency item back on your credit card. Use them for airline tickets, and only for items there you must put them on a card for protection, but only if you have the cash to pay it off immediately.

 

Going forward things may help you become a responsible spender.

 

 

When you are fired you are not eligible for unemployment.

[abitbroken]

When you are fired you are not eligible for unemployment.

 

Well, make sure that you don't do anything again which requires disciplanary action. But ALL of the other points in my post still apply. There was only one line about unemployment, and that was the only thing you chose to pick out of it to negate my entire point

[sd95]

Well, make sure that you don't do anything again which requires disciplanary action. But ALL of the other points in my post still apply. There was only one line about unemployment, and that was the only thing you chose to pick out of it to negate my entire point

 

I was set up which is how I was fired. And yes I understand it's important to have savings but sometimes life gets in the way like last year. If the building I was living was never sold I would have been able build savings last year and get out of debt. But instead I had to spend money on moving and then had to start over.

 

So this year I expect to be out of debt by 6/30 which will leave the rest of the year to build the savings.

 

 

What was always challenging about saving money was the money that was left over had to last you 30 days. And I always found myself dipping back in it which is why I finally got a online savings account which is not easily accessible so now the savings can grow

[notalady]

I was set up which is how I was fired. And yes I understand it's important to have savings but sometimes life gets in the way like last year. If the building I was living was never sold I would have been able build savings last year and get out of debt. But instead I had to spend money on moving and then had to start over.

 

So this year I expect to be out of debt by 6/30 which will leave the rest of the year to build the savings.

 

 

What was always challenging about saving money was the money that was left over had to last you 30 days. And I always found myself dipping back in it which is why I finally got a online savings account which is not easily accessible so now the savings can grow

 

Sounds like you're living pay cheque by pay cheque with very little saved?

 

I mean how much is it to move? A few hundred dollars max, if that?

[sd95]

Sounds like you're living pay cheque by pay cheque with very little saved?

 

I mean how much is it to move? A few hundred dollars max, if that?

 

 

You look down on people living paycheck to paycheck? I;m not sure I understand your comment. You don't know what people have been through to not have savings.

 

Again, I had to save up 3 months rent while still paying the rent for the place I was in until the lease expired. And no I don't live paycheck to paycheck since I moved into a cheaper place and can save more money.

[notalady]

You look down on people living paycheck to paycheck? I;m not sure I understand your comment. You don't know what people have been through to not have savings

 

No I don't look down on people who live pay check by pay check, there is no judgement there so I don't understand why you would attach such a negative meaning to what I said. I feel like this is the "lady on the phone asking about your future housing plans" situation all over again?

 

It was merely a question in response to the conversation between you and abitbroken. I had not expected you had so little saved, which now makes sense as to why moving had put such a strain on you and had to use credit card to pay bills when you lost your job.

 

I've had times when I had very little saved, and I'm glad credit cards are there to be relied on as a contingency when all else failed. But it is good to save up as much as you can, even if that means cutting down on the non-essentials for some time.

[sd95]

No I don't look down on people who live pay check by pay check, there is no judgement there so I don't understand why you would attach such a negative meaning to what I said. I feel like this is the "lady on the phone asking about your future housing plans" situation all over again?

 

It was merely a question in response to the conversation between you and abitbroken. I had not expected you had so little saved, which now makes sense as to why moving had put such a strain on you and had to use credit card to pay bills when you lost your job.

 

I've had times when I had very little saved, and I'm glad credit cards are there to be relied on as a contingency when all else failed. But it is good to save up as much as you can, even if that means cutting down on the non-essentials for some time.

 

 

I felt that using my credit card to pay rent was a lot better than moving back home with Mom. Then after 3 months I found a job and just completed my 3rd year two weeks ago. So now I can clean up the debt and then build the savings back up.

 

But I couldn't have moved back anyway with mom because I was still on the lease which did not expire until 6 months later. So it was good that I had the credit card because my mom definitely didn;t have $800 to give me for rent for 3 months.

[Jibralta]

I think $3600 is a rather modest credit card debt, considering the fact that you had to move and also lost your income around the same time.

[notalady]

I think $3600 is a rather modest credit card debt, considering the fact that you had to move and also lost your income around the same time.

 

Yea I thought $1,200 a month is pretty good. That'd be my living expenses for two weeks, not including discretionary. Rent alone is $430 a week.

 

Anyway! I think OP got the advice he needs, so good luck OP.

[sd95]

I think $3600 is a rather modest credit card debt, considering the fact that you had to move and also lost your income around the same time.

 

Yeah one credit card was $3000 limit and other was $800.

 

Now it's $2700 and $650

 

I made a new decision to pay off the small one in 3 weeks and then just focus on the big one from Feb to June