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Getting my priorities straight

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Since I've broken up with my boyfriend I've been doing a lot of self reflection and a lot of planning for my future.


I almost have my credit card paid off (it will be paid entirely at the beginning of February)


I owe almost $7,000 on my car. (it's only worth about $5,000!!)


I currently live with my grandma and uncle, and pay my uncle $140 a month plus running errands for my grandma and taking her places (she doesn't drive).


I have a good job and make decent pay for only being 20 and not having gone to college.


Now I can't stand living with my grandma and living out of one room - i used to have an apartment i lived in with my ex, and I loved having my own place.


So starting in February I can either start saving around $500-$600 a month or putting it towards the principle on my car - or both.


I just don't know what to do, save up or pay down debt? i'm trying right now to have my auto loan company lower my interest rate because my credit score has gone way up and when i filled out a refinance form they offered me a lower rate, but then i found out i can't refinance through them if i already have a loan through them.


Any advice??

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pay off your debt!!!


financing is just a nicer word for debt! I would say , if you can, suck it up and stay with your grandmother and uncle even longer and get that car paid off too... then you will have more money for your apartment


you are only 20...if you get into the bad habit of financing and refinancing now.. you will become accustomed to that kind of living, which get sooo many people into trouble further down the line.


save up and get out of debt first... no more financing!

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I say focus on paying off the debt while at the same time balancing income for other recurring expenses and keeping some easily accessible cash in case of an emergency.


The interest rate on your loan is likely a lot higher than what a savings account or even a CD would pay. And other investment options should be looked at later but not now it sounds.


I say try to get your rates lowered on your car loan and credit card (even if it is already paid off) while paying as much as you can on your car loan, paying your other bills, and saving a little money just in case life throws you a financial curve ball. Someone told me a long time ago to keep 1-2 months income in savings so perhaps somewhere in that neighborhood.

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