Depressed and in debt

[dr_tan]

@rae23 the problem is my vehicle doesn’t have positive equity so if i sell it then i’ll only get like $15k and be at a 4k loss

 

[rae23]

@dr_tan Roll that negative equity into a cheaper vehicle and drop that payment considerably (think 9/10k payments vs 19k payments). It's not cool, and it kinda sucks, but that's cars for ya. I'd recommend a Toyota Matrix or Corolla of the 2003-2010 variety.

Does your SO know what's going on with your finances? I ask because I literally had no idea how my own SO's finances were and didn't know she needed help until we sat down and did some digging. It sounds like you guys are dual income and no kids so harness that power. It's not fun, but tightening up is gon help big-time.

EDIT> Just read more of the thread, seriously, let your SO help you out! It's not just your finances anymore if you're married you're both in this now! Even if it's just a few hundred a month it can help out a ton!

 

[insaneity]

@dr_tan Hey, you can do this! The first step is realizing that your finances aren’t were you want them to be. I have been there and Dave Ramsey really helped me out. I read his book ( The Total Money Makeover) and then I started watching all his videos on YouTube.

1- You need to get in a budget, I use the everyDollar app ( here is how to use it effectively

)

2- You’ll need to stop using credit cards ( Dave recommends cutting it, but I didn’t go to that extreme, I just didn’t use them, forget about rewards and miles until you get out of this mess.

3- Save $1K for your emergency savings.

4- Start doing the Debt Snowball in your case this will look something like this. Note: When it comes to getting out of debt the emotion is more important than the interest, that is why Dave recommends listing your debt lower to highest regardless of interest.

• $700 ( keep sending the min payment to all other debt)
  After your are done with the $700 then
• $2k Best buy
  Then
• $5k Navy federal
  Then
• $9k Navy Federal
  Then
• $13k Student Loans
  Then
  19K Car loan. (I’ll try to sell this car and buy something cheaper maybe a 3-5K cash reliable car.)

Here are the baby steps explained by him:

Here is how to do the Debt Snowball.

I know right now this seems overwhelming but you can do it. Watch those video, make a plan and execute. You must be willing to put in the work, budget and everything that is not necessary put it towards your debt.

• Im not a financial advisor, this is just my recommendation and what I did to get out of debt. If you need any more details don’t hesitate on reaching out!

 

[billthecableman]

@dr_tan Read the qyick, easy book, Rich Dad, Poor Dad.

Read Suze Orman's books or podcasts.

You need to learn what is lacking in your life that you keep sabotaging your financial security.

I think you need emotional counseling and once you make progress with your issues, then you'll stay on the budget bandwagon easier.

 

[djpearson]

@dr_tan I didn't see it suggested but I'd also check your tax with holdings to make sure you have the right choice selected.

I'd also look at the mess hall as often as possible because it's going to be the least expensive option if you live near the base. That, and making all your meals at home. No eating out.

You're welcome to join us over at the WIRR as we "race" ourselves out of debt.

 

[caiasaura]

@dr_tan Is the SCRA benefit not available anymore? Your interest rates are too high on your credit cards as a service member.

https://www.military.com/benefits/m...icemembers-civil-relief-act-overview.html/amp

 

[dr_tan]

@caiasaura yes i have this on my best buy and discount tire card, but it only works on loans before you joined the military.

 

[bobby80gh]

@dr_tan False. I got multiple credit cards after joining, called up their customer service after 2 years of paying around 20% interest and told them about SCRA and all I had to do was send them proof of service. They all gave back around $1,000 of retro over interest payments.

Only place this doesn’t work is Navy Fed and USAA. So what you need to do is find a large company credit card with $0 balance transfer with an intro 0% Apr for the first year. Transfer ALL your navyfed and USAA credit debt to that card, then have them honor scra when intro period is up.

 

[dr_tan]

@bobby80gh hmm, interesting, do you recommend any banks?

 

[bobby80gh]

@dr_tan I used Discover for my first balance transfer and I was happy with them. I signed up for Capital One Venture for my everyday credit card while I was active duty and I still have scra on that card. Just stay away from NFCU and USAA for your debt.

 

[sbschristianmedia]

@dr_tan Thank you for service, from a Navy vet.

Try using either the Avalanche or the Snowball method to clear your debt. There are YouTube videos that have extensive info on these two methods. Prep your own meals and refrain from going out to eat. Pause all investments including IRAs. Just invest enough of your salary to receive the government's 5% matching contribution for your TSP. Once you have ended your debt your options will open up immediately to invest and save aggressively for other endeavors in the future.

 

[rtp76]

@dr_tan Greenpath helped us.

 

[bobby80gh]

@dr_tan Your command financial counselor sounds terrible. These issues may feel overwhelming but this is an easy fix. As AD you should not be paying more than 4% on ANY care. If you are balance transfer. That is priority #1…consolidate your debt at lower rates then go from there. Will take some time but just stay focused

 

[harpazo417]

@dr_tan Wait, whats your rent payment?

Do you receive $1100 a paycheck?

What are your minimum payments?

I’m assuming your car is probably $200-300/mo
Nfpc - $250/mo?, nfrc - $150/mo, student loans - $120-220/mo?

So if your total is between $750 to $900, then add gym, discount tire, and food, you’re roughly at $1000. For the month.

Of course these are just guesses but i would handle all those minimums in the 1st of the month (or 15th) and throw the entire other paycheck into the navy federal rewards card, for 5 or 6 months straight (the one with 5k balance).

Then switch to throwing the entire paycheck to your best buy card and discount tire, by the end of those 6 months those two balances should be paid down a bit more. Switch over to your platinum card before you focus on student loans.

By the time you switch to your platinum card, you should have paid off a few things and have more left over money. Just breath and most importantly start a little spreadsheet and be strict with yourself for the next year. This is something you need to learn.

Edit: i didn’t mention the car because you just need to make the monthly minimum on that until your credit cards are paid off - then you can focus on the principal.