19 with $3k in debt. Any tips for me?

Submitted by Development-Inside t3_zzca11 in personalfinance

19 with $3k in debt. Any tips for me? Please read below! I need to fill in the gap with the 26 characters which is ridiculous lmaooo.

Hey everyone,

As the title suggest, I am 19 and have 3k in credit card debt. When I turned 18 my mom signed me up for a BOFA cash rewards card. At the time, it was a $1,500 maximum, and they upped it to $3.5k. I didn’t have a job at the time, but now, I am a barista for slightly over a year, and have been learning more on how to pay off my debt. I actually just landed a new job for $22/hr and I will be working Monday through Friday. Every paycheck I get will go to my credit card debt to be payed off every month, and then once I am in zero debt, the rest will go into my savings and Roth IRA which I have set up with Fidelity. I know it’s a setback, but I’m on the right track. I’m moving to New Orleans to be with my girlfriend at the end of this year, so my goal is to pay off my debt and save up for my apartment. Does anyone have some tips for me?

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SnooBananas5673 t1_j2as99s wrote

Don’t be afraid of $3k in debt that’s very attainable to pay down with some discipline. There are many that have much more, but it all starts the same. When I first moved out I built up credit by taking a few loans; furniture, tires, etc..I was actually right around where you are.

At the time I made $14/hr, and each paycheck was barely $1000. I managed to save $200/mo and chipped away. It was motivating to get down to $2000, then $1000, going through that helped me realize how quickly things can get out of hand. It was a life lesson learned early.

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crazynfo t1_j2ar4rw wrote

Hey there! It's great to see that you're taking control of your finances and working towards paying off your credit card debt. It can be tough at any age, but especially as a young adult, so kudos to you for taking this on.

To help you with your budgeting and debt repayment efforts, have you considered using a budgeting website or app? There are tons of options out there that can make it easier to track your spending and see where your money is going. Some popular ones include Mint, YNAB (You Need a Budget), and mvelopes. They can be really helpful in keeping you on track and seeing your progress.

As you mentioned, you're planning on moving in with your girlfriend in the near future. That's exciting! Just be sure to have some open and honest conversations about your finances before combining them. Make sure you both have a clear understanding of each other's financial goals and habits, and consider getting a written agreement in place if you decide to merge your accounts. It's always better to be safe than sorry when it comes to money matters.

Keep up the great work, and remember to celebrate your progress along the way. Paying off debt can be a long and sometimes difficult process, but it's worth it in the end to have a strong financial foundation. Good luck!

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Development-Inside OP t1_j2asc8g wrote

Thank you for the kind reply, I actually have mint! I will pay off my credit card in full most likely by next month. I am only going to be living with my girlfriend in New Orleans for about 1.5 years, until I transfer to a college, hopefully Boston U! She will be coming with me as we both want to go to school together. She makes more than me now, and is saving up for our studio apartment for the end of 2023. I will be moving there in 7 months

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Development-Inside OP t1_j2asgl5 wrote

Can’t live with my parents anymore, lmaoo. I need to leave Los Angeles 🤣

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dmaxd123 t1_j2arpr9 wrote

you sound like you're on a good track. I would just avoid the CC until it is paid off, then debate if you want to keep using it and paying it off monthly but if you start using it and can't pay it off, pay it off and be done with it for a few years

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Parking_Goal_3301 t1_j2at9rz wrote

I know this feels terrible. But you can manage it. I know this sounds super condescending but it’s way better to take these knocks earlier and with lower stakes like you are now.

You’ll get through this, you’ll probably look back on it as a learning experience. At least that’s how it was for me.

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Development-Inside OP t1_j2atflj wrote

Yes I will! Thank you. After I’m done I’m putting a good amount into my Roth IRA monthly. I got this!

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AnybodySeeMyKeys t1_j2az0ex wrote

You're making headway, doing the common sense things. If you want to get there faster, moonlight by waiting tables a couple of nights a week. That's what I did.

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Sea-Engineering2787 t1_j2aqegt wrote

yeah have got a link on my profile hit up and text with the company

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