2024 Debt Confession | It's a lot... | Priorities, Payoff and other plans

[@MsGechi77]

Stop using credit cards. Don't take a year off school, graduate, find a career, then do the snowball. Pay off the $2,500 loan 1st. Best wishes💖

[@ThePoorMillennialMom]

Thanks! That’s the plan - I’m not using an credit card anymore - cash flowing everything!

[@954giggles]

Rooting for you!! Im on this journey too. It only gets better with time

[@ThePoorMillennialMom]

Thank you! It’s rough but we we’ve got this!

[@TheMoneyMakingMentor]

I love to see the balances go down. Make it a game.

[@BudgetsWithELMA]

Happy Saturday 👑 & I know it is not easy to share our debt but it's the beginning of everything to tackle it, great debt confession video 👍

[@ThePoorMillennialMom]

Thank you! It is a bit nerve wracking, but talking about it is the first step.

[@Just999Me]

Don't close the cards. It'll drop your credit score. Just pay them off and keep them so you can have low utilization rate on your credit and a longer credit history -- which will help you overall as you continue to pay off all consumer debt.

[@ThePoorMillennialMom]

Thanks! The Fido did get closed, but it didn’t affect my score too much. However, I am intending to keep my other cards open for the score boost!

[@CanCricket12345]

Hello fellow 🇨🇦 paying off debt! I’m wondering if you made this spreadsheet yourself or if you got it free somewhere. I’m also getting more serious about paying off debt and would like to track the pay,ents somewhere. I already have budget documents that I use, but I’d like a picture of my debt pay off.

[@RB-gt8bf]

You will make it one step at a time. This is the same advice I give to myself daily.

[@ThePoorMillennialMom]

One dollar at a time and we'll get there!

[@RB-gt8bf]

@@ThePoorMillennialMom Yes! I was making slow progress and my refrigerator needed to be replaced last week. I downsized to a simple smaller model without bells and whistles as long as it keeps my food cold.

[@BudgetinThePeace-mq8vg]

Have you looked into payment matching along with the payments to help knock down interest on the cards? Consider that closing a card (or any other lines) will affect your utilization rate and your credit score. Not sure what the stipulations on your SLOC are, but we bank and utilize PLOC through Tangerine and it is great for keeping interest at bay and moving 💰quickly when needed. Another option is to “borrow” from savings at 0% to pay cards at 19.99%/25.99% (if your comfortable and the numbers make sense to you) then dump the payments that you would make back to the saving until “debt” is “paid off”.

[@ThePoorMillennialMom]

I have considered leveraging the SLOC, but that was before all the nonsense with waiting for my loans. Now that my emergency fund is at a comfortable point, my next goals are sinking funds, and then I’m intending on moving all spare money to debt payoff. I’ll be posting weekly updates as well because sometimes things change fast and extra money comes along.

[@brittanymorris943]

Since you’re in Alberta (I’m just outside of Edmonton) you can keep your bottles and use it as you please. It’s always good to have some sort of money coming in even if it’s bottle money

[@ThePoorMillennialMom]

Fair enough!

[@zoea2812]

Wow!!!! 😮 That's a lot of debt. That's why I didn't go to University, I was not comfortable with owing that high amount of money. I just concentrated on getting a job and not owing anyone anything.

[@TheMoneyMakingMentor]

Have your tried transferring the CC balance to a new card that offers 0% interest for 1 year? Maybe a personal loan with a better rate and pay off the Student LOC.

[@terryhenderson424]

About figuring the $300/ month on Fido then $350/ month on Tangerine: It is far better to PLAN conservatively then do what you can to accelerate the planned repayments. For example, yourvspread sheet shows 3 payments of $300 for 3 months followed by @$50 in October. With just $50/3, or about $17 additional per month will get you finished by the end of September. And this tracks with your comment about September.

[@ThePoorMillennialMom]

That makes a lot of sense. I've readjusted the sheet but as usual, life has a way of happening - so let's see what we can do!

[@Ilovetosmile2023]

Please pay off the Scotiabank and Tangerine both at 19% first. It’ll give you enough breathing for other debts. Thank you for showing this.

[@brianasche6406]

Do you have an ability to pay more towards the Fido? Seems the snowball will take much longer than necessary. Both of those cards shouldn't take that long.

[@rare2find0918]

Cut up all of your cards while you continue to pay them down (less temptation to use them for anything). Don't close the accounts though...if you're trying to obtain a higher credit score closing cards typically decreases a credit score. Stay In school, finish your program and get a higher paying job. Best wishes!

[@ThePoorMillennialMom]

Absolutely! All the cards I have for these accounts are expired and if new ones are issued I have them sent to my moms house instead. The credit score thing is a good point, so I’ll consider what to do about the accounts.

[@angiesmith9181]

You’re forgetting your interest charges will be added each month to your credit cards so it’s going to take you I would say at least one more month to pay each one off as you didn’t account for the addition of interest charges.

[@ThePoorMillennialMom]

I realized that after filming! I’ve now updated the spreadsheet for my debt free friday videos so it calculates the approximate interest based on the payments and balance.

[@DaltonsFriendswood]

Not sure what you’re studying but will all of these school expenses pay off in the form of a much higher salary?

[@ThePoorMillennialMom]

They should, yes. I’m doing a Masters in Data, Inequality, and Society at the University of Edinburgh, which will allow to work in public policy and government.

[@jwoooooooo]

❤

[@ThePoorMillennialMom]

❤️

[@CalvinMorris-cf8jk]

wow with all that collage dept you must have a high paying job.

[@delayedgratification581]

Just curious why you’re not prioritizing the highest interest debt? You’re just staying in debt longer with snowball.

[@ThePoorMillennialMom]

It’s the psychological benefit. While I know that mathematically I should pay high interest first, I need the wins of paying off small balances to stay motivated.

[@delayedgratification581]

Not to sound harsh, but I'd think $100K+ debt is motivation enough and I'd argue you can't afford said psychological benefit. Of course, to each their own. I shall support your debt free journey :)

[@TheMoneyMakingMentor]

Not my business but it seems like your new partner is sounding like a financial liability

[@119jle]

Your mental health has not improved in fact it’s worst.

[@ThePoorMillennialMom]

What what precisely gives you the ability to know how my mental health has or has improved?

[@shrtblondie1]

Cheering you on! Do what works for you. If you want to pay off debt take a year off and work your butt off then return in a better position. If you want your degree in the hopes of a better salary then do that and keep chipping away at the debt. Slow and steady is the only way out of debt.