Need advice on my personal finance |
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no.moredebt
First Time Poster
Cash: $ 0.25
Posts: 1
Joined: 25 Aug 2016
Location: georgia |
Need advice on my personal finance |
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I am a 29 year old male. 3 years ago I got into day trading and racked up some serious debt.
I started off using my own money in the bank. about 4,000$. lost it all. funded my account with another 4000$. lost that. I then used 18,500$ in credit cards. lost all of that. stupid me just did not want to give up on a dream. So over the course of my day "trading career" I lost about 26,000$.
Now that I have given up on it and am broke, I am trying to dig myself out of this mess and get my life back, along with my credit. I had 5 credit cards that I borrowed from. 2 of them were big ones with 7500 limits. and the other 3 were 1000 and 2000 ones which I paid off early this year using my tax returns.
So in the end I am left with about 12,500$ in cc debt that is killing me each money with close to 400$ in monthly payments, I do not make alot of money, roughly 1750$ a month, which I have rent, car payment, cell phone, insurance, and currently a 200$ dental bill each month.
I am desperate to get my financial freedom back and not be tied down making the minimum payments each month. I want to get rid of the credit card payments asap, I am going to be getting a car buy back from volkswagen in a few month, to pay off my car in full and I should have about 4,000$ left back to me. Should I take the money and put in all towards the credit card debt, or pocket it as i am currently living pay check to pay check. ,My goal is to be able and purchase a home in the near future, my credit score is near 670. so I want to get that up, but I also need a down payment on a home.
Any advice for me messed up financial world would be a huge help! Thanks for reading
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Thu Aug 25, 2016 3:09 pm |
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oldguy
Senior Member
Cash: $ 751.85
Posts: 3656
Joined: 21 May 2006
Location: arizona |
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quote: using my tax returns
If you want to stop over-withholding and get that extra money as you earn it, you can turn in a new W4 at work.
quote: I should have about 4,000$ left back to me. Should I take the money and put in all towards the credit card debt,
Yes, use it to pay down the highest interest CC loan.
That cuts your loans down to $8500, way more manageable. Keep paying the $400/m, the loans will be paid in about 2 years.
Rather than day trading, do the OPPOSITE, put a fixed monthly amount into an SP500 Index and never sell, just keep adding forever no matter what the market does. The SP500 has a longterm average return of about 11%/y. Look at history, that method is how us old rich guys got rich.
Eg, if you invest $500/m for 30 yrs, you will have $1,350,000 at age 59. If your goal is higher, adjust the input - $1000/m = $2.7M, and so on.
It looks like your salary is about $30,000, maybe you could improve your skill-set to make yourself more valuable to employers, it would be a lot easier with a $60k income. (For comparison, 18-wheeler drivers earn around $60K - and I see "help-wanted" on the back of most rigs).
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Thu Aug 25, 2016 8:46 pm |
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ArtsMoneyTalk
New Member
Cash: $ 1.40
Posts: 7
Joined: 02 Sep 2016
Location: Los Angeles |
first - stop day trading, it's extremely risky. it's more of a gamble than investment. also if you are going to gamble, don't borrow from credit cards (which have 20% interest) to do it
second - if you're living paycheck to paycheck and it seems impossible to pay off this debt, have you considered filing for bankruptcy? it will destroy your credit for years but at least you'll be able to save up some money and get on the right track. i'm not saying do it but at least you should know it's an option.
can you possibly take another job or work nights to make more money to pay down the debt? credit cards have very high interest, and you should try to pay them down as soon as possible.
i hope this helped, good luck
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Fri Sep 02, 2016 8:09 am |
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ning
Member
Cash: $ 2.00
Posts: 10
Joined: 04 Sep 2016
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Re: Need advice on my personal finance |
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quote: Originally posted by no.moredebt I am a 29 year old male. 3 years ago I got into day trading and racked up some serious debt.
I started off using my own money in the bank. about 4,000$. lost it all. funded my account with another 4000$. lost that. I then used 18,500$ in credit cards. lost all of that. stupid me just did not want to give up on a dream. So over the course of my day "trading career" I lost about 26,000$.
Now that I have given up on it and am broke, I am trying to dig myself out of this mess and get my life back, along with my credit. I had 5 credit cards that I borrowed from. 2 of them were big ones with 7500 limits. and the other 3 were 1000 and 2000 ones which I paid off early this year using my tax returns.
So in the end I am left with about 12,500$ in cc debt that is killing me each money with close to 400$ in monthly payments, I do not make alot of money, roughly 1750$ a month, which I have rent, car payment, cell phone, insurance, and currently a 200$ dental bill each month.
I am desperate to get my financial freedom back and not be tied down making the minimum payments each month. I want to get rid of the credit card payments asap, I am going to be getting a car buy back from volkswagen in a few month, to pay off my car in full and I should have about 4,000$ left back to me. Should I take the money and put in all towards the credit card debt, or pocket it as i am currently living pay check to pay check. ,My goal is to be able and purchase a home in the near future, my credit score is near 670. so I want to get that up, but I also need a down payment on a home.
Any advice for me messed up financial world would be a huge help! Thanks for reading
You can start doing online marketing as a side and you don't need even lots of investment for that just hard work and few hours of your time if you are willing to dedicate that then earning a good income isn't that hard.
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Thu Sep 08, 2016 6:18 pm |
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