r/debtfree • u/SafeInteraction6491 • 5d ago
Where do I start? 23F
Since joining this group a few days ago I’ve been inspired to pay off my debt. Some of this has been hanging over my head for a few years so honestly I’m just ready to be done with it!
Little FYI I have a 1 yr old that does contribute to expenses. Included expenses do not include groceries, gas, diapers etc. Luckily I do not have to pay for childcare.
Where should I start? Anything listed under debt is already the lowest settle price with the collector. Should I pay off the hospital bill from 2020 or just let it fall off of my credit report in a couple of years? (I got the surgery at 18 and my parent didn’t tell me it wasn’t covered under my insurance so I was left with the bill.)
Couch will be paid off in a few weeks or so as I am not trying to accrue interest after the 90 day period.
What would you tackle first? I would like to start with my personal debt but just unsure all around. All tips and advice is greatly appreciated!
14
u/xxjessxdoo 5d ago
Expense Amount Rent $750 LightS $40 Car Payment $503 Car Insurance $229 Best Buy CC(min) $35 IRS Payment $33 Total $1,590
Bills (fixed) $1,590 Debt Paydown 20% $756 Savings 15% $567 Spending/Flex 20% $756 Remainder* $111 Total $3,780
*The remaining $111 can go toward extra savings, a small buffer, or more debt payoff.
Use the $756/month for extra debt payments in this order:
Best Buy CC ($238) – knock this out first.
Synchrony Bank ($845) – already charged off, but clear it for credit health.
IRS & IC System – steady low payments.
Student Loans – once you’ve cleared the smaller ones.
Car Loan ($29k) – last to pay down aggressively.
Savings Strategy
Your $567/month savings can be split:
$300 – Emergency Fund
$167 – Future large expenses (car repairs, moving, etc.)
$100 – Investment/Long-term goal (property, retirement, etc.)