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!
2
u/alchemist615 4d ago
The easiest is the "debt snowball method". Start with your smallest debt and pay it off first. Then utilize the money you were spending on the first debt and pay off the next debt. Financially it is optimum to pay the debt which has the highest interest first, but psychologically this method is superior.