How do I crawl out of this debt? - Fixing my life before a recession happens

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Da Brony Unchained

Da Brony Unchained

kiwifarms.net
Joined
Mar 15, 2023
I fucked myself the past two years by taking my whole paycheck and acruing 40k in irs debt.

I’m not too stressed because I make 120k+ right now (just received a raise), and I do contract work making an extra 2-5k a month.

A quick overview of debts:
Car- 7k
Credit card- 14k
Irs - 40k
Student debt- 22k


I’m willing to be more extremely frugal and argue with my girlfriend to get my way. I have a goal to save up the whole amount of what I owe by the end of this year. Then pay it all off. For two reasons.

I fucking hate the job I’m working right now, and I want to get out of it and start finding financial success elsewhere, outside of mainstream corpo jobs. They literally cuck the energy out of you. I want to be able to say shit about them and call out how horrible certain people are that I’ve interacted with without fear of repercussion.

Second. Moody’s analytics predicts a recession by the end of the year. I don’t want a single ”wife’s boyfriend” glowie cuck knocking on my door, or any US government entity keeping their eyes on me because my hard work and talent got me access to money they’d love to squeeze from my milkers.

My questions.

Do you think that it’s possible to be happy and get it together by the end of this year? Should I think about the next two years?

Should I be concerned about the recession? A lot of things are changing.

How would you go about handling the $$? Just saving it? Do I pay it all off or hold on to all the money?

Am I going to be okay? Me and my girlfriend want to get a home before we get married. I didn’t think I’d ever make this money in my entire life, and dysfunctional family shit / bad habits followed me late into my life until now. Thank god I’m at least self aware.

I’m scared. Seriously. But I know I need to keep going, fix these mistakes. I know I can still be saved.

And now, I expect the casual throat-fucking criticism. Any help would be greatly appreciated.
 
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Getwhatyou said:
You act like you earn alot of money. Truth is you don't.
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Thought it was obvious that I come from a poor family when I said it was the most money I’ve ever made in my entire life?

Help me out sir. With the little scheckles I make, can I get myself out of this debt in 1-2 years so I can keep everything I make and start making longterm financial plans for a home and $$ independence?
 
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Da Brony Unchained said:
That financial advisor? Have you used any of his programs/ products?
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lol no I don't have debt problems. But he has a very good reputation and I've listened to his radio program before. Honestly, you're probably not his target audience - he mostly preaches to financial illiterates in much worse situations than you. I don't know what kind of cost of living you have or unnegotiable expenses (like a mortgage or car payments), but if you don't have those things, that's a situation where you could easily just pay it off in one year, I live on $30,000 a year at this moment. One of my intentions was to buy a shitty trailer or such the first year I have a real job by living at the same standard of living I am now, and then build my home.

But his stuff is just solidly common sense and it works in general. If you don't have self-control issues with spending you could probably find better advice. (Ramsey focuses a lot on psychology, so he advises financial strategies that are retarded from a cost-minimization point of view but successful from a will-I-stick-to-it point of view).
 
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Tell them you have no debt and when they ask how you reply :
 
Credit card debt first and as fast as possible. The interest on that is atrocious. Then cut the fucking things up, except for one for emergencies only, and pay it off in full every month without exception.

Tax man - arrange a payment plan with them and stick to it. Tempting to save and lump sum them at the end of the year, but they'll get very interested in where the money "suddenly" came from after two years. Having the infernal revenue crawling up your financial ass for actually paying them off is NOT something you want. It's even more infuriating than the initial tax bill.

Car - dunno. Never been dumb enough to take a loan for anything that can be wiped out by one moron taking his eyes off the road for a second.
 
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You make 120k+ a year. You will be fine.

I know you don't like your job, but suck it up, and don't even think about quitting until you either have firm job offer for something better, or 6 months to a year of expenses saved up.

Learn to budget. Figure out all your monthly expenses. Include everything, food, bills, etc. Once you have that number, how much do you have left over per month? Of that leftover amount, I would save 10% in ready, actual cash. You want to build an emergency fund of about $2,000.00, in actual, physical cash. That way, if an emergency hits, you can just pay for stuff, and since it is cash you don't have to worry about it being taken by the bank or anything like that. Obviously, only you and your SO should know it exists/where it is. This is only for actual emergencies too. Ie, you or SO need to go to the ER, the car breaks down, etc. Use that 2k to pay for it without having to use a credit card. I'd also set a small allowance for derpy shit per month, just so you don't feel super deprived, but don't overdo it. I wouldn't make this more than 200.00 per month, and if you can't afford it, do without. Whatever else you have, use that to make overpayments on your debt(the prescribed monthly minimum payments should be listed as part of monthly expenses). Mathematically, you should target debt with highest interest rate, since that will get you out fastest. Personally, I'd pay off the IRS first, regardless of interest rate, because they are scary motherfuckers that can and will destroy your life if they feel like it. Also, going forward, do your taxes right or hire someone competent to do them right for you.

Once you get the 2,000.00 in cash for emergency fund, put the money you were using to build that towards your overpayments too, and as you knock out debts, keep adding the money you were using on minimum payments to the debts you have remaining as well. Once you are debt free, start saving that money for a down payment on your house.

EDIT: spelling/grammar

EDIT 2: Adding answers to your direct questions:

Do you think that it’s possible to be happy and get it together by the end of this year? Should I think about the next two years?
That is going to depend a lot on your cost of living. Happy probably isn't in the cards, being broke is never fun. Soldier through though, and you will free yourself.

Should I be concerned about the recession? A lot of things are changing.
Yes and no, keep up connections in your field, and always keep a resume ready. Unfortunately though, you will need to ride the tiger, so I wouldn't obsess about it, and I would maybe only check the news once a week or so. Focus on your job and your family.

How would you go about handling the $$? Just saving it? Do I pay it all off or hold on to all the money?
Pay it piecemeal and focus on the higher interest stuff first. The reason is, the longer you let it run, the more you will pay for your debts and you will pay waaaaay more than the principal(bank speak for initial amount you are in debt) since interest keeps getting tacked on.

Am I going to be okay? Me and my girlfriend want to get a home before we get married. I didn’t think I’d ever make this money in my entire life, and dysfunctional family shit / bad habits followed me late into my life until now. Thank god I’m at least self aware.
You will be ok. Work hard and learn from your mistakes. You probably did pick up some bad habits from your childhood. View them as outmoded survival strategies. They may have helped you survive the chaos of your childhood, but are no longer helpful in an adult environment. Let them go and adopt useful strategies to match your new financial environment.

I’m scared. Seriously. But I know I need to keep going, fix these mistakes. I know I can still be saved.
You can do it. It sucks to go through, but be persistent.
 
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56 others said:
spend less on candles
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No!

Also OP, knowing your debt and income is pointless unless we also know your monthly cost of living / expenses.

What do you do job-wise atm btw?
 
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No way to be debt free in a year. But the student debt may not be that bad interest wise. Don’t buy a house with a girlfriend, that’s for wife’s only.

You need a $35k post tax surplus each year to pay this off in two years. You’ll have to budget a lot more stricter than what you’ve done to get in this mess.

Prioritize the credit card. Never carry a balance in the future and stop using it until it’s paid off fully.
 
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Don't over do it or you'll give up. It's like when fatties try to lose weight. They go all or nothing and give up. Ideally you'd pay it off asap but you don't want to be so miserable that you give up and make things worse. Be realistic. If it takes a bit longer but you get there in the end then it's all good
 
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You'll be fine because you have income. The part that's missing in your post is your expenses or bank account. You say you didn't have any withholding. So either you have the money in your bank account or you have a huge spending problem. Fix that before thinking about debt. Pay cc first. Work out a payment plan with IRS and student loans to get a low minimum.

Actually the more I read your post, the clearer it is that you are actually retarded. How can you think it is a good idea to save cash and pay off your loans in one payment.
 
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