Managing $10K Debt and Saving Money While Living Rent-Free – Need Guidance

[SashaDean]

Hello everyone,

I’m in a bit of a financial bind and could use some advice on how to manage my debt while also saving money. Here’s my current situation:

• Debt: I have about $10,000 in debt that is accruing interest, and I’m looking for strategies to manage and reduce this.
• Living Situation: I will be living rent-free for about six months. Although I’ll have a longer commute to work, I only need to go in three days a week.
• Future Plans: After six months, I plan to find a roommate or shared housing to continue saving money.
  What are some effective strategies for managing and paying down debt, especially when it’s accruing interest? Should I prioritize paying off the debt first or focus on saving?

[Talker]

@SashaDean

I’m in a bit of a financial bind and could use some advice on how to manage my debt while also saving money. Here’s my current situation:

• Debt: I have about $10,000 in debt that is accruing interest, and I’m looking for strategies to manage and reduce this.
• Living Situation: I will be living rent-free for about six months. Although I’ll have a longer commute to work, I only need to go in three days a week.
• Future Plans: After six months, I plan to find a roommate or shared housing to continue saving money.
  What are some effective strategies for managing and paying down debt, especially when it’s accruing interest? Should I prioritize paying off the debt first or focus on saving?

Begin by detailing your income and expenses. With the benefit of not having to pay rent for six months, you can allocate more funds toward repaying your debt and saving. Be sure to include your commuting costs and any other essential expenses in your budget.

[Economist]

Create a small emergency fund of about $500 to $1,000 to handle unexpected expenses. This will help you avoid taking on additional debt if emergencies arise.