Quote:
Originally Posted by TLO
Hi everyone.
As some of you might be aware from my RR thread, I'm a gambling addict. I've been addicted to gambling since I've been of legal age to do so.
Luckily I haven't been of legal age to gamble for TOO long, and I don't think I've done any irreparable damage to my finances. (I'm trying to look at things optimistically).
I currently have about $50,000 in debt. This is a mixture of student loan, some medical bills, and loans I've used to finance my gambling. $10,000 in student loans. $20,000 in medical, $20,000 in personal loans and credit cards.
I've never had a lot of guidance financially, and obviously have been wreckless in my spending.
I'm putting the gambling behind me. I'm done. Now I'm just looking for some advice on how to get myself financially back on track.
I have about $1500 to my name. I clear around $1400 a paycheck every 2 weeks.
Any advice would be greatly appreciated.
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Good for you for making a turnaround. My quick advice is that paying interest is your enemy. Sort your debts by the interest rate, then try to find a way to convert them into lower interest rates via other types of financing. Then pay off the highest remaining interest rate debt first, putting all of the money you can against it. Then roll those payments into the second highest once you get it paid off.
I think a good rule for debt is to avoid it unless you're purchasing something that will give you a greater return than that debt. That generally means you should borrow only for education or job training, buying a home, or starting a business, and really nothing else. (Yeah, sometimes you might have to borrow for a car if you don't have cash for it. But if it gets you to a job it kind of counts in the same way.)