How to manage debt while working a full time job?

Create Reality

Master Don Juan
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In your opinions, experience, and knowledge... If you work a full time job which pays you by the hour, how should you limit your CREDIT spending in relation to your income and expenses? I think having at least 5 months expenses and credit payment immediately available is a good idea. But what do you think of how much credit should be used in relation to income after expenses? Many thanks.
 

Skel

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As little as possible or perhaps none at all would be my answer
 

Mr. Wolf

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No credit is best.

If you have 5 months of income and expenses, take away from that what you own to get a real number of months of income and expenses.

Credit is good if you using it to make money. You should be doing things on the side to make money.
 

Francisco d'Anconia

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No debt for disposables (gas, food, movies, etc). All other non-major debt should be paid off within a year. Long term debt (car, mortgage, student loans) should be at a single digit interest rate.
 

Create Reality

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I'm working out my finances and seeing how far I can extend my spending using credit. It's hard work! I will have to write myself a little computer app to make things faster :D
 

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spider_007

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Create Reality said:
I'm working out my finances and seeing how far I can extend my spending using credit. It's hard work! I will have to write myself a little computer app to make things faster :D
no need, just use excel.
keep in mind, that no debt isn't good eather. If your a young guy, and you try bying a house, or a car, and you have no credit rating you'll be very limited on what you can get.

If you don't have any other debt, charge something to your credit card, once a month, and pay it off the minute you get the bill.
If you have too much debth, pay off the one with the heighest interast, unless there is one bill that is considerbly smaller, in which case pay that off fist.
For example; lets say you have;
bill 1) 12000 @ 18%,
bill 2) 12000 @ 8%
bill 3) 5000 @ 8%
In this case what you would do is pay minimum on fist and second bill and rest of available money on the third. Once you paid off the third bill, pay minimum on second bill, and the rest on the first bill (which would be the minimum that you ware paying on that bill, plus the money you would have been paying for the third bill that you alredy payed off).......untill you pay all of them off.
 
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