I want to get out of debt. I currently have:

Account Balance APR Min Payment
Medical $3462 0% $85
Landlord $800 0% N/A
Student Loan $5685 6.25% 104
Credit Card $4934 9.9% 96

Total: $14081


My Monthly Income looks like this:

(These are based off minimum hours worked, I frequently work more hours but this is conservative based off minimum hours)

Job# Monthly Minimum
1 $2500
2 $400
3 $150

Total: $3050/monthly


My monthly expenses are as follows:

Expense Amount
Rent $725
Streaming Services $25
Food $300
Debt $285
Electricity $80
Internet $60
Gas $20
Eating/Drinking Out $200

Total: $1425


My credit score is currently 630. Job#3 is military reserves. I currently use a motorcycle as my primary mode of transportation, but the weather (snow is coming) is going to force me to either use public transit (expensive and unreliable where I live) or finance a vehicle.

My landlord is family, and the $800 balance is from a year ago when I was unable to make rent for a couple months due to a layoff. He is not charging me interest, but I would like to pay it off as a matter of good faith.

I am about to receive about $5500 in backpay. I currently have $1550 in an online high yield (2%) savings account as my emergency fund. I would like to grow that emergency fund to 2-3x my monthly expendatures.

I think it makes sense for me to use that small backpay to completely pay off my credit card (and start paying off the balance every month like a responsible person). A few credit score calculators tell me that would bump my credit score into the +650 range, where I could most likely get a decent interest rate on a used car (3-5%). I would like to finance a reliable, AWD car because I am considered essential personnel and need to travel up to 75mi for Job #1 and Job#3. I'm looking at some kind of AWD Subaru because they are great in the winter and tend to have good fuel economy. In the Spring/Summer/Fall I tend to ride my motorcycle everywhere and get about 100MPG, so this would mainly be something I would only drive for groceries/winter/rain. Probably less than 10,000mi/year. I am leery of taking on any more debt until I take care of my student loan and CC debt, but having a reliable vehicle will mean I can work a lot more. I would be able to make more money both by doing extra military drills (funerals, etc), as well as being able to travel around the state to do more overtime details. Two overtime details per week could net me an extra $1000/mo. I also have an opportunity to take Job #4, which would net about $100/night + tipout.

I also want to pay off my student loan as aggressively as possible.

What do you guys think of my plan, and would you do anything differently? Keep in mind my income can vary greatly from month to month, and sometimes I can even double my income from Job#1 depending on hours available.

I also have a TSP retirement account, a Roth IRA that I have not funded for several years (I've lost about 30% due to the market since 2008), and a state government retirement fund, as well as working towards a state pension (3 more years until I am vested). Eventually I would like to transfer my Roth IRA from my current provider (LPL) to something like Fidelity.

Any help is greatly appreciated!

submitted by /u/0532nerd
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