Quote:
Originally Posted by dapperfied Right now her rent is $1400 + living expensive and what not = $2400-/+. Single.
Net income is about $3200. |
I can help her out.
All jokes aside. She appears to be in an emergency already if you ask me. So why not use her emergency fund to get out of debt?
All it takes is discipline. I think if she manages, she can lower her monthly living expense (food, bills, going out, etc.) And if she can, move out to a cheaper place. Living by herself for 1400 is a little much.
With that said, I would pay the 5k lump sum and 2k and then put whatever she can towards the provincial loan. Then slowly pay off the rest.
1. Set priorities
2. Make staying on priorities, priority
3. If under any circumstances, where life and death is not a factor, stay on those priorities.
In my opinion, people always wanna keep some money for emergency but if you think about it, loans that rack up interests, especially high balance loans like hers,
IS an emergency. Nothing will drain a person's life more than compounding interests. The faster she gets those debt out of her life, the faster she can be worry free.
Does she have a credit line or a high credit limit credit card with low balance transfer interest rate for a period of months? Because those can act as emergency funds when she absolutely needs it.