26, relatively small debts, moving abroad?

S

shanomac

Guest
Hello all,

This is my first post, so please excuse me if I've posted this in the wrong section.

I am considering a move to the USA in the coming months. The moving isn't necessarily a problem, I will be staying with family until I get on my feet and am lucky enough to have dual citizenship (Irish and US). Getting on my feet shouldn't be too much of an issue either, as I am a Software Engineer with 3 years experience. However, my debts are weighing heavily on my decision to emigrate.

I have an overdraft of €1500 that I have found impossible to get out of since it was created 3 years ago (the bank recommended I do this instead of taking a loan when starting a new position), as well as a credit card debt that consistently hovers around its maximum of €1100.

I would like to pay it all off before leaving, but I'm worried that I'll just remain here indefinitely due to all the "little emergencies" that keep me chained to these debts in the first place.

I have also been considering a consolidating loan, which would wipe out both debts as they stand and leave me with an affordable monthly repayment. I'm aware that this is often another trap which may end up simply heaping more debt atop the festering pile; however, I would cancel the card and the overdraft immediately to ensure that they are no longer an option, enforcing a degree of frugality and budgetary responsibility.

So, what are my options? And, according to your best judgement, which option would be the best?
 
Your debt is in the main very small, circa 2.5k. Without knowing what you are earning and spending it's not easy to give advice except to say that if you cannot pay off 2.5k in three years you seem to be budgeting badly. Note: Not a lecture but is there somehow you can cut down spending by say 300 to 400 per month ? What are the 'little emergencies' ? Given that you would need a minimum of 2k to organise flights and have some backing to get into the states would you consider paying that to the loans in one lump and then put off the departure ? Failing that, if you feel you can earn a lot quite quickly in the states just go and send money back as soon as possible.
 
You should probably do the money makeover thread. As you've stated it's a pretty small debt you have. A spending diary will help you identify the non-essential things that you're spending your money on.

If you're renting at present could you move to the family home for a few months before heading away? If not, just really examine all the areas where you can make savings. Even just bringing your lunch into work with you, not going out for a month will help you chip into the debt.
 
I'm earning €25000 PA at the moment (this was considered to be a temp position until I found something better), so there's only a little wiggle room left after rent, bills, groceries etc. I can't move home (Mayo) because I'm living in Waterford.

I tend to spend just about all of that every month. I have recognized that I simply can't afford to be terribly social any more as well, as I take frequent trips to Cork on weekends and spend roughly €200-€250 each time, although this has slowed considerably since March.

@dereko: where can I find that thread? I searched for it but couldn't see it.
 
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