I owe about $60,000 in student loans. I owe $15,000 in credit card debt. I have no trouble making the monthly student loan payments, and I have no problem making at least the minimum monthly payments on my credit card. The credit card company just lowered my credit limit so that I am nearly maxed out.
In order to get to and from work, I have to pay ten dollars a day in tolls which adds up to $2400 a year. The toll charges go directly to my credit card, and at the end of the year, I use my tax refund to pay off the entire year’s worth of tolls that have added up. This will not be possible now that my limit has been lowered. If I have the toll charges taken directly from my bank account, living will be very tight for me.
What can you recommend to alleviate my current situation?
Simple solution. It appears that if you are getting a big tax refund check back at the end of the year you are having too much taken out of your check each month when you need it. Just adjust your tax withholding so you will break even at the end of the year. This will put more money in your pocket each month to pay the tolls.
With the extra money now in your bank account, have the tolls debited from that and you won’t have to worry about the credit card at all.