Question

I’m not sure what to do. I’m a single mom. I don’t have a job at the moment. I’m graduating college in June. Alimony ends in May. I get child support and a residual check from an MLM I joined years ago. I have $4900 in credit card debt and the interest is roughly $100/month. I have a strong desire to save up $4500 to cover the summer in case I don’t find a job right away. I have 1k in my emergency fund. I’m getting $3700 back in taxes. Should I pay off my credit card or put it in saving for the summer transition? One thought was pay off the card and if I hit hard times this summer then I can use the card but if I land a job then I’m saving all of that interest I would have paid. help  

Answer 1

Do you have an EF? If not, I’d say keep some as a safety but then rest at card

Comments

@dys51 personally I’d pay the 3700 towards your card so that you know you won’t be paying interest on it for the time being and then aggressively save alimony for any gal in income during the summer

Answer 2

I’d personally save 10% from taxes and pay off the cc. And save your alimony like crazy.  

Answer 3

Save 1000 for emergency fund then pay off credit cards and get any job this summer while you look for your long term job.  

Answer 4

Pay off the CC and get any job you can. Start looking now and see if they are willing to hire you once you are out of school. Some companies will agree to hire you months before you can actually start. My brother in law got hired in Nov and just started in Feb. Hubby got hired 3 weeks ago but can't start for another month.