Question

Hi everyone!  I am going to be getting a lump sum of money from a car accident settlement.Hi everyone! I am going to be getting a lump sum of money from a car accident settlement. I’m going to be paying down all my credit card debt. I have a zero interest car loan with $12k left. Would you pay off the car loan and be officially debt free or would you save the remaining amount?  

Answer 1

Depends how much you currently have saved & if your comfortable with the amount you do have saved . We are pretty much in the same boat. I’m waiting on a car accident settlement too. With 8k left on my car. I’ll be paying it completely off with a basic emergency fund in place

Comments

@chu20 We both have our $1000 emergency fund and then also are saving for a wedding while paying off debt.  

Answer 2

Depends on how stable your job is due to the pandemic. If you are concerned, save it. If you feel like you will continue to work, pay off debt. I personally am doing #stormmode. Pay minimums and save the rest. When this is is all over, put that saved money on the debt payoff.  

Comments

@lev1 good point! I’m not working right now but getting paid through the government with a wage subsidy that’s 75% of my salary (I’m in Canada). I know I’m eventually going back to work and my job is still there I just don’t know when I can go back