Question

Hi all!  Okay, maybe you guys can help me out.Hi all! Okay, maybe you guys can help me out. I recently split from my long time boyfriend- I’m back home with my parents for now. Because my ex took care of the car and house (not in my name), i currently have no car note/no mortgage/rent These are my debts; and I’m getting around $6000 refund. I have NO savings/emergency funds/literally no money put aside other than the $300 in my last paycheck. What should I attack first? Credit card: $4300 (0%) intro offer ends Feb 2021 -$50 a month Personal loan: $7000 (13%) -$240 a month Student loans: $6797 (6. 8%) $4671 (3. 9%) $1665 (3. 7%) -income driven payment/ $157 a month Thank you!  

Answer 1

You should save $1000 emergency fund before paying off any debts. When does your 0% period end for that first card?  

Comments

This is exactly what I was going to say.  

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Okay I edited my post- ends 2021! Should i put aside more than $1000?  

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I was going to say/ask the same thing. Also, what are you minimum payments?  

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I edited again for monthly payments. Thank you!  

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EF then CC unless you can commit to not charging a single dollar on it and paying $360 a month to knock it out before next year. Otherwise the interest charged will be a lot more than that loan. If you can do that I would throw the $5000 on the personal loan. Then when that is paid off switch to the student loans. If not I would pay off the CC first.  

Answer 2

If you don’t mind sharing what the minimum monthly payments are, that might be helpful in prioritizing the debts. How great that you’ve got this boost of income to get you going during this transition period. My first thought is $1000 (or whatever makes you comfortable) as an emergency fund. Then I would probably do the rest toward the personal loan, then use every extra bit of money you can find to finish off the rest of that ASAP so you can move on to the CC that needs to be paid off before Feb 2021. If you don’t think you can pay off the CC before the Feb interest kicks in, I’d do that one first.  

Answer 3

Last question! How much per month can you put towards debt after the $5000 from your tax refund?  

Comments

I make about $1400 per month, so I have 953 left over after the minimum is paid after that.  

Answer 4

$1, 000 emergency fund, $5, 000 to personal loan. Then I’d snowball the CC

Answer 5

Does the zero% go crazy high in February? Is it retroactive? Example-usually a store card will back date the interest but a visa doesn't back date the interest.  

Comments

It's USAA, it's not retroactive