I have got several thousand dollars of debt: 18K @ 5%, 3,400 @ 4%, 4,800 @ 10%, 15K @ 7%. I will receive approximately 10K soon. Should I save it all, part or use it all toward debt? My current savings is approximately 2K. I am maxed out on 401K. I budget with about 250.00 left each month. I am planning on getting married in approx 18 months.
2007-07-29 05:53:49 · 9 answers · asked by Streaker 2 in Business & Finance ➔ Personal Finance
If your debt is current, you should contact all your creditors and re-negotiate to lower your interest rates.
Then double up on payments towards your smallest creditor.
Once the smallest creditor is paid in full, continue to pay that same amount to the next smallest creditor in addition to what you already pay.
Eliminate your debt as quickly as you can as your income is your biggest asset. Just do not accept the offers of additional credit that are sure to come.
Deposit the $8K of the $10K you are expected to receive in a high interest savings account.
Maintain a strict budget that you and your fiance agree with.
Your primary goal since you are planning a wedding and start a family should be to secure as best you can your future for you, your wife and your children.
Do not blow a large amount of money on the wedding.
Remember, a wedding is a 5 to 6 hour event. Your life together should go on for many many years.
Money is not something that comes along easily. Therefore, you must be a good steward. Wealth is created with time, planning and wise decisions.
It sounds as though you are going to get a good start... Dont blow it.
2007-07-29 07:12:10 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Please, DO NOT do on line surveys....They are a big rip off. That being said, take your money and start with your least bill and pay it off, then go to the next one, etc. Keep $1000 in a money market account for emergencies ONLY! Get a budget going and stick with it. The less debt you have, the better you will be. Go to Dave Ramsey's web site and check out his budget helper plan. My husband and I did and now we have NO bills, no mortgage, nothing.
Also, keep in mind that you can start up a Growth Stock Mutual Fund with your bank and continue to earn money that way. But go read at Dave RAmsey....he's the best and doesn't want your money>>>>that's a plus.
2007-07-29 06:04:30 · answer #2 · answered by Anonymous · 0⤊ 0⤋
It's not impossible to save with having those debts, but I would recommend paying them off first. At least the big ones. If you don't, the interest on those loans will eat up any money you put into savings. My advice is to pay your debts as quickly as possible. If you put money in savings, you aren't really saving, just delaying when you have to pay back your debts.
2007-07-29 06:11:00 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Try to guess what you would earn on an investment. Let's say that you can earn 6 percent investing in a stock mutual fund. Yeah, I know it varies year to year, but that's an estimate. I would pay off all debt that is charging more than 6 percent, and invest the rest in a mutual fund investing in stocks.
2007-07-29 06:12:10 · answer #4 · answered by hottotrot1_usa 7 · 0⤊ 0⤋
put another 2k in savings, then use the remaining 8 toward your debt. Getting out of debt is super important!
2007-07-29 06:01:59 · answer #5 · answered by Emergia 2 · 0⤊ 0⤋
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2007-07-29 05:58:47 · answer #6 · answered by Anonymous · 0⤊ 0⤋
CB Budget planning is a great way to consolidate debt. they offer small payments. for about 12,000 in debt i only pay 168.00 per month. look online- there are based out of newyork.
2007-07-29 05:58:09 · answer #7 · answered by Erica G 1 · 0⤊ 0⤋
Pay down the 15k @ 7%. Use all of your 10,000k. It would be nice if you had no debts when you get married.
2007-07-29 06:01:13 · answer #8 · answered by Gary 5 · 0⤊ 0⤋
Buy & READ the book, "The Total Money Makeover" by Dave Ramsey. It will give you all the answers you'll ever need. Trust me it'll be the best $20 bucks you'll ever spend. Good luck!
Go to daveramsey.com
2007-07-29 07:48:32 · answer #9 · answered by bluegrassgirl115 1 · 0⤊ 1⤋