Alright, MMMer's. I'm sitting here, with my 401k contribution election form in front of me, debating what I should do. So, I'm here.
Here is the just of things.
Wife and I had our second kid in May, she got disability for a bit of her leave, and that was it. It killed us. We didn't do near as well as we thought we'd do while she was off work. So, facepunch away, but here goes.
We've got a credit card, 2, actually.
One is 0% interest, at $3,900 (taken on before her leave, was part of moving and redoing the house we moved into. Had the cash, but it would have depleted us completely, so we went this way.) This is 0% interest until 8/24/17. 0 issue with this card, I knew it was there, we are paying the $300 a month to squash it by the time the 0% expires. Will pay it quicker when possible.
Number two has a balance of $4,076.21 - this is an issue. I hate credit card debt. I don't really know where it came from, but it's here. Without running through the statement to degrade ourselves any more about our spending habits, I won't really know where we went wrong, and I know that.
However, going forward, they will disappear, until we are done and out of debt.
We have 0 problem covering our regular bills with our income, so this is all extra spending, and we don't have anything to show for it.
Anyways, why I'm here...
I've got an extra 1165 coming in my monthly check due to some commissions that have came in, and I'm debating switching my 401k down to 0% until the debt is paid off. This will "save" me $400 or so a month ($600 this month - employer contributes 3% regardless of whether we contribute or not), and allow us to put more on the credit card. We also have daycare reimbursement, which is $416.67, which will go right on the card as well. So, right there is 1k put towards it. 25% of it gone.
I do have 27k in an old 401k, and 9.3k in my current one (I'm 28, wife is 28), she has the state pension plan, which she can't change her contributions to. And while I know this will hurt us in the future, I think paying off the debt would eliminate my current money issues.
So, thoughts? Questions?