Author Topic: help with bills.  (Read 2096 times)

snickers

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help with bills.
« on: December 18, 2015, 07:06:28 AM »
Kind of in a tough spot and dont know what to do. Have the following debt.

CC1 -  7000  at 15% interest
CC2 -  7000  at 15% interest
Car loan - 6500 @ 5% interest
Feb 1 2016 -  have a 3000-5000 dollar expense that must be paid.  Not sure of the exact amount yet.

Im scraping everything together that I can, and have 5k in the bank right now. I can save another 1200 by Feb 1.  Plus + a 2k tax return sometime next year.

Just not sure what to pay or how much.  Paying the bills is not a problem, but planning on getting married next year and would like to be as debt free as possible.   


« Last Edit: December 18, 2015, 07:10:03 AM by snickers »

ohana

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Re: help with bills.
« Reply #1 on: December 18, 2015, 07:18:55 AM »
What is the expense?  It's hard to be helpful unless you let us know what's going on.  If it has to be paid all at once, and you can't avoid it, you need to pay minimum on your other loans and save for that.

Otherwise, pay minimum on the car, pay down your CCs first.  They have a bigger interest rate.

Think about refinancing them through Lending Club or Prosper (etc) if you can improve the interest rate.

Stop using your credit cards!

thd7t

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Re: help with bills.
« Reply #2 on: December 18, 2015, 07:23:40 AM »
This is a pretty small portion of the picture.  I looked at your previous posts and didn't find much info except that you're looking to improve your finances.  Would you consider doing a case study?
http://forum.mrmoneymustache.com/ask-a-mustachian/how-to-write-a-'case-study'-topic/
It might help us know if there are ways that you could save more before your expense or pay down the cards faster.  I also think that investigating refinancing the cards is a good idea.

MDM

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Re: help with bills.
« Reply #3 on: December 18, 2015, 08:54:24 AM »
...a 2k tax return sometime next year.
In 2016, file as soon as possible (February?) to get that.

Today, increase the allowances on your W-4 to get more coming to you in each paycheck.  Stop giving the IRS an interest-free loan while others are charging you 15%.

In round numbers, each extra allowance will increase your take home pay by $4000 * (your marginal tax bracket).  E.g., if you are in the 25% bracket that is $1000/allowance so you would increase by 2 allowances.  In the 15% bracket it is $600/allowance so you would increase by 3 or 4 allowances.



AZDude

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Re: help with bills.
« Reply #4 on: December 18, 2015, 09:30:51 AM »
I'm guessing you have OK credit, since your car loan is at 5%, but you should still look into a consolidation loan that lowers the interest rate. Other than that, work extra hours, cut expenses down as much as possible, and pay off those ccs.