My SO and I are currently evaluating if we should pull from our long-term savings account to pay down some debts. The debts we are looking to off down total approx $10,822: would be a mix of school loans, my husband's car loan, one credit card, and an newly amended property tax bill that is one-time only (we purchased a house last year, and have an additional property tax charge that we have not saved for - we put $800 a month into a property tax savings fund to cover our standard annual tax). I also have an additional $600 a month not currently budget towards anything that I could use to pay these things down over the next year. However, I am not currently maxing out my 401K. If we pay everything off from our savings and start with a clean slate, I can use that $600 to increase my 401K contribution and slowly "pay off" the money we are borrowing from savings. I would also replenish our savings with our 2018 tax return, estimated to be at around $6,000. Here is the breakdown:
Long-Term Savings/Emergency Fund: $32,000
Debts (does not include home loan, which I will be paying off until I die, because CA Bay Area)
Husband Credit Card: $1,548 (at 18%) - husband currently paying min
Husband School Loan: $1,994 (at 4%) husband currently paying min
Husband Car Loan: $2,350 (not currently paying interest as it is a family loan, but the family member would like to be paid off in full)
Property Tax Adjustment $2,600 due April (this will only occur once as it is a result of reassessing the value of the home based on our last year's purchase, we have a savings account that we use for our standard property tax)
My school loans: $2,300 (at 6.5% currently paying 200$ a month, but need to pay off by April 2019)
Submitted November 29, 2018 at 01:14PM by SensibleCitzen https://ift.tt/2rbCvIc
