Hey Folks,
I just recently landed a new job that I will be starting on February 20th. I'm getting paid $63K a year, with an additional bonus of up to 10% of my salary per year. The bonus is paid out with half in June and Half in December. Lastly, the company does profit sharing which pays up to 2.5% of your salary into your 401K without you paying anything into it (they also do 401K matching, which I will be participating in).
They have also given me a $5K relocation bonus since I'm moving from Southern WV to just south of Pittsburgh, PA.
Now, I have terrible credit, my credit score is 423. My wife and I thought we were going to have to use our sizable tax return to pay for moving expenses. But since I'm getting the relocation bonus, we no longer have to do that. So, my plan is to use my tax return to pay off all of my negative debt (which is just a few thousand dollars).
I do have a substantial amount of medical bills and student loans. The medical bills I'm paying down, albeit slowly. The student loans (which are about $70K) I am using the REPAY plan which is an income based repayment plan that adjusts your payment based on income, and after you make 300 on time payment (25 Years) the remaining balance is forgiven and you pay taxes on the amount that was written off. Currently, my payment is $8 a month. So, I don't see a reason to concentrate on paying those loans off.
My goal is to be able to buy a house in a couple of years. Buying a house is actually going to help us tremendously with money. Renting a house in this market for a decent place in a decent neighborhood is around $1000/month. Yet, I can buy a house for around $500/month. I plan to save the bonuses I get from the company, along with any subsequent tax returns towards a down payment. Will paying off the bad debt and continuing with paying my medical bills and student loans be enough to turn my credit around?
Submitted February 01, 2017 at 09:30AM by FragMortuus http://ift.tt/2jvUvvw
