Hi, I'm Active Duty Military and found out recently that I'm eligible for a bonus in the next couple of months. The bonus is $36,000 of which 25% will be taxed yielding me $27k. With how it all shakes out I'll actually receive a little under $26k. I'm wondering if I should use it to pay off my debts or invest/save it possibly in a retirement fund.
My current situation: I am 29, I have no savings or retirement and am living pay check to pay check. I have roughly $12,000 in credit card debt and I'm 2 yrs into a 6 year car financing that is upside down. My credit score is around 580.
As mentioned I have no savings and no retirement plan currently in place. I should also mention that the 25% income tax would not be applied on any amount of the bonus that I place into my Thrift Savings Plan (Tax Deferred Retirement). I'm most concerned about relieving my debt and improving my credit score right now, but obviously want to think about the future as well.
TL;DR Receiving $25k have decent amount of debt and poor credit, but also no savings/retirement, need advice on how to best use the money.
Thanks in advance for any advice.
Submitted May 10, 2017 at 04:21PM by LordYEET_CDR http://ift.tt/2plJSOT
