So I was stupid a few years ago and racked up credit card debt. I applied to graduate schools and used my credit card to pay for consultants and GMAT prep. I kept spending money thinking I'd make money once I got a nice job after. I did get a nice job but then I got married, bills got larger, we moved to a better apartment. My wife started going to grad school so I started supporting her. Our car broke down. Got a new one using the credit card as down payment to have a $200/month car payment. I have managed to put 1.5K a month towards credit card repayment but it seems to not be making a dent for the past 3 years since stuff comes up. The rest of my saved money goes to building up an emergency fund and house down payment. We're almost ready to have a kid after my wife graduates next year so I've been feeling the extra pressure to save.
My boss told me today I'd be getting a 23K bonus with taxes and fees taken out that will be 16K. I have no clue the best way to tackle my financial issues.
| Card | APR% | Balance |
|---|---|---|
| Chase Southwest | 22 | 21,000 |
| Chase Freedom | 17 | 3,500 |
| Chase United | 20 | 4,800 |
Should I pay off the smaller balances first or tackle the largest? The southwest card is hitting me with a $300 monthly interest charge. The majority of my 1.5K a month goes to that but I'm barely making more than minimum payments on the other cards. Should I just keep the bonus and slowly keep paying off my debt. If I can keep the bonus as the emergency fund and house down payment and see if I can pay a bit more towards the cards?
Submitted April 20, 2018 at 06:51AM by 10inchschlong https://ift.tt/2HwCAAj
