My soon-to-be spouse and I are of two different worlds -- I've by nature been a churner, 800 credit score, stashing money for retirement, etc. She revealed to me that she is in a considerable amount of debt. $33k+ in CC debt, $150k in student loan debt. She makes around $42k/year.
I've never really had to deal with this, so I'm kind of piecing things together. Read through the FAQ and wiki, trying to figure out where to start. Here's the breakdown that I have from her:
Card debt:
| Balance | Interest Rate |
|---|---|
| $5,150.44 | 25.24% |
| $5,242.01 | 22.99% |
| $4,939.69 | 18.24% |
| $1,628.26 | 25.24% |
| $5,095.33 | 25.15% |
| $3,269.57 | 29.23% |
| $2,455.48 | 27.24% |
| $5,072.94 | 27.49% |
She is currently in grad school, graduating next year. This will lead to a bigger salary, defers a good chunk of her loans for the time being, and we're thinking of applying the excess student loans to paying off some of the CC debt. We've stopped all unnecessary spending and have a good rent situation in a major city. We've altered our wedding plans to something extremely minor that would require very little financially.
I understand the avalanche method and all that, but should we explore a card with a 0% interest intro deal and a no fee balance transfer? Should I help her explore bankruptcy as a possibility?
Submitted July 30, 2019 at 09:42PM by FriedSeabass https://ift.tt/2Our2Sw
