Hello r/personalfinance!
Longtime lurker; first time poster.
I finally sold my house after years of fixing it up. With the current housing market, I was able to sell at my asking price which will end up being $107,000 after realtor and processing fees. I currently have $54,000 remaining on my home loan, so I'm anticipating a net of $53,000 after the mortgage.
However, I have also taken on a lot of debt with repairs and remodeling, in addition to a car loan, credit card, and student loans. Here is a quick breakdown. (all amounts are approximate).
| Personal Loan 1 | $8,600 | 8.6% |
|---|---|---|
| Personal Loan 2 | $2,600 | 7.99% |
| Car Loan | $5,900 | 3.49% |
| Credit Card | $5,700 | 0% (until 9/2021) |
| Total | $22,800 | |
| Student Loans | $20,000 (approx.) | 4% - 8% |
| Total | $42,800 |
Another factor in all of this is I just recently quit my job (ethical concerns with COVID; long story). I have one months salary heading my way ($4,200), a payout of unused leave ($2,500), and about a month of emergency fund ($4,000).
I feel comfortable that I will find employment within the next two - three months, and my partner is okay with providing some support with necessities.
My question: what would be the best use of this money? Would it be better to be completely debt free while looking for work and having approximately $11,000 to last me a bit? Or would it be smarter to pay off the high interest debt, make regular payments on the rest, max out a ROTH, and keep more on hand in case work doesn't come easily?
I was planning to pay everything off and then just work like hell to get another job. I'd like to know if this is smart or if there are other strategies that would be smarter!
More context: the only potentially big expense I have coming up is a new laptop. That's not a necessity, because I have a working one, but it's at the end of its days. I thought it was worth mentioning.
Looking forward to any insight I can get from y'all! The knowledge in this community has helped me pay off credit card debt and get my finances in order before, so I hope you can do the same now!
Submitted September 30, 2020 at 06:57PM by yachtwurst https://ift.tt/3l1rYJx
