No credit card required
Browse credit cards from a variety of issuers to see if there's a better card for you.
It is expected, the photo is understandable, but anyway I've been irritated on where to go from this point. I understand it's wounding to keep holding debt but it's also a pain to suffer to merely yield something that you didn't implement... (family) - but anyway with everything that is going on right now in the world. I thought I would aspire to this community for advising on moves in this position. - I feel terrible because I started this all late (401k Stocks, HSA, RIRA, etc. whatever - Still learning) ... but I do have between 120k - 150k in terms of multiple credit cards and credit scores "Credit Karma: "761/743" - by the way I'm in California area. - stay with parents only by my own options to save money instead of occupying an apartment, even though I'd preferably be on my own.
Please send any advise and thank you.
1. contributing to your 401k
A: I've just started this job in 2019, you see I was working under-table for almost 10yrs after leaving high school. (Did go to college.) - I didn't start 401k because well I can't until after 1 year has passed, and employer match is off due to COVID anyways for the foreseeable future. - plus this was alot more default in the past because of other things that happened in the past.
2. You live at home with your parents (I assume your girlfriend lives elsewhere)
A: I actually used to come and go when she was living with your grandparents - I've been with her during the passing of both her grandparents passing and funerals. She also has some of her own credit cards where we share them - Target Credit Card she has it but we only use 1 account via app if we ever went to Target (for example) - she used to have bad credit (due to her mother etc) but over the years while I was learning I was able to fix her credit at the same time. (And she actually lives with me and my parents after everything that happened with her grandparents.)
Well, you have a great nest egg at least! It looks like most of your cards are PIF every month with the exception of the two with the balance at 0% for now. You have the money to pay then off, so that's always an option. Or you can plan out your remaining monthly payments so that you don't pay interest. You might want to do a combination - throw down half at each balance and pay off the rest over several months. Do you have a budget at least? Figure out what your monthly expenses are and then save & invest as much as you can with the rest.
1. $10,000ish in INVESTMENTS
2. $20,000ish in SAVINGS (1.00% APY)
3. $3000ish Checking (Mine)
4. $1700ish Checking (Her)
----------------------------------------------------
TOTAL: $34,700ish
----------------------------------------------------
5. Her Car: $6,500ish
6. My Car: $13,500ish
----------------------------------------------------
TOTAL $20,000
----------------------------------------------------
7. BIG DEBT CREDIT CARDS (Besides main Credit Cards)
A. $4900ish
B. $2700ish
------------------------------------------------------
TOTAL: $7600ish
------------------------------------------------------
Lately I've been wondering if it's good to buy a house if you knew you might be able to do so with this cash? (assuming if we could... )
1. Buy a House? (IF I EVEN COULD ANYWAY...)
2. Pay of the Cars? = $20,000 - $34,700 = ($14,700)
3. Pay of the Credit Cards? = $7600 - $34,700 = ($27,100)
4. Pay of both Credit Cards and Cars = $27,600 - $34,700 = ($7,100)
5. $10,000ish of that would have to be pulled out of the INVESTING that I have done, and I wouldn't have anymore and would have to start over again, if I did have to use it of course.
I just don't want to make any mistakes, like i've already done in the past.
Should really post the APR's of your various things.
General thoughts
Speaking from a long term investor standpoint:
Ultimately the righteous course is just look at the arbitrage play aka opportunity cost of the transaction to use more technical terms. If the historical return in the market is above the interest rate you are paying, stay invested... if it's not, cash that out and airstrike the debt. Personally I apply the same to the savings account but I know I break some conventional wisdom by just using my brokerage account as my savings as well... if I have to sell something to pay off a short-term financing issue, oh well.
@JetOneTV wrote:
It is expected, the photo is understandable, but anyway I've been irritated on where to go from this point. I understand it's wounding to keep holding debt but it's also a pain to suffer to merely yield something that you didn't implement... (family) - but anyway with everything that is going on right now in the world. I thought I would aspire to this community for advising on moves in this position. - I feel terrible because I started this all late (401k Stocks, HSA, RIRA, etc. whatever - Still learning) ... but I do have between 120k - 150k in terms of multiple credit cards and credit scores "Credit Karma: "761/743" - by the way I'm in California area. - stay with parents only by my own options to save money instead of occupying an apartment, even though I'd preferably be on my own.
Please send any advise and thank you.
I agree with others, you're in an okay position. Straight up first, I'd sell the car, free up 300$ to put towards your debt. Given your ~34k$ in cash and investments I imagine you have equity in your car. Cash that sucker out, get a car you own for cash, its amazing what you can get for 10-12k$. Sucks to say, I love cars too but man they light cash on fire!
Next up for me would be that 23% interest, that has got to go! Then roll on buring thru the debt.
I might even look into consolidating my investments into one account/brokerage for ease of tracking maybe make even make a little extra by consolidating.
I don't know if these thoughts are helpful.
Good luck!
First off, you are on the right track to have an accounting of your debts and to understand where your money is going.
I would suggest paying off the credit card debts as an immediate next step. I know there are some debates on the topic, and I too have used 0% APR offers when I had the money in the bank to just pay a card. In a way though it is just artificially inflating your account balances. If we were talking much bigger balances and you had the money working for you and earning it might make sense to hold onto the 0% debt but since you have the funds I say pay it.
If you don't already have a budget, making one to avoid having the high balances again is a given.
Not sure where in California you are, or what kind of house you are looking for. You mentioned a desire to perhaps buy a house, I don't think that getting a loan would be possible for you simply based on DTI. If I were you I would take advantage of living with your parents for awhile longer.
Lime @CBartowski, you should consider selling the car and getting something for cash.
Getting out of debt and taking advantage of living at home should allow you to rebuild your reserves again. You will be much happier when you have no debt and a savings account that looks like your current account.