Hi, everyone. You all helped me in the past so i thought i coukd get some help again 
im happy to report i got a promotion, large raise, and house in 2020! Im lucky that my situation was made better in the pandemic, and ive really been trying my best to appreciate that because i know thats not the case for many.
I had two major expenses in 2021--my dog had emergency surgery ($7500) and i had to replace my roof ($7900), otherwise, i would be further along in my debt repay,ent than i am. My grandma passed away last month and im awaiting a life insurance policy of about. $47000... The check should arrive by the end of the week. She pinched pennies her whole life so i want to honor her by using this wisely, as i know that she wants me to be financially secure (no shopping sprees or trips to dubai yet).
Im now 33 years old, a homeowner, single, animal parent, and i make $70k annually at my primary job and another $750 or so on the side hustle. so heres where im at. Im only listing cards with balances this time
Card -- Interest Rate -- Current Balance -- Limit -- % Used
Discover -- 16.49% $2423.06/$20,000.00 -- 12.11%
Chase 15.74% (but most balance is from 16.24% rate) $15,065.51/$15,500.00 -- 97.19%
Capital One -- 15.15% -- $3950.26/$5,000.00 -- 79%
Bank of America -- 11.24% -- $12,019.29/$18,600.00 -- 64.61%
total $33,458.12
Lending Club 11.02% -- $6,964.34/$14,400.00 -- 97.47% -- 25m left
Lending Club 16.08% -- $17,189.48/$25,000 -- 42m left
Total debt: $57,611.94 (im ignoring the mortgage).
cash in bank: approx $7000
retirement (401ks): about $35,000 but definitely fluctuating with the market and down now
now my plan was to take $40,000 and pay my larger lending club loan, discover, chase, and capital one in full, and the remainder to Bank of America. That will leave an additional $7k or so cash, lending club loan at $6964.34 and bank of america at $10,548.60, a total of $$17,512.94 on my lowest interest accounts.
i will have an extra. $1500/m and i thought i would pay $500 to debt and $1000 to savings. Im worried with the inflation and want to really start building my savings up and open a roth, which i havent been able to do up until this point. I also already have the house, so i have no large purchases planned for years (maybe a new car in a few...i have two cars owned outright that both run well, and im not really a car person anyways).
with all that said, im open to suggestions. Maybe i should just bite the bullet and pay the entiretly to debt and all $1500m until its gone? Pay other cards that make more sense? Pay loans vs credir cards? Im not sure theres a benefit to pating off either, or a disadvantage to paying everything at once.
thank you, all, in advance!!
ps sorry for the errors--im on mobile.
@annpalmer wrote:Hi, everyone. You all helped me in the past so i thought i coukd get some help again
I had two major expenses in 2021--my dog had emergency surgery ($7500) and i had to replace my roof ($7900), otherwise, i would be further along in my debt repay,ent than i am. My grandma passed away last month and im awaiting a life insurance policy of about. $47000... The check should arrive by the end of the week. She pinched pennies her whole life so i want to honor her by using this wisely, as i know that she wants me to be financially secure (no shopping sprees or trips to dubai yet).
Im now 33 years old, a homeowner, single, animal parent, and i make $70k annually at my primary job and another $750 or so on the side hustle. so heres where im at. Im only listing cards with balances this time
Card -- Interest Rate -- Current Balance -- Limit -- % Used
Discover -- 16.49% $2423.06/$20,000.00 -- 12.11%
Chase 15.74% (but most balance is from 16.24% rate) $15,065.51/$15,500.00 -- 97.19%
Capital One -- 15.15% -- $3950.26/$5,000.00 -- 79%
Bank of America -- 11.24% -- $12,019.29/$18,600.00 -- 64.61%
total $33,458.12
Lending Club 11.02% -- $6,964.34/$14,400.00 -- 97.47% -- 25m left
Lending Club 16.08% -- $17,189.48/$25,000 -- 42m left
Total debt: $57,611.94 (im ignoring the mortgage).
cash in bank: approx $7000
retirement (401ks): about $35,000 but definitely fluctuating with the market and down now
now my plan was to take $40,000 and pay my larger lending club loan, discover, chase, and capital one in full, and the remainder to Bank of America. That will leave an additional $7k or so cash, lending club loan at $6964.34 and bank of america at $10,548.60, a total of $$17,512.94 on my lowest interest accounts.
i will have an extra. $1500/m and i thought i would pay $500 to debt and $1000 to savings. Im worried with the inflation and want to really start building my savings up and open a roth, which i havent been able to do up until this point. I also already have the house, so i have no large purchases planned for years (maybe a new car in a few...i have two cars owned outright that both run well, and im not really a car person anyways).
with all that said, im open to suggestions. Maybe i should just bite the bullet and pay the entiretly to debt and all $1500m until its gone? Pay other cards that make more sense? Pay loans vs credir cards? Im not sure theres a benefit to pating off either, or a disadvantage to paying everything at once.
thank you, all, in advance!!
ps sorry for the errors--im on mobile.
It's a no brainer that you should pay off all the credit cards, then pay off the smaller lending club balance, then apply the rest to the remaining loan, and then when your scores have improved significantly, refinance the remaining loan with a credit union at a much lower rate.
Revolvers (CC's) and util %'s are much more sensitive to scores than loans. On the other hand. Since your on a pay off spree. The higher interest accounts to save $. Pay them off first. Once the loans are PIF. No more loans. Only need 1. The mortgage is an installment loan. Its great you've decidied to get debt in the past.
@annpalmer wrote:Ok thanks! I didn't know whether it was more advantageous to get rid of all the CCs first or if having 1 revolving and 1 installment (+ mortgage) would be a better "mix" for me. I hadn't thought about refinancing the larger LC loan, rather I thought it would be better to pay off since the interest is one of the highest rates.
1. It's more advantageous to your scores to get rid of the revolving balances.
2. Your scores will be in a different place than they are today, and you will be in a position to get a better interest rate on a loan.
Stop charging stuff that you cant pay back with your checking/savings cash flow. Pay them all off or atleast under 8% then put away for emergency reserves.
Starting Score: 512
"She pinched pennies her whole life so i want to honor her by using this wisely, as i know that she wants me to be financially secure"
💜💜💜 This melted my heart!
I second, or third, the pay off -and keep paid off- credit cards advice. Also maybe snowball with what's left, apply-all to a significant useful bill.
