Welcome to the boards! I'd totally agree that the Amex should be the card that should come down as quickly as possible. Continue to just make the usual payments on the car, pay a tad more than the minimums on the Discover until the Amex is paid off and then throw what you can (including the bonus) on that.
Which Amex card do you currently have?
If you think it may be a while before you can completely pay off the two cards, you may want to consider possibly opening up a new credit card account for a balance transfer. The Bank of America BankAmericard is a great one for that, as it offers a $0 fee 0% APR balance transfer offer for 15 months, as does the Chase Slate card. Both are no-frills cards, but can be changed to great rewards-earning cards once you get the balance transfers paid off. Alternately, with a 3% fee (which is just over a month's worth on your Amex currently) you have a seriously wide range of options. I'd certainly suggest looking into PenFed Credit Union; two of their cards currently have 0% for 12 months offers, anyone can join (if not eligible in the conventional ways, you can join the National Military Family Foundation right on their website for a one-time tax-deductible $17 fee), and their auto rates are outstanding!
Speaking of auto rates, I'm a little confused on your auto loan. You mentioned it was a 48-month loan at 5.2% with a monthly payment of $99. Is there a balloon payment at the end? Because at $99 a month for 4 years, it sounds like you'd still owe about $2500 on it. Even at PenFed's 3.74% rate for 48 month used refinance loans, the monthly payments would be about $143 on a $6400 loan.
@Anonymous wrote:Hello! First time poster, and reader.
I'm 37, single mom, salaried position, max contribute (matching) to my 401k which is mid to highly agressive. I own my home ( mortgage) and just cleared out my "emergency fund" for a new fridge (it was a need, not a want, got a good Labor Deal and spent ~$500.)
I'd like to get my emergency fund in a better place, but also have some other debt to care of:
@Anonymous: $1400 @ 29.99% 55/mo( I was trying to use this to earn airline miles, and was doing ok until, well, I wasn't ).
Discover: $3162 0% until May 2019. 68/mo (paying off a tax bill from ACA.)
@Anonymous: $6400 @5.2% 48 month term. 99/mo (Not a bad interest rate, but because I'm in Michigan and car insurance in SO EXSPENSIVE, having the maximum required coverage on the car puts that bill around $200/mo)
Summer chidcare gave me a hit, so I've only been paying the minimums, but now that school has started I have some more in the budget to pay things down.
I get an annual bonus of ~3k after taxes. I know it's not good to count your chickens too soon, but I am confident I will get it again this year, possibly even more.
Which do I tackle first? Do I throw my bonus at the car or the discover? or pull out $1000 for emergency and throw the rest at????
If this is not enough info at all, please let me know!
I have great credit, 759, and I know in the scheme of things, It's not a ton of debt, but because I only have one income to rely on, I need to get these gone, to focus on saving and building a nest egg for my son and I.
thanks in advance!
You don't say what your limits are on Amex and Discover, but without knowing more I would say pay the Amex down to zero and the rest towards Discover.
