| What should we pay off with our tax return? |
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csquiggle
New Member
Cash: $ 0.95
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Joined: 26 Feb 2017
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| What should we pay off with our tax return? |
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We got about $6000 back with our tax return. We currently have about $30k in credit card/personal loan debt, balances ranging from $2000 to $9000 , with interest on the lower balances of 5%, 8% and 14%. The larger balances are currently covered under 0% promos but those expire this year and then will be considerably higher at 20% or so. Our dilemma is, we have a vehicle we owe 19k on. Payments are $340 with 5.5% interest rate. Should we take about 4K and pay down the car to where someone will buy it and free up $340 to throw at other debts, or, throw all of it towards the cards to reduced those balances?
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Sun Feb 26, 2017 12:49 am |
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oldguy
Senior Member
Cash: $ 751.85
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Joined: 21 May 2006
Location: arizona
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quote:
$6000 back with our tax return.
First I would go to your HR Depts and get your W4s fixed. That way you could have paid off $6000 of that debt about a year ago. (and avoided paying that 14% interest - $840).
I would keep the car loan, a colateralized loan at 5.5% is a keeper (unless you want a different car?)
I'd put all of the $6000 on the revolving loans, the 14% first.
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Sun Feb 26, 2017 1:27 am |
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James Dj
First Time Poster
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Joined: 18 Feb 2017
Location: us
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| Spend It On Something You Want |
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You saved all year, and now you’ve earned the right to splurge a little bit. Don’t feel guilty about using the extra cash for a summer vacation or to treat your family to a nice dinner. Just don’t get carried away – a $500 refund is no excuse for a $3,000 trip.
:)
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Tue Feb 28, 2017 12:00 pm |
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