Hello everyone. I have been an avid follower and occasional poster on the forum. Recently we have had a few life changes and I'm not sure exactly what direction I'd like to go so I thought I'd post here to get the community's viewpoint.
I'm 29, married with 2 boys age 2 and younger. I'm a federal employee eligible for special retirement provisions (I can retire as early as 50 but no later than 56). I will have a pension and TSP assuming big governmental changes don't whipe that out.
Stats about me:
- Current salary makes things tight on a family of four and we have accumulated some debt because of that
- I'm scheduled to transfer in the next 2 years to a new position with a 75% pay increase
- I was recently approved for VA disability for an injury incurred during active duty which should easily close our current pay gap. No further debt accumulation expected.
- Contribute 5% to TSP with 5% match
Current Debt:
- $11,000 auto loan
- $14k credit card due to some medical issues with my son and also us not quite being able to make ends meet each month
- $20,000 student loans (spouse)
We just bought a house and our mortgage should be $200-300/Month less than we pay in rent now plus with the added VA pay we should be fine until the transfer. I also received an inheritance of $9,000.
Question: What is the best way forward? I've thought about using the $9k to payoff the car loan and open up another $300/month of usable income to payoff CC. But the auto loan is only at 2% while the credit cards are at 15%. I was able to move half the balance to a 0% balance transfer card for 21 months so at least that balance isn't accruing interest in the meantime.
The auto loan doesn't bother me but the credit card debt stresses me out everyday. I just want it gone ASAP but I worry that the remaining 5k in cc debt will be difficult to payoff until I get my job transfer.
I also irrationally love seeing that $9,000 sitting in my account and I feel like that's part of the reason I'm paralyzed with this decision.
Help!
I'm 29, married with 2 boys age 2 and younger. I'm a federal employee eligible for special retirement provisions (I can retire as early as 50 but no later than 56). I will have a pension and TSP assuming big governmental changes don't whipe that out.
Stats about me:
- Current salary makes things tight on a family of four and we have accumulated some debt because of that
- I'm scheduled to transfer in the next 2 years to a new position with a 75% pay increase
- I was recently approved for VA disability for an injury incurred during active duty which should easily close our current pay gap. No further debt accumulation expected.
- Contribute 5% to TSP with 5% match
Current Debt:
- $11,000 auto loan
- $14k credit card due to some medical issues with my son and also us not quite being able to make ends meet each month
- $20,000 student loans (spouse)
We just bought a house and our mortgage should be $200-300/Month less than we pay in rent now plus with the added VA pay we should be fine until the transfer. I also received an inheritance of $9,000.
Question: What is the best way forward? I've thought about using the $9k to payoff the car loan and open up another $300/month of usable income to payoff CC. But the auto loan is only at 2% while the credit cards are at 15%. I was able to move half the balance to a 0% balance transfer card for 21 months so at least that balance isn't accruing interest in the meantime.
The auto loan doesn't bother me but the credit card debt stresses me out everyday. I just want it gone ASAP but I worry that the remaining 5k in cc debt will be difficult to payoff until I get my job transfer.
I also irrationally love seeing that $9,000 sitting in my account and I feel like that's part of the reason I'm paralyzed with this decision.
Help!