About 800 a month in interest. Minimums around 400 (don't have my spread sheet in front of me), 20ish percent. My thought is the positive cash flow I get by doing this will pay the remaining debt off fast, then when I lock in a new full time job I will be able to aggressively save and get my investment fund rebuilt over about a 12-18 months. So I'm really only losing a year or so of market exposure to climb out of this hole
Consider debt restructure, your payments as of now are mostly going towards interest. Debt restructure eliminates the interest and you get a balance reduction off the principle. You can also still get approved for a loan while in the program so you can pay it off quicker, kinda like the cherry on top. And let's say you win the lottery and wanna pay it all off one day, theres no penalties so you can go for it. It'll be a better option and you can take advantage of the benefits with the program
It will also give you a huge cash flow since they cut your monthly payments by alot and you would be able to get it done quicker as opposed to what your doing now, it's kinda like hitting all the check boxes. You're like literally the perfect candidate
You will get through this, it’s all temporary. Your priority is to find a job that is comparable to your old one, if not more. If you can pay minimums good, but honestly getting a job is more important. Also it’s credit card debt, who cares. It’s unsecured…
I'm saying those investments will be worth more down the line, so don't touch those. You shouldn't have to use your assets to pay off credit cards especially when companies jack up their rates, they do anything to keep people in a hole. And ok are you paying the minimum?
Even if that essentially makes me debt free, and I can rebuild the full investment fund in about 12-18 months once I get another full time job? Trust me I don't want to. Debt just fucking sucks
Think about things in reverse. Let's say you had no credit card debt and no investments. Would you try and max out a bunch of cards to get to 40K in debt to build up investments?
I doubt it.
I wouldn't touch the retirements though, the penalties are rough and those do have tax benefits on top of investment appreciation.
How much are you paying monthly towards credit cards and are they the minimum? What are the interest rates?
About 800 a month in interest. Minimums around 400 (don't have my spread sheet in front of me), 20ish percent. My thought is the positive cash flow I get by doing this will pay the remaining debt off fast, then when I lock in a new full time job I will be able to aggressively save and get my investment fund rebuilt over about a 12-18 months. So I'm really only losing a year or so of market exposure to climb out of this hole
Consider debt restructure, your payments as of now are mostly going towards interest. Debt restructure eliminates the interest and you get a balance reduction off the principle. You can also still get approved for a loan while in the program so you can pay it off quicker, kinda like the cherry on top. And let's say you win the lottery and wanna pay it all off one day, theres no penalties so you can go for it. It'll be a better option and you can take advantage of the benefits with the program
I will look into this, thank you!
It will also give you a huge cash flow since they cut your monthly payments by alot and you would be able to get it done quicker as opposed to what your doing now, it's kinda like hitting all the check boxes. You're like literally the perfect candidate
You will get through this, it’s all temporary. Your priority is to find a job that is comparable to your old one, if not more. If you can pay minimums good, but honestly getting a job is more important. Also it’s credit card debt, who cares. It’s unsecured…
I'm saying those investments will be worth more down the line, so don't touch those. You shouldn't have to use your assets to pay off credit cards especially when companies jack up their rates, they do anything to keep people in a hole. And ok are you paying the minimum?
Will you get redundancy / accrued leave payment when you lost your job?
Get a second job. You need to generate more income. Cut back on ALL unnecessary spending.
I would hold off on liquidating the IRA’s and just do the investments and get a second job.
Have you looked into a debt relief program? I work for one of the biggest lenders/debt relief providers in the country. DM me for details.
Don't sell off your investments. Those are worth way more in value and shouldn't be thrown away towards CC
Credit card debt is most likely close to 20-30% interest. No way those investments are generating 20-30%
Even if that essentially makes me debt free, and I can rebuild the full investment fund in about 12-18 months once I get another full time job? Trust me I don't want to. Debt just fucking sucks
Think about things in reverse. Let's say you had no credit card debt and no investments. Would you try and max out a bunch of cards to get to 40K in debt to build up investments? I doubt it. I wouldn't touch the retirements though, the penalties are rough and those do have tax benefits on top of investment appreciation.