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Debt Reduction or House Completion?
Posted on 4/29/11 at 2:06 pm
Posted on 4/29/11 at 2:06 pm
OK Money guys and gals, this is my first time posting over here, and being a lurker over here, it seems as though you are pretty savvy. Here is my issue:
While my wife was in school, she accumulated a good bit of debt (˜$75k), with around 2/3 of it being CC debt. She is still in school, but now has a scholarship, and we both have decent jobs. I have a little CC debt myself. Before my wife and I married, I tried to add 800 sq. ft. to my house, and it didn't get finished (long story). Should I focus my extra money on getting the addition finished (currently I have enough room to live somewhat comfortably), or focus on the CC debt, and finish the addition after CC debt if paid off?
I think I should go with the CC debt first, but the wife seems to think we should make minimum payments on the CCs and either finish the house myself (much cheaper) or save for a contractor to finish.
TIA
While my wife was in school, she accumulated a good bit of debt (˜$75k), with around 2/3 of it being CC debt. She is still in school, but now has a scholarship, and we both have decent jobs. I have a little CC debt myself. Before my wife and I married, I tried to add 800 sq. ft. to my house, and it didn't get finished (long story). Should I focus my extra money on getting the addition finished (currently I have enough room to live somewhat comfortably), or focus on the CC debt, and finish the addition after CC debt if paid off?
I think I should go with the CC debt first, but the wife seems to think we should make minimum payments on the CCs and either finish the house myself (much cheaper) or save for a contractor to finish.
TIA
2
Posted on 4/29/11 at 2:11 pm to Geecubed
quote:
a good bit of debt (˜$75k), with around 2/3 of it being CC debt
Am I reading this correctly as you two have $50k in credit card debt? If so, it's a no-brainer to knock that down ASAP.
Posted on 4/29/11 at 2:15 pm to Korkstand
Yeah, that is what I was thinking, because the house is livable right now, and the outside is sealed.
Posted on 4/29/11 at 2:19 pm to Geecubed
If you only plan to pay the minimum on your credit card you will die before your out of debt. Seriously. It's meant to be a trap, and it looks as though you have fallen in. Put EVERY extra dime towards paying that shite off. ASAP
Just curious, as a college student how the hell did she get credit lines up to 50k? That pretty insane.
eta: Download this to help give you an idea of what your dealing with. Lots of people go with the "snowball" approach, which is lowest balance, but the "avalanche" is the logical choice; highest interest first.
Just curious, as a college student how the hell did she get credit lines up to 50k? That pretty insane.
eta: Download this to help give you an idea of what your dealing with. Lots of people go with the "snowball" approach, which is lowest balance, but the "avalanche" is the logical choice; highest interest first.
This post was edited on 4/29/11 at 2:23 pm
Posted on 4/29/11 at 2:21 pm to TigerDeBaiter
I know...Luckily, she doesn't need any more loans for school, as she will finish her Ph.D. next May, and she currently gets a scholly.
ETA - Thank you for that calculator...I can't view it at work, but I will definitely look at it when I get home. I had tried the snowball approach, and I got a card paid off, but it didn't seem as though I was making much of a dent in it. I figured that I was going to go the avalanche route. Thanks again.
ETA - Thank you for that calculator...I can't view it at work, but I will definitely look at it when I get home. I had tried the snowball approach, and I got a card paid off, but it didn't seem as though I was making much of a dent in it. I figured that I was going to go the avalanche route. Thanks again.
This post was edited on 4/29/11 at 3:21 pm
Posted on 5/1/11 at 11:49 am to Geecubed
I would take out a HELOC to pay off the CC debt if you have any available equity.
What rates are you getting charged on the CC's?
What rates are you getting charged on the CC's?
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