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Started By
Message
Severance situation,thoughts?
Posted on 4/13/23 at 11:05 pm
Posted on 4/13/23 at 11:05 pm
May be real, may be hypothetical...
Get paid a big package bigger than most years income...job has been commish and next one will be too
Do you
A. Pay off all cars. Credit cards, debt in general
B. Pay off half.
C. Stay cash heavy until new job same biz is good?
Get paid a big package bigger than most years income...job has been commish and next one will be too
Do you
A. Pay off all cars. Credit cards, debt in general
B. Pay off half.
C. Stay cash heavy until new job same biz is good?
18
Posted on 4/13/23 at 11:06 pm to hubreb
What's your age?
Over 40, A
Over 40, A
Posted on 4/13/23 at 11:09 pm to lsusteve1
Upper 40s, one kid freshman college out of state..expensive = debt..one kid 6 months from off pay roll
Posted on 4/13/23 at 11:17 pm to hubreb
Definitely CCs first. Then high interest debt.
Prob keep a little bit in reserve for new job to build to steady income as before.
Prob keep a little bit in reserve for new job to build to steady income as before.
Posted on 4/13/23 at 11:18 pm to hubreb
If you have roughly a year in your rainy day fund I would use most if not all of it to reduce debt. If you are really disciplined maybe only the debt at a higher rate than you can reasonably expect to get by investing the remainder AFTER taxes.
If you don't have a full year in liquid assets for a rainy day I would just pay off the credit cards since they can be used to cover expenses if the job search runs long. Then when you have another job you can pay off debt again unless they are lower than you can expect post tax as a return on the money if you didn't pay off the debt early.
If you don't have a full year in liquid assets for a rainy day I would just pay off the credit cards since they can be used to cover expenses if the job search runs long. Then when you have another job you can pay off debt again unless they are lower than you can expect post tax as a return on the money if you didn't pay off the debt early.
Posted on 4/13/23 at 11:18 pm to hubreb
I’ve done A before. These days I’d prob go with B.
Posted on 4/13/23 at 11:19 pm to hubreb
It depends on your interest rates. If they are low, isn’t it better to invest the money you have into something safe while you pay off the loan?
Posted on 4/13/23 at 11:19 pm to hubreb
You buy a boat.
Or a side by side.
Also, do like the boomers. Make your kids rack up debt and live carefree.
Or a side by side.
Also, do like the boomers. Make your kids rack up debt and live carefree.
Posted on 4/13/23 at 11:21 pm to momentoftruth87
I've done A before too, and market sucked for a year and I had no money and ran up debt big time...more stress
Posted on 4/13/23 at 11:22 pm to hubreb
Yep. Clear a few things and keep cash on hand.
Posted on 4/13/23 at 11:34 pm to hubreb
Hard to say without more specifics. Like interest rates on the debts, debt balances, how much cash on hand already, monthly expenses, etc
But in general, pay off the credit cards and other debts with highest interest rates while making sure you still keep cash for about 4-6 months worth of living expenses.
But in general, pay off the credit cards and other debts with highest interest rates while making sure you still keep cash for about 4-6 months worth of living expenses.
Posted on 4/13/23 at 11:45 pm to hubreb
Why the hell are you carrying credit card debt in the first place?
Posted on 4/14/23 at 5:52 am to hubreb
A if you have a cushion to cover expenses.
Revolving debt is a higher rate than you would get from stocks or bonds over the next year. (Unless we enter a bubble in which case you have to try to time the market.)
A vehicle is a depreciating asset so you want to minimize the interest. Unlike a house you have zero chance of getting that back long term, and you can't write it off like a mortgage. It's just money down a rathole.
Revolving debt is a higher rate than you would get from stocks or bonds over the next year. (Unless we enter a bubble in which case you have to try to time the market.)
A vehicle is a depreciating asset so you want to minimize the interest. Unlike a house you have zero chance of getting that back long term, and you can't write it off like a mortgage. It's just money down a rathole.
This post was edited on 4/14/23 at 5:53 am
Posted on 4/14/23 at 5:57 am to hubreb
quote:
Pay off all cars. Credit cards, debt in general
1 pay off debt
2 stop collecting debt
Posted on 4/14/23 at 7:37 am to hubreb
Pay off high interest debt, keep low interest debt the same and stay cash heavy for now.
Depends on how long until new income starts flowing again.
Depends on how long until new income starts flowing again.
Posted on 4/14/23 at 7:48 am to hubreb
Pay all the credit cards, you shouldn't carry CC debt anyway.
Cars depends on the interest rate, if the interest rate is less than a savings account today put the money in the bank and pay the note from that stash. Same with any other debt.
Cars depends on the interest rate, if the interest rate is less than a savings account today put the money in the bank and pay the note from that stash. Same with any other debt.
Posted on 4/14/23 at 7:52 am to hubreb
quote:
C. Stay cash heavy until new job same biz is good?
Payoff debt when you are employed again and pulling in money
Posted on 4/14/23 at 7:54 am to zippyputt
quote:
Pay off high interest debt, keep low interest debt the same and stay cash heavy for now.
Depends on how long until new income starts flowing again.
My thoughts exactly. Find the highest interest paying brokerage/savings/checking, or possibly short term CD, and park the cash there.
Posted on 4/14/23 at 8:04 am to SchiffReynolds
quote:
Why the hell are you carrying credit card debt in the first place?
When your sales job is 100% commission you don't get paid the same amount every month, qtr, etc...add in two kids in college and you will know
Posted on 4/14/23 at 8:09 am to hubreb
High interest debt, then hold onto the rest until your job situation evens out. Then pay off debt higher than 4%
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