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Personal Finances / Credit Cards and Consumer Debt
|Subject: intro & what to do with extra $$||Date: 8/21/2003 1:48 PM|
|Author: LTLisa||Number: 168323 of 308225|
I've been lurking on the board for a few weeks and am finally surfacing to say hello and ask for some input.
Here's my situation. I currently have $2800 in CC debt at 4.9% (balance transfer rate) and $7000 in a student/career training loan at ~8%. On the loan I'm 2 years into a 15 year term. I put 15% into my 401(k) (not matched) but due to a recent bout of short-term unemployment, have no savings or efund to speak of.
I am planning on selling some stock next week that will result in around $2000. Also I am expecting a reimbursement for unemployment benefits of around $2000.
My current plan is this:
Put the $2k from unemployment reimbursement directly into E-fund
Put $1000 from stock sale toward credit card
Put $1000 from stock sale toward student loan
Find a credit card with a low fixed balance transfer rate and transfer the rest of the student loan to the card. With a $100/month payment at 5% interest, I can pay off the loan in about 7 years instead of 13. I have been making payments of $100/month on the credit card.
What do you all think? Any other suggestions I haven't thought of? If I raise my credit limit on my current card (shouldn't be a problem) I can transfer the student loan to that card. I think the interest rate for balance transfers is 4.75% right now. Unfortunately my job situation is precarious so I want to make sure I have at least a bit of an efund available.
Thanks! looking forward to contributing rather than just lurking :)
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