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Personal Finances / Credit Cards and Consumer Debt
|Subject: Re: Debt vs emergency fund||Date: 10/24/2013 4:11 PM|
|Author: aj485||Number: 307400 of 309665|
My monthly expenses are easily 4k.
I would strongly suggest that you begin tracking expenses immediately, as in writing down everything you/DH spend money on. If you are making $90k and only have $4k/month in expenses, where is the other $3.5k/month going? I'm sure some of it goes to taxes, etc. but there is probably another $1k - $2k that you may be spending, but don't realize how much it is, especially since you say that your monthly expenses are 'easily' $4k. And, since you have accumulated $20k in credit card debt, your monthly spending may be even higher than $5k - $6k.
It's important to understand what your real monthly expenses are, because at $4k/month, the new income of $44k should just about be able to cover your expenses almost indefinitely, with maybe a little tightening/adjustment. If you have to start drawing $2k - $3k per month from your e-fund, then you are likely to run out of money pretty quickly.
I read that I should pay off the debt. But my question is...taking such
a large paycut and being the only bread winner, is it wise to cut my emergency fund in half?
I would second the suggestions on waiting until you have stabilized your work situation. On the other hand, I would suggest that you start looking for a job now, rather than waiting until after you've retired.
I realize I could also refinance and pull equity or not. Need a lawyer to answer this one...I wish to not become a joint tenant on the deed with my husband. It is a pre-marital asset and he has contributed nothing toward the place in the entire marriage. I am afraid that just the act of refinancing will make it a marital asset. I would rather keep the insanely high interest rate. the payment is still only 490.
Refinancing to pull cash out of your home to pay past/current living expenses is using your home as a credit card. Not a good idea, especially if you want to continue living there.
I will say - if your interest rate is insanely high, and you could get a low