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Subject:  Re: I'm a Newbie & I need advice on CC Debt Date:  10/17/2005  7:09 PM
Author:  royinstl Number:  212744 of 313093

Welcome Fool1One

I will go a head and put my $0.02 in. the 45K of Credit cards debt should be paid first and in this order of the highest interest rate.

Office Depot
CC Visa

S/L payment ? $1100/month assuming a 20 year payback at 9 %

I have to guess your minimum monthly payments are around $980-$1100. IMHO I would target trying to budget at least $1800 for CC debt repayment since it is entirely possible that CC minimum monthly payments could rise to 4% in the very near future and you should probably try to budget this minimum amount to be safe.

The House sale may quickly take care of all your CC debt but if anything happens you should do all you can to get rid of the 20% and above debt quickly

IMHO I would only contribute to your 401K up the full employer matching percent. I strongly believe in contributing to a ROTH with what you can. However, the 20% and above debt would scare the living crap out of me. For myself I would have to get rid them and then IRA.

You can get out of debt and retire but you are really going to have to get into control of all your cash flow so that you can come up with a budget that works and changes with your income. Your budget is what will get you out of debt and into retirement. Windfalls like your home sale will help bring down the totals but I would guess that someday you will want to own a home again and keeping your standard of living as low as you are comfortable with will get you there the quickest.

Roy (Congratulations on the new Job…)

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