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URL:  https://boards.fool.com/so-heres-my-current-situation-20k-debt-0-till-31297790.aspx

Subject:  Re: Need advice on paying off debt... Date:  6/22/2014  3:14 AM
Author:  aj485 Number:  308284 of 312696

So here's my current situation:
20K debt @0% till april 2015

Monthly out:
~2700

Monthly in:
~1100/week


$1100/week = $4767/month

Your net amount to put toward debt (assuming that the $2700/month you indicate is your 'monthly out' REALLY does cover ALL of your spending), should be just over $2000/month.

That means that if you really stick to your numbers, you can manage to pay off your debt and still pay little/no interest - depending on exactly when in April 2015 your 0% expires.

I have my company match down already at the max company contribution at this point. I have not invested in 2014 roth yet but i know i have till april next year to invest if needed.

If you fund your Roth, you will end up paying some interest - either as a BT fee, or paying interest on the current card after your promo rate expires. If you decide to fund the Roth, you really need to run the numbers to see if the BT fee would cost you more or less than the interest you will pay.

One simple way i can think of which is what i am doing now is just pay off the minimum requirement from the 0% while keeping existing charges at 0 and just "wait it out" till the 0% expires then pay it lump sum.

Well, that depends a lot on how good you are at actually saving money and not spending it. You need to take a hard look at your personality and habits and determine if you will be able to put the money away and actually not touch it.

I also thought about investing in Roth asap but that would delay me by a few months in paying things off.

Whether you invest in the Roth now or during the first part of next year, it will delay you paying the debt off in either case.

Should i stay current course and try to pay off the debt till next year then worry about investments/buying house etc? Because buying a house is also on my mind since I rather invest the 1200/month rent into mortgage....

Well, back on this thread in January http://boards.fool.com/need-help-with-retirement-investing-a... you also had $20k in debt. You don't appear to have paid any down. Did you do what you indicated you were going to do, and put money into the savings account? If so, how much do you have saved toward the debt? In other words - what is your debt net of your savings? If you don't have at least $8k - $10k saved toward the debt, there's something wrong with the expenses you say you have, the income you say you make, or the discipline that you have in putting away money. In that case, I would strongly suggest that you stop the 'savings account' idea, and put all but $1k - $2k of your savings toward the debt, and pay down every penny that you can toward the debt every paycheck.

If you do have $8k - $10k saved, then you are probably good to use some of that money to fund the Roth now, and continue down the path you are going.


AJ
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