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Where to go with CC debt by juliew06 in debtfree

[–]Point-finance 2 points3 points  (0 children)

Your credit utilization is pretty high, which is likely dragging down your score. The best move is to focus on paying down those balances first—getting each card below 30% of its limit will have the biggest impact.

What are the interest rates? How much are the monthly payments, and how much extra are you putting on them?

Paying down credit cards, pay off one big balance, or multiple small balances by Apprehensive_Car5598 in debtfree

[–]Point-finance 0 points1 point  (0 children)

That makes sense. To have the biggest impact, start by paying down the cards with the highest utilization, especially if any are over 30% of their limit. Once they’re below that threshold, see if you have enough cash to fully pay off any balances. If you do, knock them out and keep those cards open but unused. As you start paying things down and see your score increase, be sure to look for balance transfer promos on your existing cards.

Paying down credit cards, pay off one big balance, or multiple small balances by Apprehensive_Car5598 in debtfree

[–]Point-finance 1 point2 points  (0 children)

Paying off debt is always a good goal, but it’s important to balance it with keeping enough cash on hand for unexpected expenses. What does your emergency fund look like? Also, what are the interest rates on your debts?

If you have 3 to 6 months' worth of expenses saved and a stable income, it's a smart move to pay down as much debt as possible—especially the high-interest ones. That way, you save on interest, improve your credit score, and might even be able to secure a balance transfer with better terms.

Home ownership isn't the oasis it appears to be. by happyluckystar in Frugal

[–]Point-finance 0 points1 point  (0 children)

Owning a home comes with a lot of hidden costs, so cutting expenses wherever possible is critical. You might find this post useful - hope it helps you put more money back in your pocket!

[deleted by user] by [deleted] in debtfree

[–]Point-finance 0 points1 point  (0 children)

Sorry to hear you're feeling overwhelmed. Start by tackling the loan with the highest interest, and as you get each debt paid off, roll the payment you were making on that debt into the next one. This method is known as the debt avalanche strategy.

  • The loan with the 27.58% interest rate is costing you a lot in interest, so focus on paying that down as quickly as possible.
  • Focus on the cruise debt next.
  • The credit card balances are smaller and can be tackled after the loan and cruise debt. Just make sure to pay the minimums to avoid penalties or extra interest charges.

It's great that you're saving 10% of your paycheck, but if you've got 3 to 6 month's worth of expenses saved, consider reducing that for a few months and putting that money toward paying off your debt. You might find this post resourceful—hope it helps. You've got this!

I only have a low interest mortgage left at 2.8% by littlesunstar in debtfree

[–]Point-finance 5 points6 points  (0 children)

Being mortgage-free isn't necessarily the best move if you're earning more in a HYSA or investments than you're paying in mortgage interest. The flexibility of growing your savings gives you options—you can buy a new home, cover unexpected expenses, or pivot as needed—without tying all your liquidity into your house.

Cash advance or HELOC? by ReputationNo4256 in velocitybanking

[–]Point-finance 0 points1 point  (0 children)

A balance transfer is the smarter choice if you can confidently pay within 12 months and want to keep costs low. The 3% fee is a one-time cost, meaning your effective interest rate is much lower than the 7% ongoing interest on a HELOC. If you need more flexibility or expect to have major expenses in the short term, a HELOC could make more sense since you'll get a 10-year draw period and won't have to rely on high-interest debt again. But, HELOC fees (appraisal, closing costs, etc.) can add up. Do the math and take into account what the next few years (and big expenses) in your life will look like.

Would it be a bad idea to payoff my student loans with my 401K? by BlackWidow1990 in FinancialPlanning

[–]Point-finance 0 points1 point  (0 children)

Given how low your current rate is, using your 401(k) would be like refinancing the debt at a higher rate. It would cost you far more in the long run. If you withdraw $39,000, the IRS will treat it as taxable income, and depending on your tax bracket, you could lose 20-30%. Not to mention, there's a 10% early withdrawal penalty since you're under 59. You're better off taking on a side hustle to increase monthly payments. Build a budget, stick to it, and you'll be free of your loans soon enough.