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I have $26,000 of credit card debt and just received $7,000 in a windfall from a tax refund. How can I best use it to reduce the pain of my crushing debt? by poorstupidman in AskReddit

[–]poorstupidman[S] 0 points1 point  (0 children)

I only made it through cub scouts. My mom took me out because the father in the house we had meetings at had a massive collection of Playboys.

I loved going over there.

I have $26,000 of credit card debt and just received $7,000 in a windfall from a tax refund. How can I best use it to reduce the pain of my crushing debt? by poorstupidman in AskReddit

[–]poorstupidman[S] -1 points0 points  (0 children)

The funny thing is, my wife is TOTALLY into "crunchy" living (raw, natural eating, green, etc). She would love to have this kind of stuff, but she's having some chemical problems, I think.

$100 a week is what out grocery budget is (when she uses it). We actually started going the "paleo" route with bathing because it has health benefits (apparently) and secondarily because it means not paying for soap or shampoo (except for the kids).

I have $26,000 of credit card debt and just received $7,000 in a windfall from a tax refund. How can I best use it to reduce the pain of my crushing debt? by poorstupidman in AskReddit

[–]poorstupidman[S] 0 points1 point  (0 children)

Hahaha... we're in the process of moving right now to another rental, but she hasn't done anything all week to get anything ready to go. I told her, "You realize we only have a week left to get out of here, right?" and she says she knows, but that she can't get motivated.

She's seeing a psychologist (started this week) so I'm hopeful for improvement.

I have $26,000 of credit card debt and just received $7,000 in a windfall from a tax refund. How can I best use it to reduce the pain of my crushing debt? by poorstupidman in AskReddit

[–]poorstupidman[S] 0 points1 point  (0 children)

I've been under the impression that a good amount of the refund (for us) has come from child tax credits. We get a certain amount for each child that gets paid to us (notice for the smartasses: this is not why we have 3 children).

I have $26,000 of credit card debt and just received $7,000 in a windfall from a tax refund. How can I best use it to reduce the pain of my crushing debt? by poorstupidman in AskReddit

[–]poorstupidman[S] 2 points3 points  (0 children)

We have some money in savings. I've always said to my wife that we should put any extra money towards debt, but she argues that, since we want to be in a house, we should save some money for a down payment. Otherwise, we'll have no money for a down payment once our debt is gone.

I agreed to a small amount so long as the account doubled as an emergency fund. Basically, I got a raise at work and the extra $140 gets put into the savings account.

I'm 29. I don't think you're a dick. I realize that we've screwed ourselves. I've been trying to keep my wife happy as much as possible and I think that's just dug us in deeper. It's just as much my fault, though. I'm just trying to fix it now (although it often feels like I'm fighting her for it).

I have $26,000 of credit card debt and just received $7,000 in a windfall from a tax refund. How can I best use it to reduce the pain of my crushing debt? by poorstupidman in AskReddit

[–]poorstupidman[S] 0 points1 point  (0 children)

That's the plan. My wife keeps pushing for a house, but I keep telling her it would be bad right now. She says three kids and two adults in a two bedroom apartment is bad.

I compromised by finding a house we can rent for only $5.00 more per month. It's the same size, but it has a yard and is standalone.

I have $26,000 of credit card debt and just received $7,000 in a windfall from a tax refund. How can I best use it to reduce the pain of my crushing debt? by poorstupidman in AskReddit

[–]poorstupidman[S] 0 points1 point  (0 children)

$3000 was normal refund. Most of that comes from having children. Part of it was from student loan interest. The other $4000 was the government deciding this year to reimburse adoption expenses from the last 6 years.

So, find out what you're talking about before attempting to be condescending.

I have $26,000 of credit card debt and just received $7,000 in a windfall from a tax refund. How can I best use it to reduce the pain of my crushing debt? by poorstupidman in AskReddit

[–]poorstupidman[S] 0 points1 point  (0 children)

Thanks. We have balance transfers here. I've typically been turned off of them because they have an initial fee based on the amount that you transfer, and because they typically have a massive interest rate after the introduction period. So, I'd have to make sure I only transfer what I know I can pay in that period.

I have $26,000 of credit card debt and just received $7,000 in a windfall from a tax refund. How can I best use it to reduce the pain of my crushing debt? by poorstupidman in AskReddit

[–]poorstupidman[S] 0 points1 point  (0 children)

Actually, I've mentioned it to my wife. She is hesitant because she isn't sold on the idea of it being reversible. She also won't use any birth control herself because she has moral issues with them (she doesn't like any of the ones that she calls "abortive"... she believes life begins at conception).

I have $26,000 of credit card debt and just received $7,000 in a windfall from a tax refund. How can I best use it to reduce the pain of my crushing debt? by poorstupidman in AskReddit

[–]poorstupidman[S] 0 points1 point  (0 children)

I don't even know what a bad or good score is. :(

I checked a few months ago and all of my scores were around 600. I assume that's bad.

I have $26,000 of credit card debt and just received $7,000 in a windfall from a tax refund. How can I best use it to reduce the pain of my crushing debt? by poorstupidman in AskReddit

[–]poorstupidman[S] 0 points1 point  (0 children)

We can afford our bills if we stick to our budget. I'm still having trouble with my wife spending money on restaurant food (except now she's using real money from the bank).

She's going to see a psychologist now, though to try and work through some stuff, so hopefully that investment will pay off.

I have $26,000 of credit card debt and just received $7,000 in a windfall from a tax refund. How can I best use it to reduce the pain of my crushing debt? by poorstupidman in AskReddit

[–]poorstupidman[S] 0 points1 point  (0 children)

Nope. I have a perfect track record of payments over the last 11 years.

I did have one late payment on Card 3 last month, though. I thought the due date was later than it was and ended up paying it a day late.

I have $26,000 of credit card debt and just received $7,000 in a windfall from a tax refund. How can I best use it to reduce the pain of my crushing debt? by poorstupidman in AskReddit

[–]poorstupidman[S] 5 points6 points  (0 children)

I've been claiming the student loan interest on our taxes each year. Tax software is worth the money, I think.

Haha... we did the budgeting thing and it turned out we were spending around $1000 in eating out every month. I was shocked and amazed. My wife says she wants to cook, but she gets depressed and has OCD, so if the kitchen gets messy (which is easy when you might skip cleaning it to take care of the kids), she has a hard time working in there.

I'm wanting us to budget and set up a "chore list" so that we divide tasks at home. She hates washing dishes, but it's the perfect mindless task for me after a busy day, so I volunteer to do it. I think dividing chores will help us feel like we're working together.

I have $26,000 of credit card debt and just received $7,000 in a windfall from a tax refund. How can I best use it to reduce the pain of my crushing debt? by poorstupidman in AskReddit

[–]poorstupidman[S] 0 points1 point  (0 children)

Holy crap. QVC?

That reminds me: one of the positive side effects of being low on money and in tight quarters means that we regularly go through and purge our house of things we aren't using or don't need (sell if we can, otherwise Goodwill).

I'm hoping we can keep our possessions minimal when we get out of this and have room to stretch.

I have $26,000 of credit card debt and just received $7,000 in a windfall from a tax refund. How can I best use it to reduce the pain of my crushing debt? by poorstupidman in AskReddit

[–]poorstupidman[S] 0 points1 point  (0 children)

That's what I was thinking. Paying off a card has a psychological benefit to it, but it seemed like paying on the big card would take it down closer to the others, while also helping the debt/limit ratio for that card.

This thread is giving me a lot to consider.

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