I just recieved 33k. i first put 10k into savings. i had nothing. i then paid off a motorcyole loan of 7500.00 with 18% intrest rate..
Credit card 1 2200.00 with limit of 2300 paid off. credit card 2. 1200.00 with 2000.00 limit. paid off.
12k remains. i have another motorcycle loan 6000.0 balance 8% int. $120.00 mth. and 2 Fidelity 401k loans. which i still contribute to, payroll deduct biweekly.
What should I pay off first?
I'm 54yo. 4.5 years out of a BK 7. current credit score 675. i pay off the cards each month and mostly use for daily expenses. they are cash back cards. trying to rebuild the credit so
I can purchase a property in the near future in AZ. for about 120k that i could rent out in season and use myself until I retire and and leave Chicago. Thank you for your input. CHarlie
I am wondering how you came into all of the debt, and if once all this is done you are making ends meet.? Can you really afford this motorcycle without going into debt again? If you will be forced into debt again in order to pay for your monthly bills, I would say sell the bike and use the proceeds to pay off all the debt.
If you are now living within your means (run the budget numbers!), I might suggest that you pay off the 401k loans. Use the increased cash flow to further beef up your cash reserves, so you won't need to go there (401k) again.
Hello Charlie, Based on what you described, I would suggest you pay down your other motorcycle loan then work towards the 401k loans. Once you are debt free I would highly recommend you try to stay that way. And you will probably not want to hear this but considering you have two motorcycle loans, I think it's safe to assume you also have a couple motorcycles. If that's the case you should consider selling them to pay off your 401k loans. Just my thoughts, but I would prefer to not deal with the stress and other financial issues associated with debt rather then owning a motorcycle.