I am in my early 40's and have about $300K invested and some in cash. I have $70K in credit card debt (no lavish lifestyle, just 2 bouts of unemployment and some major medical expenses, even after insurance).

I live below my means, LCOL city, used car, max my 401K, save my bonuses, etc.

I am going to get a large bonus where after tax, I'll get a couple hundred thousand.

Should I prioritize pay off all credit cards or pay down half/some of the cards and use the rest for a house down payment?

like
Posting as :
works at
You are currently posting as works at

Isn’t this just a rates question?

Do you expect to earn more investing the amount or paying down cc debt?

I have to imagine eliminating credit card debt is the answer

likesmart

100% agree ^. Anything above 5% would probably be my threshold.

like

Absolutely pay off the CC debt. I assume those rates are high and even if not 70k of unsecured debt is terrible and puts u at risk if any other job gaps or unexpected expenses, will impact your credit score and rates u get for a mortgage, etc. then make sure you have 6 mo of living expenses I n emergency fund so u don’t get in that situation again. Based on your age and those numbers, I would probably not be looking to put a big number in a house down payment right now. Especially in an expensive market. I would be thankful of the chance to get in a better debt/savings ratio and then start over in terms of building up for that down payment.

like

That level of CC debt makes your life more expensive in other areas. Get that done first. Prioritize it to the extent of: stop contributing more than max to your 401k. Crippling yourself now with CC debt will remove any ability to live well in the future. Unless, I suppose, you never plan to pay off that debt?

like

CC debt is awful and as another commenter said, has a big impact on your credit. Pay those off immediately. Then if you have the cash for a house down payment, wait a few weeks to a month for those payoffs to hit your credit report before applying for a mortgage.

like

What interest rate are your cards at?

Debt first - those are high interests.

Update: paid off my cc debt, waited a month and my credit score refreshed and it is now excellent. Feels so good to be debt free!

I have since bought a house (no bidding war or above ask pricing bs), put 20% down. House is an area that is a little off the radar. I was able to lock in 3.5% just before the rate hike.

Thanks to all for the advice!

Related Posts

Random question: does everyone have 5000 pounds of saving? 😂

like

What is the annual hike percentage of csg, any bonus also what is notice period of CSG?

like

Is there any way I could find better listings around my area? I've been checking out the competition and their properties seem to be better overall, more modern and more appropriate to what people are looking for nowadays. Any clue as to how they get these listings?

like

I have a disability as listed on job apps. It's minor and completely controlled by medication.

Is disclosing it on the application helpful or a hindrance to getting the job?

like

Just got made redundant today, it comes by surprise I didn’t really see it coming. Now I’m lost. And I’m on Singapore with working visa until christmas. I can’t go back yet. I am depressed.

I am not sure which company to join. Coforge or BORN Group (Acquired by Tech Mahindra). Both are offering similar CTC. Born has 1 Lakh as yearly bonus and 1 lakh if you get the cerficate in one year. On the other hand Coforge has mixed reviews.

like

Thinking of selling off all my crypto. Before I do, anything I need to know (tax implications, why not to, etc)?

like

Best performance car options under 60k? Nothing to old or high mileage as it will be a daily driver

like

Hi,

I am on Notice period expecting some offers in SDET profile.

What should be the expected CTC (Base + Variable/Performance Bonus) based on 6.5 years of experience ?

tech stack - java , rest assured, selenium, jenkins, testng, maven

like

Can anyone let me know if mental health teletherapy companies pay out a Christmas bonus for their providers?? I am truly curious although I suspect they don’t.

like

Thoughts on a HYSA vs Vanguard Money Market Fund. Most HYSA are at ~1% and Vanguard MMF is at 1.3%. Should I park my money in a MMF long term, even when banks raise their interest rates?

like

I will be interviewing with ClearView Healthcare Partners for an experienced role at the London office. Wondering if anyone have insights of what the interview could look like? I know they will be a case and fit questions. Wondering if it will be any different to graduate entry interviews? If they will me technical questions? TIA!

likehelpful

What would be the take home salary for the below structure

Components of Total Cost to Company

Rs. (Per Annum)

Basic (@40% of Total Fixed Pay)

                   771,240.00

HRA (@70% of Basic Pay)

                   539,868.00

Bonus/Statutory Bonus

                      48,000.00

Employer's contribution to Provident Fund (@12% of Basic Pay)

                      92,549.00

Flexible Components of TFP ^

                   476,444.00

Total Fixed Pay (Per Annum)

                1,928,10

like

Thoughts on leaving a data science position in a big insurance company (after 4 years) to work as a contractor in Jacobson Group? Brother is considering making this move bc he is interested in new opportunities but also mindful that the economic climate isn’t exactly stable. Any/all opinions welcome!

like

Deloitte Fish: Is £90k too much to expect for a Consulting Manager role in London? Also does the firm provide a car allowance and a benefits allowance? If so, can you take those benefits as cash?

like

Is JP Morgan Chase still giving laptop rembursement to new hires ?

like

When US visa process for 2021-2022 is going to commence?

like

Any accurate figures on Principal salary in UAE fixed+bonus? Are Principals engaged in commercial activities/platform building or just senior PMs with higher pay? Also how is first year partner compensation structured?

More Posts

Level 11, CCTC 5.3lpa, YOE 2
Is it good pay for Level 11??

like

If you put in your two weeks notice, what would you consider in making a decision if your current company countered?

like

Thinking about switching hospitals in the next year or 2 but I am nervous I will be payed less/have less bonuses. How do I figure out if it’s worth leaving my current hospital?

like

Hey all,
I am looking for some guidance. I am currently an RN and just feel like the healthcare system is falling apart. I currently work in home health and am thinking about what my next job choice should be, whether in nursing or something outside of healthcare. I’m feeling so unfulfilled in work and just burnt out. It could be I just need to step away from direct patient care and do something more behind the scenes. Anyone else having these thoughts or have any guidance? I appreciate the help

likesmart

Thing you are most looking forward to this new year? For both personal and work.

like

Is there a job guarantee in MS and do they give a joining bonus?

What are the Barclays AVP salaries for TTRO in UK?Barclays

like

Hi everyone, I’m in asset management at a real estate firm with 2 years of experience in my current role and 5 total years of experience in finance. What should my comp range be?

like

For those of you whose firms don’t have free market work allocation, what kind of system do you have in place (particularly for more junior attorneys)? Does it work?

like

Anyone have recommendations on firms that specialize in intellectual property and hire recent graduates? (Living in NYC but not limiting myself geographically)

like

Given that tech sales reps can be some of the highest paid professionals, but with “lumpy” income, curious how people are investing? Feel like not enough of my peers are doing alternatives like real estate.

like

Most likely getting fired, tips on how to find a job ASAP? I made a pretty big mistake that required supplemental filings with government offices to fix (missed some items when reviewing/comparing long lists of things across 20-30 years). It’s fixable and the client isn’t really getting hurt by this (worst case signing gets delayed), but my anxiety is telling me to prepare for the worst. Can I ask for extra time at the firm to find a new job (so I wasn’t “fired”)? Or should I go for severance?

like

I got a job offer with higher pay but the brand isn't as good as my current employer. Can I use this offer to renegotiate my salary with my current employer? Has anyone here done something similar before? How did it work out?

like

Hi fishes,

My joining date mentioned in IBM Offer letter which I received just a while ago is second week of November, 2021. However, I have 90 days notice period. It also says to accept within 3 days and a clause is written that joining date can be revised only till 5 days. Will ibm revise my joining date ? I am very anxious it's too late so I cant even call recruiter.

Please suggest.

I have an offer from Accenture (Tech: Salesforce, Level 9) and it has 27% variable component.
How much variable pay can I expect? How much variable they pay on an average?Accenture Accenture India

like

A colleague and I have been getting a lot of nudges about ACD positions, so I’m doing my homework here. What should my salary expectations be, and what % of my time should I expect to spend on coaching/mentoring?

like

For creatives who became/ in the process of becoming film/ commercial directors, what was your journey like?

like

When do I (you)sell? I’ve generally been a long term investor, and never really sell unless I hear some really bad news or I just don’t like the stock anymore. Have some nice gains this year.. but don’t know if I should just take the profits and find something else or let it ride

like

Let’s do this today…just for fun

List of credit cards I have and their limits
Hsbc platinum: 1.80L
Hdfc Millenia: 4.80L
SBI lifestyle:2.25L
SBI FBb style up: 75,000
RBL paisabazaar duet: 1.87L
ICIC rubyix Visa card: 12.20L

You guys can share the same if you would like to

like

Im going to join FIS Global on 25th as a Java dev. I have 3.9 years total exp, current company is TCS. what it will be like to join Fis and any risks? Could anyone give a brief about the culture and what it will be like in the first 1 year?. What I can find difficult as coming from a service based company?

like

Additional Posts in FIRE Financial Independence Retire Early

I have a chunk of money I'm trying to invest in index funds (around 20k). Should I wait for the market to dip a little before I purchase or does it not matter given its a > 15 year time horizon investment?

like

How do you fire your financial advisor? We've used him for two years and the cost doesn't justify the work he does. We tried to fire him last year, but we weren't successful.

likefunny

How do I get into credit repair business?

like

How much money do you guys give for weddings?

like

Need some advice here, if it's from a tax professional or accountant even better.

My wife was doing a backdoor Roth IRA, she transfered money to her Traditional IRA and instead of transferring the money to her Roth IRA, she accidentally invested the money in her Traditional IRA.

How can she fix this? Can she sell the stocks and then transfer the cash to her Roth? Would there be any tax implications? Any special form that we need to fill out?

Thanks in advance!

like

Anybody here buy a rowhouse with a basement rental, live in the basement and rent out the upper floor? I only see the reverse in DC.

like

Looking for suggestion best ETF to buy right now including crypto & EV

like

What is your age and how much do you have saved across accounts? How much do you think you will need for retirement and at what age do you plant to retire?

like

Anyone have any luck buying refurbished or certified pre-owned cell phones? I’m in the market and looking to spend no more than $300. What do you reckon I could get for that (I’m an android guy), and where would you go to buy?

like

Help! I need to invest in a passive income but don’t know where to start. Any suggestions? 🙏

like

Unpopular opinion: the FIRE community is contributing to an unhealthy workaholic culture as we forestall healthy work-life balance in favor of reaching our “FIRE” numbers a few years earlier. As a result, work culture is becoming all the more intolerable as the bold few would-be advocates for work-life balance are sucked headfirst into the rat race, and no one is left to fix things from the inside.

Society overall would be better served by a more community-minded approach to work-life balance.

likefunnysmarthelpful

Digital nomads? I have enough for coastfire and was thinking of bouncing around and teaching English online to stay afloat. Opinions?

likehelpful

What should I invest my Roth 401k in? I’m a recent college grad and currently have 100% in a target date (2060) fund. Should I be dividing my contributions among anything besides the target date fund?

like

Engaged, and beginning to do joint retirement planning. I’move got IRAs, 401ks, the usual. My fiancé says she’s never opened an IRA because her parents started a program for her under New York life. Went to the website and it seems like it’s completely different - some annuities, some life insurance that you can withdraw early (?). Anyone ever go this route or have insight into it?

like

What’s a good budget for a king size mattress? $160k salary if relevant.

funnylike

Thoughts on whole life insurance? Worth it?

like