Out debt totals $36,000. We have 2 credit cards at 0% interest with a total balance of $5,000 a car at 0% interest with a balance of $11,000, student loans at 1% interest with a balance of $13,000, and a second car with 4.25% interest with a $7000 balance. We are planning to sell this second car and be free of this payment.
Our income varies month to month but it is generally around $5500-$6000 take home. We have no savings other than $6200 in stocks which serves as an emergency or retirement fund. We have no 401ks or IRAs.
Right now we are putting all our money towards paying down our credit card debt (we have already paid off $7000 and have less than $5000 more to go!) And after we sell the car at 4.25%, we are left with 2 high balances with very low interest rates (0% and 1%). I am not sure what to do after the credit cards are paid off though.
Our priorities are to open and fully fund retirement accounts (We are 32 and 35 and we have no retirement savings. As a business owner I can put away as much as 20% of my income into a SEP-IRA), save a 6 month emergency fund, and save $50k as a downpayment for a house. We are just not sure which is the most important to begin first and when. Should we begin a retirement account after the credit cards are paid off? After the car is paid off? After all debt is paid off? Or (dave ramsey style) after all debts are paid off and we and have a 6 mo. emergency fund, etc.?
While I realize it is important to be debt free, the monthly car payment totals $350 and the student loan totals $135, so I am not incredibly concerned about these payments in the grand scheme of things. If it would make more sense to sock away 20% each year into retirement or to save for a downpayment, I would rather do that. Input greatly appreciated!!!
Our income varies month to month but it is generally around $5500-$6000 take home. We have no savings other than $6200 in stocks which serves as an emergency or retirement fund. We have no 401ks or IRAs.
Right now we are putting all our money towards paying down our credit card debt (we have already paid off $7000 and have less than $5000 more to go!) And after we sell the car at 4.25%, we are left with 2 high balances with very low interest rates (0% and 1%). I am not sure what to do after the credit cards are paid off though.
Our priorities are to open and fully fund retirement accounts (We are 32 and 35 and we have no retirement savings. As a business owner I can put away as much as 20% of my income into a SEP-IRA), save a 6 month emergency fund, and save $50k as a downpayment for a house. We are just not sure which is the most important to begin first and when. Should we begin a retirement account after the credit cards are paid off? After the car is paid off? After all debt is paid off? Or (dave ramsey style) after all debts are paid off and we and have a 6 mo. emergency fund, etc.?
While I realize it is important to be debt free, the monthly car payment totals $350 and the student loan totals $135, so I am not incredibly concerned about these payments in the grand scheme of things. If it would make more sense to sock away 20% each year into retirement or to save for a downpayment, I would rather do that. Input greatly appreciated!!!
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