Hi all. This is my first post in the forum. My girlfriend (who I plan on proposing to in the next couple/few months) has a good amount of debt. We're starting to work on finances since I'll be moving in with her in about 2 months or so. I knew she had debt, she's been upfront about all of this, and it was nice to sit down and see the numbers and do some math. I don't have much debt myself, about 11k for my car but it's only at 1.9% interest so I'm not too worried about that. I make about 34k and she makes 33k but I also work a ton of overtime so my pay tends to be upwards of 50k. Now that you have all that, here is her situation:
Credit Cards:
~5k with 29.99% APR!!!
~9.5k with 16%
2k with 14%
2k with no interest
Student Loans:
Total is 73k - interest is 6.8 or 3.2 (around that) depending on which loan.
Our monthly bills will be fairly low totaling around 1200 or so. Our take home after taxes but before my overtime willl be a little under 4k monthly. I also put 6% into our 401k and she's planning on doing the same.
So my question is (sorry for all this information) is how to go about paying off her debt? I have about 6k in savings with 1k as my emergency fund. The 5k can be paid off easily but I have some thoughts of having her transfer some of her balance (or all if possible) to a 0% APR card. We found a good one that has no fees and is 0% for 15 months. We can easily put the money aside into my MM account, earning some interest along the way, to pay it off when the introductory rate expires. My thought is by transferring (unless one of us loses our job the total transferred can easily be paid off in 15 months) allows us to put more money into her student loans for now instead of putting everything towards the CC's. What do you guys think?
Credit Cards:
~5k with 29.99% APR!!!
~9.5k with 16%
2k with 14%
2k with no interest
Student Loans:
Total is 73k - interest is 6.8 or 3.2 (around that) depending on which loan.
Our monthly bills will be fairly low totaling around 1200 or so. Our take home after taxes but before my overtime willl be a little under 4k monthly. I also put 6% into our 401k and she's planning on doing the same.
So my question is (sorry for all this information) is how to go about paying off her debt? I have about 6k in savings with 1k as my emergency fund. The 5k can be paid off easily but I have some thoughts of having her transfer some of her balance (or all if possible) to a 0% APR card. We found a good one that has no fees and is 0% for 15 months. We can easily put the money aside into my MM account, earning some interest along the way, to pay it off when the introductory rate expires. My thought is by transferring (unless one of us loses our job the total transferred can easily be paid off in 15 months) allows us to put more money into her student loans for now instead of putting everything towards the CC's. What do you guys think?
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