Deployed and in Debt

[Sharkbait21]

Hello all,

I'm 23 in the Navy currently been deployed now for 4 months and have 4 months left to go. During this 4 month deployment I've payed off $12,214 of debt, but I still have $8,000 on my wife's car and $6,000 on a loan left over. My wife moved back home with her mother for this deployment so we could save a lot more money. The question is should I still dump as much money as possible towards my debt or should I start putting my money in a savings account for when I return to rent a new apartment while making above minimum payments towards the debt still? ANY advice to help will be greatly appreciated, Thank you!

[Petunia 100]

I think a young couple such as you and your wife should definitely have enough cash on hand you can go out and rent a place if the need arises. Set a savings goal, divide by 4, and set that amount aside each month for the next 4 months.

Thank you for your service.

[corawhite07]

Much better if you will put your money in your savings account. I think that would be a good idea.

[cardtrick]

Save up enough for when you get back, use the rest to pay off the debt starting with the loan with the highest interest rate.

[snafu]

Shark, congratulations on getting $ 12,214. of debt clear off the deck. What is DW doing to pay off her $8,000. car loan? I thought Petunia nailed it. Figure out how much you will need for an apartment, damage deposit, 1st & last month's rent and utility deposits if required, divide by number of pay cycles [4?] and set that sum aside to accumulate. It would help if DW worked on the goal with you. I suggest she concentrate on getting $ 1,000. emergency fund in place because life happens and this go wrong.

Did you know the rule of thumb is rent must not take more than 28% of your income. You may need to modify plans with a smaller apartment or older apartment or less than ideal to keep that cost down. I feel confident you can get out from under debt with a few, short term adjustments to lifestyle. I hope you'll keep telling your story so we can cheer your every step forward.

[corn18]

Can you live in base housing when you return?

[Michael Thompson]

I think, you should set up an account and save your money but don't ignore the debt. Good luck

[corawhite07]

I think, you should set up an account and save your money but don't ignore the debt. Good luck

Yes, you have point. Sounds greet. Goodluck dude!

[RLM008]

Congrats on paying off the 12+k in debt you had.

I believe in the saying "a penny saved is a penny earn." That being said you should throw as much money as possible at the the debt (in addition to the minimum payments your currently paying) while continuing to save for the future.

The reason is simple:

The faster you pay off the debt the more money you end up saving that would have otherwise gone toward the interest of the debt.

The money you save from less interest can then be applied to an account such as an Roth IRA.

Remember, NO DEBT is always the best debt that you can have.

[Michael Thompson]

Yes, you have point. Sounds greet. Goodluck dude!

Thanks