Should I PAY or should I not?

[tibers587]

Should I repay debt or wait?

In my final year of college I managed to rack up about $3400 in credit card debt. Now I’m considering paying it off. Here are the interest rates of the cards.

$800 discover= 0%
$2100 AMEX= 11%
$500 Visa= 15%

I have $1200 in cash, $5000 in investments. The investments are way down and these are my only assets. I’m worried that I might get swallowed up in debt if I don’t. However the investments are way down. My job is based on commission. My base salary is very low and it is barely paying for my expenses, which are minimal. Once my student loans kick in December, I’m screwed. I won’t be eligible for commission until the end of the quarter (October). It could be anywhere from nothing to thousands of dollars. Should I try not to spend on the cards and pay the minimum payments? Pay off some, or all, or just wait.

Any advice is appreciated.

[Seeker]

Should I repay debt or wait?

In my final year of college I managed to rack up about $3400 in credit card debt. Now I’m considering paying it off. Here are the interest rates of the cards.

$800 discover= 0%
$2100 AMEX= 11%
$500 Visa= 15%

I have $1200 in cash, $5000 in investments. The investments are way down and these are my only assets. I’m worried that I might get swallowed up in debt if I don’t. However the investments are way down. My job is based on commission. My base salary is very low and it is barely paying for my expenses, which are minimal. Once my student loans kick in December, I’m screwed. I won’t be eligible for commission until the end of the quarter (October). It could be anywhere from nothing to thousands of dollars. Should I try not to spend on the cards and pay the minimum payments? Pay off some, or all, or just wait.

Any advice is appreciated.

I'd suggest taking $500 from your cash savings and paying off in entirety that $500 Visa bill. At 15% interest, it's the most costly.

If the $5k is in "retirement" investments, then it's best not to touch it.

You really have not provided enough info. Income is variable, which is one problem. And if you have no idea how much to expect in commission, then it becomes very difficult to plan.

You also are not stating all your debt. How much do you owe in Student debt? What are your monthly payments going to be and what is the interest rate on this?

Do you have an Emergency Fund in place?

If you are barely making ends meet as it stands, you need to explore the possibility of "extra" work... either within your current workplace, or outside the current workplace, to supplement your income.

[disneysteve]

I agree with Seeker. Not enough info to answer the question. We need to see the whole budget, income and expenses, including the upcoming student loan info.

[tibers587]

Monthly expenses top out around $1300. Once my student loans hit in December that'll be around $1600. The total debt is around $40k.

My accounts are all investment. One Money Market and three mutual funds. This is my emergency fund.

I agree it is hard to plan when your income is variable. The only thing I've been able to scrounge on a terrible economny. Believe me I'm looking.

[disneysteve]

Monthly expenses top out around $1300. Once my student loans hit in December that'll be around $1600. The total debt is around $40k.

My accounts are all investment. One Money Market and three mutual funds. This is my emergency fund.

How much is your base salary?

A money market fund is fine for an EF. Stock mutual funds are not.

[tibers587]

$24 gross which I figure is around $1500-1600 net per month.