My Salary And Finances - Need To Decide What To Do

If you don't have enough money for debt payment every month, it's still a better idea to redirect the money to your debt payment than investing in 401K (credit cards interest rate is much higher than your returns from 401K including your employer match). Do the calculation and make a decision.

 

Not a good idea.

 

You can refinance your loan after one year.

If I were you, debt payment would be my number one priority. I'd compromise on other things like eating out, would go on a strict budget, save money, liquidate other investments (if needed) outside of 401K and pay that damn debt. Because, credit cards interest rates are much higher.

It would also a good lesson for my family to not to get into debt again. Ask me how I know..

 

What has your husband been investing in? The stock market has done very well for the past few years. Going forward, inisist he share all major financial decisions with you and keep a joint account so you can also monitor progress. I would keep contributing at least enough to your retirement account to get the company match.

 

Debt settlements affect your credit score as much as a bankruptcy would and it will stay in your credit history for 7 years.

IMO - wouldn't recommend it.

 

Do not take it out of your 401K – All financial advisers will unanimously agree

Do not lose matching from your company by stopping contribution to 401K.

Stop charging on your credit card until you pay off the balance

Paying off the credit card should be on the top of your priority list

As it is your mortgage payment is 3,450. Refinancing is creating not just another loan, it has fees and expenses to refinance. Besides, if you have taken the loan 1 year ago, rates are higher today than when you took the mortgage.

Call the credit card company and negotiate. Ask them for an extension and try to extend the loan for 0% interest rate for a few months. Talk to the credit card company to lower your interest rate

Bring back your 35K savings from India and use it to pay down the credit card. This will go a long way to reduce your debt.

Liquidate some investments and pay it off with out touching 401k.

Live on budget, get rid of that latte, eating out, vacation and buying anything other than basic necessities until the credit card is paid off. Fiscal discipline is a must. Every $ adds up over time. Whatever you save goes towards the credit card payment.

You may end up paying some interest rate on unpaid balance to the credit card, but refinancing cost does not justify refinancing at higher interest rate.