So Im misplaced on what to do. This yr my purpose was to repay at the very least half my debt. However with my husband and Is tax return we now have $5000 in our financial savings. We had been solely simply at $500 earlier than. The factor is, I’ve been having a tough time deciding what to do about my debt. I’ve $3,400 in bank card debt. 1 of the three playing cards is in collections no curiosity. Sitting at $410, for the stability. I’ve an outdated automotive insurance coverage invoice sitting at $350 ish in collections as properly. However the large kicker is my $18,200+ auto mortgage. I loaned a used truck in 2022, my rate of interest is 13.04%, I’m 3 months behind the late stability being $3011.60. My minimal month-to-month cost is $530, if I had been present.
The factor is, we need to buy a house within the subsequent couple of years. Each of our credit score scores are horrible. Mine being 540 his across the similar factor. And our financial savings properly, earlier than the tax return was solely $500 however that was simply began in Jan of this yr. We need to construct our credit score scores and our financial savings. I’m simply unsure if I ought to pay my debt off completely with this return? Or pay the $3000 and get present on my truck cost. However then we’re nonetheless caught with a $530 month-to-month cost, and we are able to’t refinance since our credit score scores are horrible. Our month-to-month earnings is $4800 ish. Give or take. We have now been horrible about budgeting and saving up to now which is the rationale we’re on this mess. This yr our purpose is to get on high of our funds, repay debt and save for a house. It’s additionally 3am I simply received out of labor and 100% stressing over all of this. Sorry if that is rushed and worded horribly.
Any recommendation is appreciated. I’m simply so fully misplaced and caught in resolution paralysis proper now. Thanks 😊
