L
lj1958
Guest
We are seriously in debt (over $50,000) and having to borrow against 401k just to pay bills. Debt is mostly credit cards, with interest ranging from 7.9% to 29.99%. And all of husband's cards have recently had their limit pulled back (he used to have like $100,000 credit limit on two or three AmEx cards, plus others; now they're each at around the level of debt). Husband says he needs to pay back some into 401k for what he's pulled out - maybe $1000-$2000. Lots of things need done, such as new brakes and new tires on my car (190,000 miles). I refinanced my car loan a couple years back, big mistake, thought husband was getting a new job and tried to pay off other bills; none of which happened; still owe around $14,000 on car on this refi.
My question is this: We just got an IRS refund of $7000. I need to decide what to do with it. My choices are one or a combination of:
1. put $1000 in savings for emergencies
2. get my car fixed so it will last longer
3. pay off the 401k overdraw
4. pay off one of his credit cards regardless of interest rate
5. pay down the one with the highest rate (balance is $12,000),
6. pay down my car refi (at 17%)
7. put it all in the bank so our level looks better (currently around $0) and just chip away at monthly bills with it til it's gone (that's what husband did with last year's refund and we're in worse shape than before)
8. pay off a few little cards like Sams and Discover
Any suggestions? I've been wanting to pay off cards and stop using them (hard for him to do), but each time we get money, he does like what I described earlier, and nothing changes. This time, I'm not giving him access to it. What's the most logical and productive thing to do?
My question is this: We just got an IRS refund of $7000. I need to decide what to do with it. My choices are one or a combination of:
1. put $1000 in savings for emergencies
2. get my car fixed so it will last longer
3. pay off the 401k overdraw
4. pay off one of his credit cards regardless of interest rate
5. pay down the one with the highest rate (balance is $12,000),
6. pay down my car refi (at 17%)
7. put it all in the bank so our level looks better (currently around $0) and just chip away at monthly bills with it til it's gone (that's what husband did with last year's refund and we're in worse shape than before)
8. pay off a few little cards like Sams and Discover
Any suggestions? I've been wanting to pay off cards and stop using them (hard for him to do), but each time we get money, he does like what I described earlier, and nothing changes. This time, I'm not giving him access to it. What's the most logical and productive thing to do?
