WWYD with tax refund?
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| Sun, 01-11-2009 - 11:01pm |
DH and I are expecting a decent-sized tax refund this year (I hope we're not wrong). I plan on putting most of it toward debt/EF. If we're getting as much as I'm guesstimating, we'll have some options. We need to pay off our 90 days same as cash card that we had to get to pay for brakes on both cars 3 days apart. that should be no problem. After that, we might still have enough to pay off one of our cars. On one hand I'd love to have it paid off because it will free up $250 a month that we can use for our debt snowball. OTOH, that's our lowest interest debt and it will be paid off in October anyway. The other option would be to put a lump sum on our evil 28.99% CC to get it paid off that much faster. I don't think we'll get enough to pay it off completely, but we should be able to make s huge dent in it.
WDYT? Pay off the car or put it toward the CC?






Personally, I would probably put it toward the CC.
Teresa
http://www.affordingpickles.blogspot.com
If it was me and I had $1000 in my emergency fund, I would apply it to the next debts on my list. We went from smallest to largest to pay everything off, so that's the order in which I would apply the money.
Sue
Pay off the credit card.
Ultimately you will have to decide when you see how much it is. It may change 5 or six times in your mind until you actually receive it, but don't stress. It sounds like you have very good intentions either way. I would stay away from the car loan though. Let that one play out on its own. Increase your peace of mind with the efund( a little) and knock down the credit card debt to avoid the stupid interest with the rest. That is my vote. Ps. I hope I get some back too. That would make me very happy! So cheers to both of us and better 2009!
I plan on paying our signature loan off and that would free up $193.08/mo and we'll just save whatever is left.
We don't have an EF yet so we need to start working on that.
Taking it day by day...
Taking it day by day...