How to spend an unexpected student loan refund

[Anonymous]

I recently discovered that I paid off my student loans under the Public Service Loan Forgiveness Program, and I'm owed a refund of about $10,000 for overpayments I made. This 10K is like a windfall and I want to spend it wisely. I have about 40K in credit card debt, but I really need cash for an emergency fund for my family of 4. What should I do with the money?

[Anonymous]

You know. That CC debt is burning a hole in your wallet.

[Anonymous]

You need to pay down the credit card debt.

[Anonymous]

I would pay off 10K of the credit card debt. Then, whatever amount less you are paying in interest each month, put that amount toward the remaining principle each month. As you keep doing this, you will eventually pay off the credit card debt. You will enjoy the stress reduction of not carrying debt.

[Anonymous]

Put 3K in high-yield savings and 7K on credit card debt.

[Anonymous]

Anonymous wrote:Put 3K in high-yield savings and 7K on credit card debt.

OP here. This sounds like a good plan to achieve reduced credit card debt and a small emergency savings. Thanks!

[Anonymous]

Don’t be a fool. Put all on CC.

[Anonymous]

Anonymous wrote:I would pay off 10K of the credit card debt. Then, whatever amount less you are paying in interest each month, put that amount toward the remaining principle each month. As you keep doing this, you will eventually pay off the credit card debt. You will enjoy the stress reduction of not carrying debt.

This 100%!
That CC debt is likely at a high interest rate. You need to do everything you can to get rid of it. Maybe put $1K into an EF, if you are 1000% certain you will not spend it (but someone with 40K in CC debt is not likely to have that self control)

[Anonymous]

All in on the debt. You thought it was gone anyway. Lower your accumulating debt!

[Anonymous]

Credit card debt. That is costing you way more than you could ever make by saving some. And once you pay it off, you have credit to use for emergencies.

[Anonymous]

Hookers and blow.

[Anonymous]

Anonymous wrote:I would pay off 10K of the credit card debt. Then, whatever amount less you are paying in interest each month, put that amount toward the remaining principle each month. As you keep doing this, you will eventually pay off the credit card debt. You will enjoy the stress reduction of not carrying debt.

Do this.

Put it towards your lowest balance card.

Get the total down to $30,000 ish, which is roughly the cost of a new car. If you can pay off a car in roughly 5 years, you can pay off your credit card.

Keep paying what you were paying before but focus it on your lowest balance card, and do NOT use the cards.

When you pay one off the lowest balance card, put all of that payment into the next lowest balance card. Repeat with the next lowest balance.

You will pay off your credit card quickly using this method, likely in far less than 5 years

Once you pay off your credit cards, you will feel a weight lifting.

[Anonymous]

Send the most toward the debt that you can spare now.

Can you lower your interest rate on the debt?

[Anonymous]

Put it all towards your highest interest rate credit card.

[Anonymous]

The credit card interest you pay is a windfall for the companies. They are glad you are a spender and you want to spend some more?
Your credit card interest total is about $700 a month at minimum. You just got help trying to keep up with the interest for the next year.
Pay off one of the highest interest one that is most likely to give you cash advance. My cards give me 4% cash advanced for years.
You need to get that spending under control.
I invest for my 11- year old already and I do it on very low income. Going shopping or treating myself or family something doesn't come close to the excitement of the investment account.
You got to know what you are giving up if you don't make changes now. Next generation may may even have to support you. They definitely won't have much money or the know-how because of your choices.
You have got to be a troll.