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[quote=Anonymous]There seems to be a lot of financial gurus on dcum, so I thought I'd ask for some opinions.  I just got my credit report, and reality has set in.  I knew our credit cards had gotten out of control, but I didn't do the math to see just how much debt we actually have.  My credit score is good though - 745.  So, here's where we are:

credit cards: $18,000 ( all but $4K is 0% interest)
what we owe on car:  $13,000 (3 years left on the loan)

So, now I need to figure out how to get out of this, and soon!  We do have about $50K in mutual funds.

If we sell $10K and apply it to our credit card debt, we could pay off the rest in 6 months or so.  but we wouldn't be able to establish a cushion in our bank account during that time, so I feel like we would just fall back into credit card debt as soon as some unexpected expenses came up.

Or should we get $18K and put ourselves on a strict savings plan so that we can create a cushion?

OR should we sell $30K and pay off cards and the car?!  Then we would be able to save up pretty quickly and invest again.  Plus we would be saving the interest on the car.

OR should we just chip away at the debt since it is mostly 0%?

Just not sure what to do.  We hate having to sell, but I think it has come to that.  We do have retirement/college money but I don't want to touch any of that.

TIA![/quote]

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