Reply to What to do first? Debt vs Savings/Retirement

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]OP here. Here is an update to the debt situation:

[b]Credit cards: $7K @ 24%[/b] (These have been paid)
Car: $30K ($820 payment monthly w/48 months remaining) 
Car: $17K ($492 payment monthly w/48 months remaining) 
[b]DH's CC consolidation loan: $11K @ 5% interest [/b](He just got this a few months ago)[/quote]

This loan couldn't have helped his credit score.

I think you have a good and realistic attitude, OP!  It must feel good to have those cc's paid off.  Now set aside, $1k for emergency and put any other cash you have directly toward that consolidation loan.  Then you can sit down with DH and work on how to get through or sell the cars.[/quote]

Thanks for your helpful response.  It helped it because of the utilization. However, the loan is going to be short-term and we will pay it off quickly. [/quote]

Everyone else here has said a lot of smart stuff (and some snarky stuff), so I'll just add that this is the second or third time you have mentioned credit score, and you guys need to [i]pretty much stop thinking about credit.[/i]

This is one of the things you'd get from Dave Ramsey that would really be worth your while (and I'm an atheist who does not share his views on money and spirituality, AND he is dead wrong about a lot of things pertaining to investment, but he is 100% right about behavioral finance, so start listening to his podcast--it's free and covers everything in the books).

Credit score can have an impact on insurance rates--so shop around--but it is primarily relevant as it pertains to your ability to buy more stuff using credit. With your income and debt, you shouldn't buy anything else on credit--including a house--for about 5-10 years. That is more than enough time for whatever small impact a decrease in utilization has today to completely wash out. So stop looking at your credit scores and just watch those debt numbers going down.[/quote]

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