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What should I do with the money in my savings account?

I am single, 50 years old, and I have a pension and 401(k). I have $10,600 in credit card debt (one credit card's balance is at $4,300 with no interest and another balance of $6,300 with 15 percent interest) and two personal loans totaling $27,000 (one loan's balance is at $7,000 with 11 percent interest and the other is $20,000 with 11 percent interest).

I recently sold my car for $18,000 and placed the money in a savings account. What should I do with this money?

Debt, Pensions, 401(k), Asset Allocation
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May 2018

Assuming you are working and don't immediately need the money for basic living expenses you should put most of it towards your debt.  Keep 1 month of expenses that you can't pay with a credit card in the bank. Put the rest toward  the 15% credit card.    I then likely pay off the smaller personal loan.   

The rest- depends on how long you wil have 0 interest on the other credit card.  If you think you can pay it off before it goes to market rates put rest of savings towards the other personal loan. If you can't payoff the 0 interest card before market rates- keep money in savings - and pay towards it until the interest rates goes up.

 

Make sure to make some budget changes so you don't end up in the much debt again.

 

 

May 2018
May 2018
May 2018
May 2018