I’m 31 and just received a 2.5% increase so now I’m making $62,000 per year take home pay $4,200 per month. I have around $8,500 in credit card debt with 1% interest on a balance transfer. I plan to do a second balance transfer on another card when the promo ends at the end of the year at a 5% fee. Also 1% for two years. At my current rate I should pay it off in 2-3 years.
I’ve been sinking around $300/month into CC debt and contributing 0 to retirement. I have $2k retirement from a previous employer. I have about $25k in student loans and enrolled in the SAVE program and only pay about $35/month.
After $773/month child support, utilities around $300/month, rent at $900/month I have roughly $1600/month to spend on food for myself and 2 kids, gas, entertainment, debt, and savings. I work a second part time job to supplement my income for “fun money” for the kids and I to go out making around $200-300/month. By the next paycheck I break even and have nothing in my checking account living paycheck to paycheck. I have about $300 in a savings account.
My question is what should I focus on “paying” first? Should I throw all my money into my debt first or build savings? Should I begin a retirement with my current employer or focus on debt/emergency fund first? My debt has played a big toll on my mental health and want to be the most financially responsible I can be
original posted by Distinct_Coast8645 to r/personalfinance on Wed, 17 Apr 2024 15:31:25 GMT.