blade10327
New member
Super quick background details: E6 with 9+ years, “High 3” retirement, married with one kid, TSP: $22,000
So me and my wife ended up in a rough situation where we were in the middle of moving into our new home and then had to pay for multiple funerals out of pocket and having to handle some financial problems for her elderly mother in law.
Our current debts are as follow:
•$9k @ 11.2% APR credit card
•$3k @ 9.7% APR credit card
•$4k @ 7.8% APR loan for home improvement
•$18k @ 0.0% APR car loan
We’ve never really carried monthly debt before the last six months so I’ve never had to deal with the stress of it and honestly I’m not too comfortable with it.
Is it worth cashing out a portion of my TSP to clear out all my interest accruing debt? I “set it & forget it” for the most part with my TSP maybe taking a look once a year if some groundbreaking news comes out on better ways to disperse it.
Prior to all this I was doing 7% contribution but right now have it at 1% to compensate for the extra monthly payments. I want to cash out, pay off, then bump up to 10% and move on.
Me and my wife are both 29 so we have plenty of time before it matures and becomes accessible obviously. I just don’t like the mental weight of this debt over my head and it just came at the absolute worst time, my wife transitioned to a SAHM for our newborn & a PCS, so these expenses really caught us off guard and I’ll prepared.
Any advice would be greatly appreciated, just wanted to make sure I’m not making a detrimental decision out of fear. Thanks in advance!
So me and my wife ended up in a rough situation where we were in the middle of moving into our new home and then had to pay for multiple funerals out of pocket and having to handle some financial problems for her elderly mother in law.
Our current debts are as follow:
•$9k @ 11.2% APR credit card
•$3k @ 9.7% APR credit card
•$4k @ 7.8% APR loan for home improvement
•$18k @ 0.0% APR car loan
We’ve never really carried monthly debt before the last six months so I’ve never had to deal with the stress of it and honestly I’m not too comfortable with it.
Is it worth cashing out a portion of my TSP to clear out all my interest accruing debt? I “set it & forget it” for the most part with my TSP maybe taking a look once a year if some groundbreaking news comes out on better ways to disperse it.
Prior to all this I was doing 7% contribution but right now have it at 1% to compensate for the extra monthly payments. I want to cash out, pay off, then bump up to 10% and move on.
Me and my wife are both 29 so we have plenty of time before it matures and becomes accessible obviously. I just don’t like the mental weight of this debt over my head and it just came at the absolute worst time, my wife transitioned to a SAHM for our newborn & a PCS, so these expenses really caught us off guard and I’ll prepared.
Any advice would be greatly appreciated, just wanted to make sure I’m not making a detrimental decision out of fear. Thanks in advance!