My money is kind of spread out all over the place, and after reviewing it against my current credit card debt, I'm thinking if I should just get all the debt taken care of first. But want to get your opinion and what you would do in my case.
Here is my situation
28, single, no one to take care of except myself.
Every month, I take about $700 of my paycheck out and put it in an ING account. The purpose of this was to just have some cash flow for emergencies. balance right now is about $6,000. Maybe even a house downpayment some day.
I deduct about $200 off my monthly paycheck and put it in my local bank savings account. Now that I think about it, not sure why I do it. I need to consolidate it somewhere. Balance is around 1500.
I have a Trow price Roth IRA, $200 taken out per month. Balance is around 3800 right now.
10% of my paycheck is taken out for a 401k, since company matches up to 6%. I do more, just because I want to load as much up as I can for retirement. Balance is around $24,000.
Right now, I have a credit card debt of 4200. After this tax season, it's going to add about $1800 more ( I lease my house out, and I need to pay the taxes on it). I also have a lasik credit card bill with 0% interest until July for 2012. balance is around 2200. After July, it will be around 1000.
Would you just take your time and pay off the cards and continue saving, or would you get rid of the card?
Right now, I don't anticipate any big purchases, but then again, you never know if anything can come up. I do plan to sell my house and get rid of the rental property w/in 1 to 2 years, if I can. I do desire to buy a house. Marriage is also something that I want to do...maybe w/in 4 to 5 years.
If I were in your shoes, I'd keep a little bit of that savings.. say $1000 or so in case on an emergency.
The very next day, I'd throw everything remaining at your debt.
With your CC, and tax debt - that will wipe out your ING account. Then, I'd pay the minimum due on the lasik bill till July, and by then, you'll have saved up the $1000 to pay it off.
Just imagine not owing a penny to anyone! Once that's paid off, all of the money you were paying towards debt can now be directed back to your savings account.
You'll be back up in no time.