Navigating a small amount of debt the correct way
Hey There-
My wife and I currently have some medical debt and expensive car repairs that were put on one of our credit cards. We’ve managed to get that balance down to around a total of $10k. We didn’t want to completely exhaust the rest of our emergency savings which sits right now after using some at $7,000.
Monthly total expenses are right around $7500-$8000 and HHI net is $11,200. We have been maxing out our IRA’s with lump sum contributions every April through bonuses, etc and do not have 401K’s through our jobs. We don’t want to let ourselves get caught up in a vicious cycle and just wondering how others would approach getting this payed off quickly without paying the monthly interest on the card by not paying it off completely every month.
We typically pay any cc balances in full every month and have been for years.
This was just a rough last year with all of the expenses. Appreciate any guidance the community can give.