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Your take home is what, at least $3k/month.

Can you pay $1,000 a month right now towards debt if you eat rice and ramen for a few months? (IE cut bills way down).

If so get that 26% loan paid off in three or four months. Then go after the credit card hard core. The car... eh, it's a bad time for loans right now. You'll probably look at 8%+ even with good credit for an unsecured personal loan and that doesn't really save much on the car. Maybe check local credit unions on refinancing the car rate, but used auto rates probably aren't much better, maybe 6 or 7% if you get lucky.

Thinking like that is how you get into debt like you have. You're getting good advice and it's frustrating that you're ignoring it. What you are doing is not working, that's why you're coming to the internet for help.

Got it. I would still recommend selling anyways, Credit Card debt is basically as bad as it gets, interest rate wise.

How much is "making more money than we ever thought possible" ?

Likely the car loan will be near or lower interest rate than the personal loan. I would think with that score your personal loan would be 10% to 16%. If you factor the car out of it right now, then you have $6,100 in debt.

How much can you pay? Can you pay $1,000 a month now based on your income? If so you would have that paid off in like six months.

Just pay down the cards fast and then go after the car payment. Paying off the cards will likely greatly improve the credit score and then you could revisit the loan to pay off the auto loan, but again, even with great credit scores the personal loans seem to be like 8-9% or higher right now and there might not be much savings compared to the auto loan rate.

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So you’re basically gambling half your savings while holding serious debt? You could lose it all in one day. Pay off your debt dude. You will lose eventually

Options are gambling. You will lose your money and be out of your “house” money. By all means if you think your 25%+ returns are sustainable, continue down this path. But that’s not realistic. You’d be better off selling those and paying off the CC debt. If 25% gains were realistic, everyone would be doing what you’re doing.

That was what we were initally planning on doing I just wasnt sure if doing it this way would be better. Appreciate it!

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Congrats on the promotion; forget about another loan with your current score and put all the extra money into the personal loan, then the credit card, then the car.

Once you are out of debt put all that money you were spending to pay it off into short term savings and use that for the house when it is time.

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If you have savings in an investment account, I would just pay off all of your high interest debt now.

OP's initial post included a hypothetical interest rate of 5.85%. At that interest rate a single person would clear the standard deduction with a mortgage amount above $221,367 and a married couple would clear the standard deduction with a mortgage amount in excess of $442,735. Assuming a 30% down payment that means a house price of 287k if single or 575k is married. And that is with no other itemizable expenses. When you buy a house you always have additional itemizable expenses like property taxes and assuming you work or spend money you are paying state/local taxes. So an average priced house with OP's interest rate and down payment would be large enough to benefit from the standard deduction if OP is single and a slightly above average priced house would qualify for mortgage interest deductions if OP is married.

You are saying, that after OP puts down 30%, that his mortgage interest would eclipse $25,900 in one year?

🤦🏻‍♂️🤦‍♂️🤦🏽‍♂️

I just………

How big are you suggesting that his mortgage is? Over a million dollars?

Honestly, you should use what you have in savings to pay off the personal loan and credit card, then use what you would have paid towards those and pay off the car loan. Then replenish savings with the intention to be debt-free when you go to buy the house. Provided it’s the kind of savings you can take from without penalty.

At minimum, stop using credit cards.

Bro you need to pay that shit off with the money in your "investment account." That's atrocious.

Wtf are you invested in? Nothing gains like that unless it is ridiculously risky. If it's risky, you do not want to invest money that you will need in a year in it.

The standard deduction for 2022 was $12,950 for single people and $25,900 for married couples. Your total itemized deductions would need to be more than those numbers. The information is available on the irs.gov

Instead of calling people names, perhaps provide some numbers or evidence to show that this is mathematically impossible would be helpful. I have provided the math and links to websites that will do it for you.

No way any investment is averaging 26% post tax gains. Use you’re investment account to pay off your debt.

Go look for some zero-interest balance transfer credit cards. Transfer and pay it off interest free. Usually Discover and Capital One have them

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