Got $30k windfall—pay off high-interest debt or save for house deposit?

G

GoldenDynastyDog

New Member
I'm seeking financial guidance. I'm 23, married with no kids, and my income is $140k.

We have $56k in combined debt across three loans:
  • $24k at 10.8%
  • $18k interest-free
  • $14k at 14.69%

Our rent is $650 per week. We have $5k for a house deposit, $2k in emergency funds, and $1k in shares.

I expect to receive approximately $30k soon. I must decide the best use for these funds. My primary consideration is placing it into a house deposit account to earn interest, but paying down debt or bolsteriing other accounts are also viable options. I welcome your advice.
 
Smash the debt first. Seriously. A house? Extras? Forget it. Throw that 30k at the highest interest loan. Just knock it down hard.

Maybe roll all the loans into one. Something with a lower rate. It’s like plugging a leak. Save more money that way.

Clear the debt. Then you can finally breathe. Way more cash flow. Options for a deposit open up. It’s like clearing a blocked path.
 
Tackle the debt that bites the hardest first.
This whole plan is pointless if you just rack up more debt.
On a $140k salary, you have to aggressively throw $5k a month at it to make a real dent. That means: no gambling, no casual beers, and definitely not that trendy new steakhouse.
 
Alright, so 30k straight into those two high interest loans first. That wipes out 14k.

Then, throw 16k at the 24k debt, and then put every single dollar left into clearing the final 8k.

After that, we smash all our cash into the interest free debt until it's gone. tbh, we just need to be done with this.

And once the debt is cleared, all the money we were putting toward debts now goes straight into the deposit. nvm anything else.
 
Back
Top