Should I Pay Off Debt or Save My Tax Return?

F

FierySpark18

New Member
My tax return is $3,030.
Debt:
  • Amex CC: $3,000
  • Citi CC: $7,039
  • Car: $30k
Savings: $1,006.72

I’m debating whether to use my tax return to pay off my Amex and close the account. I earn 600-800 weekly from a job I started on March 4th (this is an extra job to pay off debt before clinicals in September).

Should I pay off my Amex? Or put the money into savings? I’m excited to pay it off but terrified something will happen, and with only 1k in savings, I could end up back in debt—either 10k or $7k if I pay off my Amex.

Any recommendations are greatly appreciated! Thanks again!
 
Pay off the card.
Each month, split your payment in half half goes to savings, half to Citi.
Once you’ve saved $2k, increase your Citi payments. After payoff, split that amount in half half to savings, half to the next bill until you reach $4k in savings.
 
Pay off the card. You’ll feel a sense of accomplishment when it’s done. Once it’s paid off, consider setting it aside. You’ve got this.
 
Back
Top