Should I use $70K savings to pay off CC debt if I’ll keep relying on cards?

[FlushSparkle]

Right now, I have $70,000 saved from my husband’s life insurance. With my heart so heavy, I’m wondering if I should use it to pay off my credit card debt. But I'm afraid I’ll just end up with debt again—my income just isn’t enough to cover our monthly needs. Childcare for my six-year-old, especially before and after school, feels overwhelming, and it goes straight on the credit card every single month. I’ve started keeping track of my other spending this month too, and honestly, it all just piles up.

 

[frenzybytes]

You should aim to keep at least 3–6 months of living expenses in an emergency fund that earns at least 3% in a money market account. This protects your investment, grows your money, and keeps funds accessible as needed though your specific amount will depend on your current debt and regular expenses.

 

[QuantumOtter]

If your son is your husbands child I recommend filing for social security for him!

 

[StarStuffPwnd]

Save your money. Buy assets that generate income. Invest in a rental property. Put a down payment on a house in a nearby county. Make your money work for you.

 

[BioshockFreak99]

Yo, hustle hard for that cash & cut spending, fr. Otherwise ur money's gone fast af

 

[RiseAbove99]

You and your child should both file for social security survivor benefits.

 

[FlushSparkle]

My son does have survivor benefits. Thanks!!

 

[turbogeck]

If I were you, I’d pay it off, put that $10,000 into a high yield savings account, and then use the rest to help cover your childcare costs month by month if you need it, that is. But hey, maybe with that SS money coming in, you might not even need to dip into it!

 

[Savethechick]

You absolutely must slash your expenses or aggressively boost your income now. Otherwise, that money is guaranteed to vanish before you even notice it’s gone.

 

[frostforg3]

Wait, so you're going into an extra $445 of credit card debt EACH MONTH bc of childcare?! If that's right, you'll be back at $10k in less than 2 years and that's not counting any emergencies. Tbh this isn't sustainable at all. Imo you've tried asking for help already, so nvm that you gotta cut costs or make more money, ASAP.

 

[ANT]

Yes, pay off that credit card. High interest debt grows fast.

Next, ask your HR about a Dependent Care FSA. It’s a benefit that lets you est aside pre tax money for childcare. You pick an amount, and it comes out of your paycheck before taxes. That means you pay less in taxes.

Every time you pay for childcare, submit your receipt. You’ll get reimbursed from your FSA. It’s like giving yourself a tax break on childcare costs.

Example:
Childcare costs $500/month
Yearly total: $6,000
If you’re paid every two weeks: $6,000 ÷ 26 = about $230 per paycheck

I used this for my daughter’s after school care. It really helped!

Also, check out local options:
Boys & Girls Clubs
YMCA
City or county after school programs

Many offer financial aid or lower rates. Every bit helps!

 

[PainfulPwnst]

Everyone else has given good advice but I want to add that I am so, so sorry ... Please, please get yourself and your son therapy grieving is hard, but it’s important.

 

[MemeLord1985]

Oh, and don't forget to apply for social security death benefits for you and your daughter too! That should really help with daycare and life expenses.

 

[MidnightSketcher]

A financial planner can help. They invest for you. It's free. They earn commission. Start with around five thousand. It grows. They choose the investments. My family did this. Grandmother. Parents. Siblings. Me. It’s been priceless for them. Pay off debts. But put what you can into safe, slow growth.

 

[codecanvas]

If it has to go on a card use a card with rewards

 

[Vintagedean]

Hold onto the 70k. Paying it off now means you’ll just rack it back up.

Excellent work tracking expenses. It’s always great to find an extra 10–20 bucks when bills come in under budget.