🔺 r/personalfinanceuApprehensive-Dog-325·16 days ago
I(24) have $10k in credit card debt, $15k in savings, and our household income just increased — should we wipe out the debt?
My fiancée (22) just started working, so our household income has changed pretty significantly. Until now, I was basically the sole provider. She brings home about $4,312/month net . I bring home about $1,700 biweekly net , after contributing roughly $200/month to my 401(k) . In a normal month, our combined take-home is about $7,712 . Our recurring monthly bills are around $2,452 , before groceries, gas, eating out, etc. The problem is that I have about $10,000 in credit-card debt at roughly 28% APR . I’ve paid this card off completely twice before and ended up maxing it out again both times. Some of that happened while I was supporting us on one income, but I know the bigger issue is that I need to change how I use credit. The part I’m embarrassed about is that my fiancée doesn’t know about the debt yet . She has about $15,000 in savings , but that money is hers. She saved it herself. She has always told me that her money is my money and that we’re a team, but I still feel uncomfortable even thinking about asking her to use money she worked hard to save to pay off debt that I created. My plan is to tell her everything before making any decisions. One option I’ve been considering i…