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Getting out of debt - bonus?  

post #1 of 13
Thread Starter 
Hi mamas, the weirdest thing happened today. We are deeply in debt - it goes back to a time when my dh was unemployed for several months and we had no income. Anyway, this has been our biggest burden the last 4 years; coupled with the fact that we don't own our own home.

So my dh was doodling on a piece of paper this morning and wrote down how much we would need to clear our debt completely. He had a meeting scheduled with his boss for later that day and when he got called in, his boss offered him that exact amount as a bonus!!!!!: HOLYFREAKINCRAP!!!!!!!!!!!!!!!!!! When my dh called me, I just collapsed on the floor sobbing hysterically. Weird, but you will not believe the stress this has had us under for the last 4 years. I still don't quite believe it - it's not quite real.

Now the question is, what is the smartest way to use this money. Do we use that money to clear all of our credit cards or do we keep some back for a deposit on a house?
post #2 of 13

Well......

Unless you can find some form of investment that would earn more money than you are currently paying in interest on your debts, pay your debts. That is, provided, that you currently have some form of emergency fund. Otherwise, please put some of that money away for an emergency fund such that you aren't forced to go into debt if some situation should arise again.

Elizabeth
post #3 of 13
That is a great story. Get rid of the credit card debt first! You are paying interest on them and to have the money available and not pay it off doesn't make sense. You can save for a house later or get financing with no money down. Credit card interest is a killer!
post #4 of 13
Uhh, when divine providence gives you exactly what you need, use it for what it is intended for!!
Then put your typical cc payments into a savings account, to save for a house.
BTW. Congratulations!!!
post #5 of 13
OH man what great news! I'd definately agree with PP and use it for what it's intended for...pay off all that credit card debt, then save what you'd pay for a down payment on a house!
post #6 of 13
I also vote for paying off the debt.
post #7 of 13
Pay off the debt. Then start saving for your house!
post #8 of 13
Quote:
Originally Posted by 2busy2clean View Post
Uhh, when divine providence gives you exactly what you need, use it for what it is intended for!!
Then put your typical cc payments into a savings account, to save for a house.
BTW. Congratulations!!!
:

then for the next few months, take all the payments you would have paid to your debt and place it in a home fund.
post #9 of 13
Will taxes be taken out first? If not, set aside the amount that the IRS will require--put it in the bank.

Pay off consumer debt. Credit cards gotta go first. Then take the money you were paying on the cards and start stashing it in savings. You'll save up for a house in no time!
post #10 of 13
What an amazing blessing!!

I would pay all your debt off. Then you can take the money you were spending on that debt and put it toward savings for a house.

I'm so excited for you!
post #11 of 13
Definitely the debt, just looking at the words you used - you didn't say 'oh we happen to have this debt' - you are burdened terribly by it, so get rid of it. Credit cards gorge you, its truly insane and very hard to dig out of the way they keep piling the interest on.
post #12 of 13
can i just joke that i hope your blessing is contagious!
post #13 of 13
Thread Starter 

grattitude

Thanks for all your replies, ladies. The enormity of this has not fully sunk in yet - I don't think I have ever been in pocession in this much cash in my entire life. : : : : He actually gave us a little more than the amount he originally told my dh - so how weird is this - even after tax we have exactly what we need to pay off all our debt.

I have been been oscillating between feeling incredulous, hysterical, weepy, in denial and strangely numb. I just haven't let myself feel outright unabashed joy yet... we're still waiting for the $$$ to clear, but I guess I will feel it any day now, once we make those payments to clear the cc completely!!!!

I have no idea how to thank this guy - my dh obviously has - but I think I may just embarrass the heck out of the guy.
How does one say thank you for a gift of this magnitude?

Michelle - who now, if never completely before, really believes in the power of writing down what you need....
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