Heres my question-I recently received a $9K gift. It just so happens I am doing some home repairs immediately that will equal about $9 or $10K. These must be done. I need a new roof right away which is about $5K and the other necessary repairs will be another $5K. I can use that gift to pay for these repairs and its done. However I am also $19K in credit card debt at 8.24% APR purchases and $1K credit card debt on cash advances at 19%.
Should I use the entire gift to pay down the credit card to $11K and then get a home equity for the $10K in home repairs I believe is at 3.74 or 4%? What do you think?? What is my smartest move?
If you don’t have any money in a savings account to fall back on in case of emergencies then I think you should use half the gift money to reduce your credit card debt, save half and get a home equity loan for the home repairs.
You can always contact your credit card company and ask if there is a process to specifically apply $1,000 to the cash advance, I doubt there is. Generally balances are reduced on credit cards with the lowest interest being paid off first.