[USER]

After a year of unemployment I finally got a job offer(company closed due to bankruptcy, job market sucks).

Unemployment benefits, emergency savings, and my husbands income kept us afloat but we did take out some debt.

Before we were fully debt free and feeling really good.
Now that I’m finally going to be working again, how should I tackle this?

I will have roughly $2,000 per month left over with my new job.

$7,000 personal loan to cover tuition – 17% interest, $240 monthly payment

$3,800 credit card debt – 20% interest, $45 monthly
$3,300 personal loan – 8% interest, $70 monthly (house repairs)

Small personal loan of $3,000 at 0% interest but $296 per month for 6 months (medical)

HYSA was at $25,000 and is now at $17,000.

Should I completely drain the HYSA to be debt free again and rebuild from there?

Or put the $2,000 monthly straight to paying off debt?

[Karina]

I would definitely start paying off the highest rates debt
1. 20%
2. 17%
3. 8%

As any of these much higher then HYSA gives you.

Then see what makes sense to payoff quicker the one with 0% as it might be limited promotion after which percentage will appear or start contributing to HYSA back.

[William]

If it was me, I’d save that $2k or send it to the debt for the first 3-6 months to make sure the new job is a good fit and it feels like there’s job security, then use the HYSA to pay off the debt.

Those debts are accumulating interest faster than the HYSA is going to make you.

[Sarah]

Drain the hysa to pay off your debt and then start stocking it back up again.

It’s crazy to be paying those interest rates.

[Caroline]

I’d drain 10,800 towards the 20% and 17% interest. That leaves you with $6,200 in case an emergency happens.

Pay the 3,300 within 2 months and then get back up to a 3-6 month emergency fund before paying off what’s left of the 0% interest medical debt.

[Jade]

Drain it, pay off ALL debt, then start again.

[Author]

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