tldr: should I stop contributing to my tsp to py off my debt
this is my first time being in debt and it all just creeped up on me. I hate this feeling I got a spouse who makes about 200k a year but she has spending issues and I have been trying to keep up with is not easy the dinners the dates the little extra things we buy here and there add up. anyway we did talk about it and I told her I am not going to be spending any more money and all my extra cash will go to paying off my debt and if she wants to go out or do anything she'll either have to do it herself or pay for everything. she was understanding so thats good.
I got a total of 23k of debt a mix of credit cards and loans all credit cards are at 4% apr i got 2 loans from affirm at 35% (i know i know) and a car loan at 9%.
I have been contributing $330 (10%) of my pay to my tsp.
I will be adding more to my credit card soon too since I I PCSing and ill have to buy all brand new things like pots pans and everyday items since my spouse can not move due to work so ill be geobatching. I feel like im slowly drowning and I am thinking of just stop contributing to my tsp until I at least pay off half my debt.
as of now I have about an extra $900 after all expenses to do whatever with. so thats going to paying down my debt if I stop contributing to my tsp ill have 1.2k extra.
if anyone has ever been in a similar situation I would appreciate some advice.
Should I stop contributing to my TSP to pay off debt
byu/dartmorth inMilitaryFinance
Posted by dartmorth
2 Comments
At the beginning of our marriage & investment journey, I reduced the contributions, but didn’t stop it completely. I even opened other retirement accounts later & put some rather than none all the while still knocking down debt. I’d focus on those higher percent interest loans first! Snowball those payments once you pay one off, move it on to the next & so on. Good luck.
Because those two loans have such a high APR, I would stop all contributions and get those handled. After that, would start contributions back up. 9% is still high, but not outrageous.