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Old 07-14-2017, 01:12 AM
MegaMan45 MegaMan45 is offline
Junior Member
Join Date: Jul 2017
Posts: 16
Default Re: Should I pay down debt or invest

Dave Ramsey recommends using a debt snowball method where you pay off the smallest debt with the least amount of interest first, then work your way up. So you can use the life insurance money to knock out the car and student loan debt. After which, you could try refinancing on the home and then pay that off.

Thanks to your hefty amount of savings (36k) you have about 15 months of living expenses if you generally spend about 2,400 a month. However, I'm assuming you still work so you could try to reduce your expenses so that your family would solely live on your income until your husband finds another job. You can let your savings earn interest and grow and only use it when you really need it.

You could potentially invest while still paying off your home once your husband finds another job. It is better in the long run to invest as early and as often as you can. Also, budgeting software like MINT might help you find ways to live off your income until your spouse is fully employed. That is my suggestion. Of course, weigh your options carefully and I hope everything works out.
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