Here’s the plan:

1. Use Savings to Pay off Credit Cards.
2. Use Savings to Pay Down Final Credit Card.
3. Focus on Final Credit Card.
4. Use Work Bonus to Pay Off Final Credit Card.
5. Use Work Bonus+Snowball for Car Loan.
6. Use Tax Refund for Car Loan.
7. Use the Snowball to Pay Off Car Loan.
8. Use the Snowball to Pay Off 401k Loan 1.

Does Credit Card Debt count as a hardship?

However, even if your 401k plan does allow for hardship withdrawals, credit card debt usually doesn’t qualify as a reason to make the withdrawal under hardship rules. The IRS outlines specific reasons you can make a hardship withdrawal: Paying for certain medical expenses. Burial and funeral expenses.

How much does the average person have in credit card debt?

The average debt per person is between $9,111 and $10,235. Millions of consumers carry credit card debt, and this burden is carried regardless of age, race or credit card company affiliate. Most people aren’t dealing with a single credit card either, but carry an average of three cards.

Is there a drop in credit card debt?

Credit Card Debt Saw Unprecedented Drop in 2020. Since 2019, outstanding credit card debt has dropped by 9%, bringing the total for Q3 2020 to $756 billion, according to Experian data. This drop represents over $73 billion in balances that consumers have paid down in the past year—despite a recession.

What was the US credit card debt in 2020?

Prior to 2020, consumer credit card debt grew for eight consecutive years, reaching a record high of $829 billion in 2019, according to Experian data. In the past year, this balance decreased by 9%, bringing total U.S. outstanding credit card debt to $756 billion, the lowest point since 2017.

What should my annual credit card limit be?

What should my credit card limit be? 1 Annual income. Typically, individuals with higher annual income get a higher limit. 2 Expenses. Having a high annual income will mean very little if your expenses are higher. 3 Employment. Having a steady job may get you a higher credit line. 4 Creditworthiness. 5 The type of credit card. …