Looking for advice. I’m 43 and retired from military in 2022. (23 years). Receive 100% VA Disability(P+T). I have $40k sitting in TSP. Haven’t contributed to it since I was active duty. I have roughly $20k debt in credit cards. The interest rates are really high. Making minimum payments monthly, but they are creeping up as the time goes by. I want to use my TSP money to pay off all credit card debt and have no monthly payments that are due. Roughly $800 month total in payments. I have $19k in Roth. Also have a Savings/emergency fund with about $25k. I’m not worried about retirement age because I will still have pension/VA disability for the rest of my life.
What should I do to help with debt? (Just spouse and Me at home. All kids on their own)
Military Pension and 100% VA Disability pay off CC debt.
byu/Buecyris inMilitaryFinance
Posted by Buecyris
6 Comments
Probably just pay off your credit cards with your savings. You’d still have 5K, and you’d just have to build up your emergency fund again. Your debts are 100% out performing your investments, so with the debts you’re going backwards.
After paying off your debt i would suggest to just reassess where your money is going and get your budget together, and enjoy retirement!
Minimum payments aren’t enough for that much debt. Are you actively working? If so; if all your bases are covered (ie rent food car) then you need to attack the shit out of that debt. Live below your means; and define what your means are. How did you get the debt in the first place etc etc
No you should not rely on your pension for retirement. 35k in 30 years is a 250k @7%. Dont touch your TSP or you will regret it.
I own my own business. (Home inspections) Business has been slow because the market and housing is ridiculous. I’m barely breaking even on keeping my business going.
You have to look at your spending habits between disability and pension you should be have monthly income of 6,000, you should be able to aggressively pay this credit card down to zero within a few months especially if you dip into your emergency fund
Your emergency fund is what covered this. Throw everything but $1k at it from there, and strip your budget to the bare minimums. This could be gone in a year WITHOUT touching your retirement accounts.
You also don’t mention another job – get one.
Do you have a job?
Live off of your job income and use your VA/pension income to pay down your debt.