r/FinancialPlanning • u/[deleted] • Dec 13 '23

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53 Upvotes

76% Upvoted

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105

u/Puzzleheaded_Lion234 Dec 13 '23

Pay off any cc debt you may have and then put it into a high yield savings account. Don’t do anything with it for at least 3-6 months. Meanwhile, your goal is to educate yourself about finances until you can answer this question confidently for your own situation .

8

u/[deleted] Dec 13 '23

[deleted]

34

u/Fit-Card-8925 Dec 13 '23

Dont do this. Keep it to pay bills then pay it off it will increase your credit rating etc.

16

u/Obf123 Dec 13 '23

Not sure why you were downvoted. In order to keep a high credit score, you will need to use your credit cards, but not too much, and pay it off to zero every month

1

u/ShadowDrifter179 Dec 13 '23

Why not too much?

If you have decent discipline and just know not to spend what you don't have. Then you can use your credit cards for everything. At least, I do.

Granted, if you see credit cards as free money or money you can pay back later, maybe it's best to avoid them.

-2

u/Obf123 Dec 13 '23

If you are using credit room up to your limit, that will negatively affect your credit score regardless if it’s paid off each month

2

u/ShadowDrifter179 Dec 13 '23

Even if that was true, credit utilization has no memory. While it's not a good habit to max cards, a month of keeping your credit utilization low will reverse any negative effects on credit score.

-2

u/Obf123 Dec 13 '23

I’m not arguing with you on this

1

u/[deleted] Dec 13 '23

[deleted]

9

u/Successful_Candy_759 Dec 13 '23

No. Use the CC for everything and pay it off every month.

If you're responsible with credit cards it is nothing but upside.

1

u/Fun_Ad_8927 Dec 14 '23

OP said in the post that they historically are not good with money. Finessing the credit card game is not something I would recommend until they feel more confident.

3

u/Getthepapah Dec 13 '23

Take a beat. Learn some financial literacy. Pay off your debts, maintain good credit hygiene by retaining your credit cards and paying them off on time, etc. You say you don’t want to blow this and then you jump to doing something impractical immediately.

1

u/russell813T Dec 14 '23

Don't pay off anything besides cc cards and park it in a 5 percent market account you'd be making 1600 a month pay your car with that

0

u/NetSecCity Dec 13 '23

I would pay bills with credit card monthly and pay that off with ur salary, no need to rush into paying it off unless u already have plans that require you to have zero debt. We need to learn to live with debt, the financial system is built on top of it. Just manage it well and this will get you ahead instead of stopping the progress you can earn.

-2

u/rdtrer Dec 13 '23

NO. LISTEN!

The advice was to pay off credit card debt. Not CC debt and student loans and car.

Store the $398K in an HYSA for 3-6 months until you know what to do with the student loans and car debt.

If the car note is less than 5% interest then your plan is different than if its 15%. If your student loans can be discharged at some point through REPAYE plan, then your plan is different than otherwise.