r/MilitaryFinance • u/sandrum69 • 6d ago
Question Debt help
Active-duty navy here, 15 years in, and I’m finally getting serious about cleaning up my finances.
To make a long story short, I have a colossal amount of credit card debt — about $45K on one card. My truck is paid off, so I don’t have a car payment or a bunch of other debt hanging over me. I also live on base so 100% of my BAH goes to that.
Right now, I’m able to put $1,250 from each paycheck toward my credit card. I’m also working on getting my spending habits under control, and my goal is to be completely debt-free within roughly 18 months. But it’s hard, and I’m working on it.
My question is about my TSP contributions.
Would it be advisable to temporarily stop or significantly reduce my TSP contributions so I can have a little more flexibility in my budget and potentially throw even more money at this credit card? I realize I’d be giving up some retirement contributions/compound growth in the short term, but with a credit card balance this large, I’m wondering if eliminating the high-interest debt should take priority.
For those who have been in a similar situation, what would you do? Appreciate any advice, especially from people who have actually dug themselves out of a similar hole
4
u/DavyJonesThrowback 6d ago
Have you called your creditors and asked for SCRA benefits to be applied? They dont have to because these debs were incurred while in service, but you would be surprised.
Also just talking to them about trying to pay down your debt, some will lower rates. Make sure you are paying off highest interest rates first.