We have a mortgage at $207K at 5%, a HELOC balance of $7500 at 3.25% and a credit card balance of $3300 at 13.9% APR.
In savings we have $116K and in a mutual fund we have $21K
My plan was to take from savings and pay off the credit card and the HELOC and then take the money I would be paying those each month and put it back into savings. I figure I would get back to the current balance in 7.5 months.
My wife thinks it's best to pay off the credit card, pay the minimum on the HELOC and pay extra towards the mortgage and take $10K and put it into the mutual fund.
Who's plan is better?
Subjective I know but I figure I'd throw this out there.