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Hello Credit boards,


I found out a month ago that the Dept of VA made an error on my disability and is giving me an 8 yr retro check of 121k tax free lump sum that will arrive soon. I was wondering what advice would you give me. Here is a little background. I have a Ch 7 that discharged Feb 20, 2014. I am renting to own a 1981 mobile home and I owe 24,800 to pay it off taking off the interest. It was a 6 yr contract at 6% interest. I completely fixed it up and it is actually nice. It is just my wife, my 2 yr old son, myself, and a baby on the way. I have about 8k in small loans and credit cards that I opened up to reestablish my credit with some positive lines. My wife and I make 5400 a month tax free from the VA. They also pay my wife to be my caregiver. Any advice is appreciated on what you would do with this windfall blessing from God above. Thank you so much.

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Congrats! I don't have any advice on how to spend or invest that money, but if I were you I'd talk to a professional financial planner.

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$24,800 --> mobile home loan

$8,000 --> other small loans



$32,800 debt payments = DEBT FREE


Most would agree on the above.


$121,000-32,800 = $88,200



There are several smart moves from here.


1. EMERGENCY FUND. Many say three to six months expenses in checking or money-market account. You have a guaranteed income unless we have some kind of apocalypse, so you can lean towards the lower end.


I will just say to get your monthly budget together, and multiply by at least three.


Mmmmm. Now, this is where it gets tricky without more information.


2. Term life insurance policies? (I don't know the deal with survivorship benefits for VA disability)


3. Vehicles?


4. Children's college funds


5. ????

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Thank you so much Terry.


2. 100k life insurance thru govt

3. Sorry forgot (not sure how or why I wud forget my truck lol) bout my 2014 Sierra. I owe 42k(was upside on our last car) apr is 2.9% only have had it for 7 months

4. One of my children can use my Hazelwood Act award in Texas. But no I haven't started a college fund

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