I am a single mom who receives no child support and have been struggling to pay my bills - I accrued about $6000 in cc debt supplementing my income for survival following the divorce. I work full time through which I recently received a raise of an addiltional $200 per month and now also have a part time job. I am finally at the point where I am able to pay all of my bills, contribute to savings and begin to pay off my cc debt. I also have a small emergency fund.
My regular monthly budget is based on 2 paychecks per month and my paycheck from my part time job - my budget includes $ toward saving and debt repayment....At my company we get paid 26x per calendar year -so Aug and Jan each have an extra check -In the past they were a lifeline...but for the first time I can think of them like bonuses. - if I didn't get them we would still be okay... When I get the extra check in August I will probably set aside a couple hundred for school supplies and clothes for my children. With the balance should I: 1)use the total amount toward debt and still make my reg budgeted debt payment (which will put a decent dent in my debt)...2) save all of the aug check as part of my Emergency Fund and only make my regular budgeted debt payment or split the extra check 50/50? or should I use 75% of it toward debt and/or ef and splurge with 25% of it....because it has we have been struggling financially for so long and we do need to have occasional treats and entertainment.
What would you do?