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Coming to a decision

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by , 02-04-2009 at 04:46 PM (870 Views)
As I mention, in a previous post, dh company may eventually do layoffs.

I've been in real quandry as to what to do. Do I payoff like a madwoman or save.

What I have decided to do, is find a balance between both. my 1300 snowball is going 50% to savings, and 50% to debt repayment. It's the best of both worlds. I've had such great motivation with debt repayment, writing down what I spend, etc, that I hate to just stop. I like seeing balances GO DOWN. Now I might get into liking the savings amount go UP as well. But hte more we paydown, the less we have to pay in the event of a lay off.

So 50% of my snowball is now savings. Also, anything dh makes over a set amount will also go to savings. So each month, we'll be close to covering a month of mortgage payments. SO I can live with that. With any luck at all, there will be no layoff, and we'll have a nice fund sitting there until the next scare. (note not taking it out, even though DR figures $1000 is enough to start, I don't feel comfortable with it, not enough, I want mor elike $5000 as a bef).

So after losing sleep and looking at me pay schedules, debt repayment plans etc. This is my happy medium.

I already transferred my $650 into savings Well actually more because I also have a freedom account to cover those annual, sometimes, maintenance type payments that will eventually come up. So I feel a little more relaxed about it all.

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  1. Momto2Boyz's Avatar
    Hopefully, all will go well, and when things recover and you know his job is safe, you'll be able to pull your emergency money out of savings and make a huge payment (if not all of it) on your debt! Either way, it sounds like a safe bet to me!
  2. qsaver704's Avatar
    I too, do something similar. I use my entire paycheck (only 15 hours a week, recently cut to 10 hours) to pay debt and save. I have it right now at 75% debt and 25% savings. I know if I do get to a place where I need more savings we are making way above minimum payments on our one and only credit card (we are trying to pay it off before the 0% intro rate expires). I like the idea of splitting it. This way, if something comes up, like a car repair, you don't have to put it on your credit cards.
  3. Debbie-cat's Avatar
    I think you made a wise choice. This way you are paying down debt but will have that cushion if you need it.