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Coming to a decision

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by , 02-04-2009 at 04:46 PM (718 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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Comments

  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.