take him up on his offer ??

**itlw8** · 08-25-2008, 09:58 AM

I have been working hard to pay off the cc debts we can see the light at the end we are so close

so Sunday dh offered his boat fund to pay them off I said no... Was I smart or stupid.

my thinking he has saved a tiny amount from each check for 2 years to build it up $1200 and it would be along time before it would get replaced... it is like a second emergency fund but this is not an emergency.

his thinking the cc would be almost paid off then where I say they are at 0% and I can do it before the rate goes up.

We left it at that with him thinking of getting a p/t job and leaving the money in the account , adding to it for the boat he really wants or the bargain he finds.

Should I have said yes or left it as is knowing it would be there in an emergency

( we do also have a baby EF)

**Greebo** · 08-25-2008, 10:04 AM

Honestly?

Take the money.

The sooner you get rid of your debt, the sooner you free up all that cash on a monthly basis to do with for fun, giving, investing, etc.

You don't need to be buying a boat when you don't have the cash to pay off the debt you already have. Kill the debt first, THEN save up for the toys.

**Michelle** · 08-25-2008, 10:15 AM

I agree. Get out of debt first, and then save up for the boat. You never know what could happen before the rate increases from 0% on the CC.

**joyofsix** · 08-25-2008, 10:39 AM

I think you should pay off that debt. Once that's done just keep 'paying' yourself that amount to rebuild the EF/Boat fund. Just my $.02.

**Samigirl** · 08-25-2008, 10:45 AM

I think it's sweet how he's trying to help you solve the CC problem, and you're trying to help him keep his boat fund.

That being said, pay down the CC. After it's paid off, you can put the payments you were making to the CC, in his boat fund. (Unless you want to get REALLY crazy and start paying down any other debt you might have!

)

**Denvergirlie** · 08-25-2008, 10:45 AM

bye, bye boat fund

**monkeywrangler71** · 08-25-2008, 11:01 AM

I'm going to have to disagree with everyone else. If your debts are at 0% and you think they will be paid before the interest rate goes up, then leave the $1200 in the bank. Call it a boat fund if you want, but don't buy a boat until you are out of debt. In the meantime, you have a nice cushion there in case of an emergency and if you get to the end of the 0% term and haven't paid it off, use it then.

Chances are you are more intense about paying debt than you will be about saving. You might have every intention of saving that payment amount every month when the debt is gone, but there are always going to be things that come up to tempt you to spend instead of save.

**Greebo** · 08-25-2008, 11:03 AM

Monkeywrangler: She said she already has a baby emergency fund. I'd agree with you if she didn't already have a BEF, but since she does, I'm still for paying the debt off w/ the boat fund.

Also, last I looked over her posts, at least one of those cards was NOT at 0% (something like 3%)...

**Squirt** · 08-25-2008, 11:07 AM

If the debt is at 0%, you are better off earning interest on that $1200 boat fund until the 0% is about to expire. Then, go ahead and pay off what's left with that boat fund.

I did this over the past 10 months, except as my savings grew and my debt only decreased by the minimums, I got all impatient and paid off a big chunk of my 0%. Not the most financially beneficial thing to do, but it made me feel better. I guess that's what all the Dave Ramsey stuff is built on. And I guess it works.

**happimommi** · 08-25-2008, 11:12 AM

Use the money to pay off the cards with an interest rate. If you are at 0% on some cards, keep working to pay those off. If you are paying interest and have money in the bank it seems counterproductive to me.

**Greebo** · 08-25-2008, 11:15 AM

What will the interest rate be on those 0% cards when the 0% period ends? If its like most 0% deals, when the 0% interest period ends, you'll be hit with interest on the outstanding balance for the entire period.

In which case, if the interest rate on those 0% cards will be higher than the interest earning cards, its better to pay those down as much as possible.

**itlw8** · 08-25-2008, 11:17 AM

Dang I hate to admit when you guys are right... AND I was called out for not being exactly truthful. I think maybe we should talk more about this fund tonight.

I have done very well in the last few weeks paying off stuff so it would wipe out the 3% card

thanks

**itlw8** · 08-25-2008, 11:29 AM

Originally Posted by Greebo

What will the interest rate be on those 0% cards when the 0% period ends? If its like most 0% deals, when the 0% interest period ends, you'll be hit with interest on the outstanding balance for the entire period.

In which case, if the interest rate on those 0% cards will be higher than the interest earning cards, its better to pay those down as much as possible.

7.9 starting in Jan almost paid off there $600 left Capital one not retroactive interest.

2.99 is until I pay it off as long as nothing else goes on the account $1200 left

and the other is Sears so something horrible and for the total of the purchase . May on that one with $1000 left

Luckily I replaced 2 of the kids in the childcare that aged out so income was not cut as much as I feared so I am sticking about $600 a month to the CC debt and any extra I can find.

**Greebo** · 08-25-2008, 11:41 AM

Then I'm thinking Cap 1 first, just cause that will kill it. The other half of the boat fund can go on Sears, which means you'll have another $400 to pay off by May - easy peasy.

What do you think?

And gratz on the kid replacement. I didn't know it was that easy. I know a few moms who could stand to replace THEIR terrors...

**monkeywrangler71** · 08-25-2008, 12:03 PM

Originally Posted by itlw8

7.9 starting in Jan almost paid off there $600 left Capital one not retroactive interest.

2.99 is until I pay it off as long as nothing else goes on the account $1200 left

and the other is Sears so something horrible and for the total of the purchase . May on that one with $1000 left

Luckily I replaced 2 of the kids in the childcare that aged out so income was not cut as much as I feared so I am sticking about $600 a month to the CC debt and any extra I can find.

You're paying 2.99% on the second card now? If so, I retract my earlier statement. I would never have money sitting in the bank while paying interest on a cc.

If you are putting $600 a month on them, I would pay off the 3% now with the bf. Then Sears (because the penalty is worse if you can't pay), then Cap1, you would be done in 3 months. I know a DR fan would say to go the opposite order, but I don't see any point in paying off a 0% card while you are paying interest somewhere else.