I want to cry.

**SixxOfDiamonds** · 12-11-2008, 08:24 PM

So this month and last we went a bit overboard and purchased things on our credit card. I have to 'confess' this to somebody, so here goes...

I'm torn as to what to do, so I'm asking all of you. DH is currently away and during the few days he was home, helped rack up the debt. So while I would typically ask him, I can't. Here's how it goes...

We have a bit under $2000 on our credit card. $300 of that was used to buy a Wii and shipping for DH's parents (they are paying us back, they couldn't find one where they live so we picked it up out here). I purchased DH a new iPod for our anniversary. He listens to it about 6 hours every day, so to us it's worth it. His last one died after being a year old and living through Iraq. I had a $25 off coupon, but still spent $225 on it. $130 was used to buy a tripod for my camera (which will have paid itself off in one or two photo sessions.) The rest was small, random purchases and Christmas gifts. The card has a 0% APR due to our good credit scores.

I'm unsure whether to pay the card off all in one go this month or to just pay around $500 this month and the rest of next month (when I'll be working again, adding to our income.)

We have a bit over $8,000 in our savings account/EF at the moment and $1,000 cash-in-hand. There is $400 in our baby/child fund and $500 in checking to last us until the 15th. All of our bills are paid for the month of December, but we are taking a trip to visit family for Christmas (we plan to spend around $300 total for the trip) The minimum payment isn't due until mid-January but I feel horrible and guilty that we even HAVE it. We do have other investments we could cash in if we had a huge emergency (if we use part of our savings/EF to pay it) such as mutual funds and CDs, but those are kind of out-of-sight out-of-mind monies.

Should I just pay it out of our savings/EF? Use our baby/child fund and half of the cash-in-hand and part of the next paycheck to pay it off? I feel so reckless, and guilty that I even have to ask.

In good news, I just started reading Total Money Makeover today and it has really spurred me into action.

Thanks for all your help!

**AmyBoz** · 12-11-2008, 08:29 PM

Personally, I'd pay it off. It sounds like you are in pretty good shape, in general, and I think that getting rid of this debt would be the best thing for you. It's JMO, but that's what I'd do. Good luck!

**Greebo** · 12-11-2008, 08:33 PM

Pay it off. You'll lose way more in interest payments even over a few months than you would gain with the same $$ in savings.

**SixxOfDiamonds** · 12-11-2008, 08:37 PM

Originally Posted by Greebo

Pay it off. You'll lose way more in interest payments even over a few months than you would gain with the same $$ in savings.

The card has no interest until the end of 2009, that's why I'm torn on it.

**zakity** · 12-11-2008, 08:56 PM

So, if you can use their dime for another few weeks, then do it. Your cash sitting in your account gaining interest is gaining you cash, however small it may be.

**pbobber** · 12-11-2008, 09:32 PM

I would pay it off. It sounds to me that your peace of mind will be worth the small amount that you will lose in savings interest.

**Denvergirlie** · 12-11-2008, 10:07 PM

pay it off

I do have a question thou, why would you put all this stuff on a credit card when you could have just paid cash from your savings?

**SixxOfDiamonds** · 12-11-2008, 10:41 PM

Originally Posted by Denvergirlie

pay it off

I do have a question thou, why would you put all this stuff on a credit card when you could have just paid cash from your savings?

That is a good question. A few months back, I got the credit card because it had 0% and then 5.9% after that and in comparison to my old CC (8.9%) that was a good deal. I hadn't yet used it, so I had planned to use it to purchase Christmas presents. That way, the bank was satisfied and I would pay off the $500-$1000 at the end of December. I guess it had been a while since I'd used a credit card and the spend-happy of it all overtook me. For some reason, it was less 'scary' using the card instead of depleting my wallet. Well, at the time it was less scary. Then I checked the balance online and it was even more 'scary' than purchasing with cash would have been. Nonetheless, I learned my lesson and the card remains at home now. I got it for internet purchases or large purchases where a check or cash wouldn't be smart and somehow justified it all with the zero interest.

It had been a good year or so since purchasing anything with a card, and now I remember why I put them away for good.

**Momof3girls** · 12-11-2008, 11:05 PM

Frankly, I would pay it off now. With the economy the way it is and all the uncertainty in the job sector; having it paid will be one less headache later. If you have to learn to adjust to live on less money so be it, but at least you won't have the extra debt on top of it, kwim?

**FrugalMomof3** · 12-11-2008, 11:46 PM

Pay it off right away but wondering why you used it in the first place if you had all that money in the EF?

**SixxOfDiamonds** · 12-11-2008, 11:51 PM

Originally Posted by FrugalMomof3

Pay it off right away but wondering why you used it in the first place if you had all that money in the EF?

As I replied to a previous poster:

Originally Posted by SixxOfDiamonds

That is a good question. A few months back, I got the credit card because it had 0% and then 5.9% after that and in comparison to my old CC (8.9%) that was a good deal. I hadn't yet used it, so I had planned to use it to purchase Christmas presents. That way, the bank was satisfied and I would pay off the $500-$1000 at the end of December. I guess it had been a while since I'd used a credit card and the spend-happy of it all overtook me. For some reason, it was less 'scary' using the card instead of depleting my wallet. Well, at the time it was less scary. Then I checked the balance online and it was even more 'scary' than purchasing with cash would have been. Nonetheless, I learned my lesson and the card remains at home now. I got it for internet purchases or large purchases where a check or cash wouldn't be smart and somehow justified it all with the zero interest.

It had been a good year or so since purchasing anything with a card, and now I remember why I put them away for good.

**SixxOfDiamonds** · 12-12-2008, 03:55 AM

I must state that after reading half of Total Money Makeover tonight, this bill is getting paid off ASAP! Thanks to all those who offered advice.

**Momto2Boyz** · 12-12-2008, 06:59 AM

Good for you on deciding to pay it off! With 0% interest, you could wait and pay if off over the next few months, but with the economy the way it is, it would probably be best if you just pay it off entirely, so it ins't worrying you in the back of your mind!