How Would YOU Spend the $$?

**Holding Pattern** · 09-23-2009, 05:34 PM

We have about $2,000 being returned from a banking error (the bank's error we've been fighting for 13 mo now) and figured we'd see what y'all had to say.

One CC @ $5k

ATV loan is inconsequential since there is no benefit to paying it off early and the payment is very low.

EF is @ 1k but I would like it to be higher.

If we put the $$ towards the cc it will help. If we split it between the EF & cc then... it's all to toss up. Just want to make the best use of the $$ as possible. thanks for your input.

**craftypam** · 09-23-2009, 06:09 PM

I would say put it toward the cc unless you think your income is in
danger of falling. If there is that possibility then I would put some in
ef. I have always felt why put money in savings with .25% interest
and not payoff a credit card with much, much higher interest.

**frugalfranny** · 09-23-2009, 06:16 PM

I would agree with CP.......do the CC since I am sure it is higher int.

I just want to say CONGRATULATIONS for finding a BANK ERROR and making them correct it!!!!!! Took them long enough......are you getting interest on the money while they were jacking you around???

YOU GO HOLDING PATTERN!!!!!!!!!!

**Thevail** · 09-23-2009, 08:57 PM

I vote for paying off the CC as much as possible.

Think of it this way, whatever the interest on the CC is.. also the time to pay off.

You'll be able to "make" that amount of interest by paying off that lump sum.

**missmanny** · 09-23-2009, 09:22 PM

If it were me I would put it on the CC or would split it between the two.

I know that it is hard to not keep it and to just put it towards the debt but I would hope that I would take a big gulp and then just do it.

I'm sure you'll figure out the very bext way to utalise the extra money.

**Nada.Leona** · 09-24-2009, 06:23 AM

Though I'd be selfish and keep a tiny portion to spend on myself and DH. You all are so responsible!

**Karen1** · 09-24-2009, 06:39 AM

Depends on what other savings you have.

If you only have a EF fund, then bank all of it in savings. If you have more savings to rely on and are good wtih backup, then CC

right now money in savings is very important

**Rebookie** · 09-24-2009, 07:59 AM

pay down the debt!!

**Greebo** · 09-24-2009, 09:04 AM

Originally Posted by Holding Pattern

One CC @ $5k

What's the interest costing you per year?

ATV loan is inconsequential since there is no benefit to paying it off early and the payment is very low.

False. A paid for car cannot be repossessed.

Less debt = more security. If the debt isn't being paid for by an asset that covers it, it's not good debt, it's toxic.

Cleanse your budget of toxic money.

**tervsforme** · 09-24-2009, 09:22 AM

I agree with paying down the debt. Although, I would probably pay $1500 toward debt and put $500 in the EF.

**NikoSan999** · 09-24-2009, 09:54 AM

Originally Posted by Greebo

What's the interest costing you per year?

False. A paid for car cannot be repossessed.
Less debt = more security. If the debt isn't being paid for by an asset that covers it, it's not good debt, it's toxic.

Cleanse your budget of toxic money.

No, but a lien CAN be put against it.

Also, while under normal circumstance it cannot be repo-ed, if it were a bankruptcy situation a paid for second vehicle would be one of the first things taken if not bought back out of the bankruptcy. If something is paid off and they take it and you want to keep it you have to buy it from the court.

**Holding Pattern** · 09-24-2009, 10:01 AM

Originally Posted by Greebo

False. A paid for car cannot be repossessed.

Less debt = more security. If the debt isn't being paid for by an asset that covers it, it's not good debt, it's toxic.

Cleanse your budget of toxic money.

You're right, Greebo...I did not say it clearly, I meant no benefit as far as paying less interest or a recalculation of the loan on the ATV. Interest is already calculated for the loan term so early payoff has no benefit in that way.

We assumed 99% going to the cc to chunk it down. Nice to see consensus though. And we will take $25 and go to our favorite Thai place, I am sure. That's my reward for a year of fighting, curry. Thank you again.