What would you do?

FrugalMomof3 · 09-13-2007, 08:34 PM

Ok here's a question for you all that I need help with..

I have a CC balance (yes I do, it was from the car we purchased) and the balance is $2,190.29, (I just put $310 on it last week). Right now I have another $500 so my question is this....

Would you take the entire $500 and put it towards the credit card OR Put $400 towards it and put $100 in savings?

I opt for the 2nd option but wanted your opinions on this

TIA!

Michelle68 · 09-13-2007, 08:51 PM

Tracy, I think option 2 sounds good, especially if you have not fully funded your EF yet.

--Michelle

mikandmari · 09-13-2007, 08:52 PM

I guess it would depend on how much you have in savings already, and what the interest rate is on the CC. JMO.

Of course, if you put it in savings, you can always change your mind and withdraw it to pay toward the CC!

FrugalMomof3 · 09-13-2007, 09:59 PM

The apr is like 18% BUT in two more weeks I will be putting an additional $800 on it as well and then two weeks after that another $800. I also just sold something in cheapcycle in my area so I am ok with putting the full $500 on the CC or atleast $450 thus putting the other $50 into savings.

Right now counting in $100 extra in savings I will have $750, so while it's not alot it's building up, that's what counts.

AND I just started a little over a month ago building it back up so $700 in less than a month isn't bad.

FrugalMomof3 · 09-13-2007, 10:00 PM

I forgot to mention that I would have been able to put an additional $300 on the car or in savings but gotta fill up the oil tank, shoot that's costing me $325 from my pocket and I have a $53.32 credit with them so a little over $375 for 150 gallons of oil... yikes!

PrairieRose · 09-14-2007, 09:01 AM

I'd save a little of it like you're leaning towards. Either way it's money well spent and not wasted

bumplett · 09-14-2007, 09:20 AM

hmmm.... guess I'm the odd one out on this one ~ I'd put the whole $500 towards the cc.

Laurie in Bradenton · 09-14-2007, 09:38 AM

I'd put it towards the cc since it sounds like your EF is pretty good at this point. Not to mention 18% is still 18% regardless of balance, yuck!

Laurie in Bradenton

AnnK · 09-14-2007, 09:43 AM

I would save some of it, you might need it in the future "wink , wink" I think you know why I would say that.

LexTysMommy · 09-14-2007, 10:18 AM

Put all toward CC. It has interest! Thats my thought on it tho! Good luck!

mea772 · 09-14-2007, 11:21 AM

I would say put most of it towards the cc but put a little bit away.

But then again...look where my way of thinking as gotten me

LOL

Princess Lala · 09-14-2007, 11:25 AM

I'd probably tuck some back into savings... what if you put it all on the car & then had a NEED to dip into the EF??

Cricketlegs · 09-14-2007, 12:06 PM

My honest opinion is that you should treat saing for your EF as importantly as paying down debt.

Sure put MORE toward debt(we do $400 on the card and $300 in the EF every month)

The best bet is to find amounts you are comfortable with that you can commit to EVERY month and any extra is icing on the cake so to speak.

Me, I would put what you have on PLAN B.

Sure it would help with interest and just making it go away sooner but how much interest and how much sooner.

Sometimes money in the bank is what lets you SLEEP at night and gets rid of that knot in your stomach that you walk around with!

YOu can NEVER go wrong by paying yourself FIRST!

Cricketlegs · 09-14-2007, 12:06 PM

gosh I am the queen of typos today!

sorry!

Cricketlegs · 09-14-2007, 12:16 PM

Quote:

Originally Posted by Princess Lala

I'd probably tuck some back into savings... what if you put it all on the car & then had a NEED to dip into the EF??

AMEN sister!

It can and does happen and if you have budgeted in timly car payments then no matter what that car will be paid off on schedule.

It also sounds like you are hitting that debt hard(go for you!

) so save some towards your EF goal!

I set mini goals of $1000 each--it takes me 3 months to get there and then an additional payday($300) a month.

If I am paying off my debt and hitting it hard. I have short and long term goals in place and are following them no matter what, I stay out of the ef and I budget and stick to it then there is no reason to EVER STOP adding to your EF.

Don't get to $500 and say DONE. A new transmission cost $1700 etc.....Always have a mini goal, set a firm long goal(mine is $25,000 or 6 months salary...dang that will take a while!)but never stop.

Remember it is YOUR money and any money you save is just added retirement.

I will stop harping on the EF and I know people are so snowed under in debt they just think ..I have to pay this, have to pay this , have to pay this...but the EF is JUST as important for the bad times to stop MORE bad times from coming.

Shutting up now..really....