Opinions please

**mommy4ever** · 09-21-2007, 11:13 AM

Ok, I'm debating with myself.

I have savings accounts for my kids in my name. and I'm not sure it's worth ir right now as we have these bills.

Interst they are earning in a year is: $3 for 3 accounts and $5.50 for the last one.

Would it make more sense to jump on the bills harder, take off almost nearly 4 months of payments and save on interest which i smore than $17 a year..lol. Then once the bills are done for next fall, make deposits in the there account with more than $3 and $5.50 they lost in interest??

**nuisance26** · 09-21-2007, 11:28 AM

~I think that depends on how the accounts were funded. If you alone funded them I think it'd be OK to use the money on bills then pay it back into a higher interest account. I wouldn't touch it if it were even partially gifts from relatives. From a finacial standpoint, it makes more sense to pay off a higher interest debt with low interest earning savings.~

**lisettelovebug** · 09-21-2007, 11:35 AM

I'd say use it. Get those bills paid off. Then next fall start really saving. Do the kids have 529s? These would be much better to put the money into if it's for college. You get a tax deduction. OR.. you could open online savings accounts in your name. There are several that have high interest 4.75% Plus. We have our EF in Capital One savings account because it has an ATM card so we can get to the money in case of an emergency. Then we have one that we started for saving for down payment on house and that is through ING.(they also gave us $25 for opening account) For one month we made more in interest than we did in a year through our local credit union (1%).

**mommy4ever** · 09-21-2007, 11:35 AM

There is no "gift" money in there. I just looked at it, and it could potentially take 6 months off!!! If applied to the right account. Ironically not the lowest ones. But it could do so much and just the savings on interest. And it would be easy to deposit money back in once all the bills are caught up.

**mommy4ever** · 09-21-2007, 11:39 AM

We're in Canada I'm not sure what teh 529 is..lol. But if we can get all that stuff paid off, the kids will have college funds ready for them. We don't pay 100%, I don't believe ina free ride.

I think I will do this today. I think it is the smarter way to do it

I'm just going to make a note as to how much was transferred and then replenish it asap. It doens't make sense to have so little earnings when it would be best on the debt overall.

**mommy4ever** · 09-21-2007, 01:44 PM

I did it!!! And I feel SOOOO good!! I transferred the money out and with todays pay, put $4000 on debt!! I have grocery money, spending money, everything is now current.

I looked at the numbers and checked it out. This puts us ahead of schedule

I sure hope we can keep it up.

**sdrjeolsen** · 09-21-2007, 03:11 PM

yay, I think you made a good choice!

**amecoy75002** · 09-21-2007, 04:03 PM

WTG

**latierra84** · 09-21-2007, 04:56 PM

WOW! nice job

**FrugalMomof3** · 09-21-2007, 06:22 PM

I think you made a good choice... once all the bills are gone it would be so much easier to fund those accounts back up the way they were without worrying. CONGRATS!