thouse Posted October 2, 2008 Share Posted October 2, 2008 I have about 6 thousand dollars in credit card debt. I transferred two of it to a 0% credit card, so I have 4000 on the other one. I have 4000 in savings, but here is my question? I want to try and pay this all off and never run up credit card debt again, but my dilemma is I work for a healthcare company and everyone knows how bad the economy is so I am torn aboout what I should do. Should I just save every penny I have or should I go ahead with my goal of paying this down quickly. I am a single mother and it's just me and my son so I don't want to make the wrong decision here and then end up being laid off. Link to comment Share on other sites More sharing options...
avman Posted October 2, 2008 Share Posted October 2, 2008 For your own protection, you should have at least 3 months of expenses sitting in your savings account. 6 months is even better but 3 is the minimum. So examine your monthly needs and compare that to the $4,000 you have in savings. If after 3 months of savings you have money left from the $4,000 you should pay down your debt. If the $4,000 doesn't cover 3 months of expenses then don't deplete it. Link to comment Share on other sites More sharing options...
sidehop Posted October 2, 2008 Share Posted October 2, 2008 They say it's good to have savings to cover expenses for at least three months. With 0% interest, I wouldn't worry too much although you can always pay it off and have a zero balance which looks great on your credit score and of course in an emergency you can use the card. Link to comment Share on other sites More sharing options...
Perfection Posted October 2, 2008 Share Posted October 2, 2008 For your own protection, you should have at least 3 months of expenses sitting in your savings account. 6 months is even better but 3 is the minimum. So examine your monthly needs and compare that to the $4,000 you have in savings. If after 3 months of savings you have money left from the $4,000 you should pay down your debt. If the $4,000 doesn't cover 3 months of expenses then don't deplete it. brilliant advice. i agree 100% with this post. paying off debt should be your primary/sole target right now, but not at the expense of incurring more debt in case anything does happen. Link to comment Share on other sites More sharing options...
McLovin oo7 Posted October 2, 2008 Share Posted October 2, 2008 For your own protection, you should have at least 3 months of expenses sitting in your savings account. 6 months is even better but 3 is the minimum. So examine your monthly needs and compare that to the $4,000 you have in savings. If after 3 months of savings you have money left from the $4,000 you should pay down your debt. If the $4,000 doesn't cover 3 months of expenses then don't deplete it. Second that. Also review your expenses if you could squeeze a bit. Link to comment Share on other sites More sharing options...
glegend Posted October 2, 2008 Share Posted October 2, 2008 If you let it accumulate then your pretty much going to be paying off interest. The best thing to do is try to pay off the minimum payment required for the month plus a little extra. For example, my VISA bill is $202 for the period of August-September and all I have to pay is a minimum of $10. If I didn't have the $202 pay but I had more then $10 then I would pay say $15. Why not try doing that. If you can get more of your debt onto the 0% credit card then go for it. My other recommendation is to pay maybe $500-$1000 on your credit card that has $4000 on it if you cannot afford to loose that $4000 that you have in your savings. Link to comment Share on other sites More sharing options...
fragmint Posted October 3, 2008 Share Posted October 3, 2008 i would just leave the savings and cut back on spending , trying to put most of your paychecks from now on into paying off the 4k. ..this is going to be hard with the holidays coming up lol good luck =) Link to comment Share on other sites More sharing options...
COtuner Posted October 4, 2008 Share Posted October 4, 2008 My example: I just paid off about the same size balance in 6 months by diverting other cash flow towards that one. Cut out what you don't need for a little while and just funnel cash at the debt. It goes quickly when you are paying against principal. I have no other credit card debt - and only take on debt that I have a fixed plan in place to pay it off (not based on minimums but on the maximum I can afford each month). And I don't cheat on the plan... never justify a reason to stray from your plan unless it's a health emergency. Keeps all but emergencies from hurting you. Link to comment Share on other sites More sharing options...
fragmint Posted October 4, 2008 Share Posted October 4, 2008 link removed to help you plan a bit Link to comment Share on other sites More sharing options...
Mutley Posted October 4, 2008 Share Posted October 4, 2008 Can you get a rock bottom rate on the remain $4000 as well? Even 1.9 to 4.9? Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.