Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
In addition to what others have said, there is a behavioral factor as well. If you drain your savings to pay the cards off, will you continue doing the same thing that got you into the debt in the first place? If so, you'll end up with a big debt and NO savings.
You have to consider not only the debt itself but what caused you to get into the debt.
Paying off the credit cards will NOT drain my savings.
Paying off the credit cards will NOT drain my savings.
Then take the money out of your savings and pay the cards off in one fell swoop. Why make things complicated? Plus it will cost you less, since you won't be paying any more interest after they're paid off. The longer you take to pay them off, the more interest you're paying to the card companies.
I disagree. Most people can manage credit cards just fine. They are a convenience. They help build your credit score if you handle them correctly.
I disagree. Most people can't handle credit cards. It's one of the reasons credit card debt is such a huge bubble in this country. Most people think of them as extra spending money instead of what they should see them as; a tool to increase your personal wealth.
I would take money from savings to pay off the debt with the largest monthly payment THEN snowball that to the rest of your debt. That way you still have cash reserves for emergencies and also a large amount of monthly money to tackle the other cards. I've used this strategy myself.
This is my plan. I have two credit cards which one is $600 and the other is $2900
I will just focus on saving as much as possible by the end of this year and then will have the smaller card paid off by June or July and then the bigger card cut in half or paid off by December 31st
I paid off all my credit cards except one. My FICO score dropped 14 points! What did I do wrong?
Stop worrying about your FICO. I have only ever had one credit card and always paid it off every month.
I've never had a problem getting a loan (mortgage or car) and the guy at the bank mentioned that the lower FICO is because I had no debt. And my comment was "Well that should be a good thing, not a bad thing". Your credit history shows you had debt and paid it all off. The bank guy did agree with me but said that's the way things are.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
