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Pay off the credit card. If you run into an "emergency" (car repairs, food, rent, etc.) then use the credit card to cover those expenses.
If you only pay off $4,000 today, then 2 months later you need the $1,000, you have accrued 2 months worth of interest on your credit card. If you pay off the whole thing today, and need $1000 two months later, then you will have no accrued interest.
Seems to me the best course of action would be to pay off the whole debt and keep the credit card for emergencies only!!!!!!!
The best suggestion I can give you is to spend about $15 on Dave Ramsey's Total Money Makeover and then live financially by what he preaches. The book will answer your question.
If you have $5,000 in the bank, $5,000 in credit card debt and didn't put a dime in your IRA yet for 2008, what would you do? Suze Orman is always saying to pay off that cc debt but I'm thinking it makes more sense to put it in the IRA. On the other hand maybe hold on to it because income is an issue right now and might need it for emergency fund. Opinions would be great with reasons why, thanks.
I see a lot of people here saying pay off the credit card, but everyone needs a cash reserve. Double or triple up on the CC payments and you will pay it faster.
Say if your min payment is 75 dollars pay 150 dollars and keep paying that amount even when the min payment goes down.
I just paid off 7,000 and it went down real fast that way.
After it's paid off keep paying yourself...
Last edited by Houston3; 01-16-2009 at 05:08 PM..
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