Author Topic: Savings vs Credit card debt....help  (Read 1730 times)

nicki8403

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Savings vs Credit card debt....help
« on: July 29, 2015, 05:03:51 PM »
I just recently came across this blog and have been doing a lot of reading. I currently have $2,000 in my savings account but $3,400 in credit card debt. I know that I should probably put the money in savings towards my debt but I am afraid to lose that "safety net" What should I do? Thanks for your help!!
« Last Edit: July 29, 2015, 05:11:55 PM by nicki8403 »

Mother Fussbudget

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Re: Savings vs Credit card debt....help
« Reply #1 on: July 29, 2015, 05:20:50 PM »
You have unlimited options. 

Most here would say use the $2,000 to pay down the credit card debt.  Then use the borrowing power of the credit card as your Emergency Fund while you work to pay down the remaining debt, and save additional $$ toward financial independence. 

BUT it doesn't have to be a black-and-white answer... You *could* use $1,000 to pay down CC debt this month, and once you see how the $1,000 payment impacts your monthly budget (if at all), you *could* choose to pay down another $1,000 next month.  OR NOT!  YOU control your savings.  While a credit card balance controls YOU.

nicki8403

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Re: Savings vs Credit card debt....help
« Reply #2 on: July 29, 2015, 05:34:24 PM »
Thanks for your reply!

I did think about putting maybe half of my savings towards the credit card.... we are currently working to pay it off completely however I thought that with that extra money sitting there perhaps some of it (or all) should go to help get rid of that debt because it has been a black cloud over my head for so long! you are right....the credit card debt does control me! yuck!