Author Topic: Using savings to pay off debt  (Read 1427 times)

Keigan2cool

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Using savings to pay off debt
« on: December 12, 2016, 07:27:56 PM »
Long time follower of MMM but never used the boards so here we go.
Question for all the Money Mustaches should I use my savings to pay off my debt?
Made mistakes with my money because I like new things and I want to undo the damages.
Is it worth it or should I just bite the bullet and pay it off over time?

seattlecyclone

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Re: Using savings to pay off debt
« Reply #1 on: December 12, 2016, 07:39:11 PM »
More details needed. What's the interest rate? Are you thinking of tapping into a retirement account, or just planning to use a regular savings account?

overwhelmed

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Re: Using savings to pay off debt
« Reply #2 on: December 12, 2016, 07:40:43 PM »
Welcome & the first piece of advice I can offer is to fill out a case study.
People need more information before offering any advise about your specific situation. There are just too many variables that are unknown.

http://forum.mrmoneymustache.com/ask-a-mustachian/how-to-write-a-'case-study'-topic/


Proud Foot

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Re: Using savings to pay off debt
« Reply #3 on: December 13, 2016, 11:20:23 AM »
Welcome to the boards.  I will +1 to us needing more information before any advice can be given.  There are many variables which influence the advice and are unknown to us.

  • Amount of debt?
  • Interest rate of debt?
  • Savings - is this invested or savings account?
  • How does the current monthly payment fit within your budget?


Long time follower of MMM but never used the boards so here we go.
Question for all the Money Mustaches should I use my savings to pay off my debt?
Made mistakes with my money because I like new things and I want to undo the damages.
Is it worth it or should I just bite the bullet and pay it off over time?

This is a good start by recognizing how you got into the debt. The next step is also determining how to keep yourself from adding to the debt or going into debt again once this is paid off.