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Debt in review

August 10th, 2007 at 08:10 am

Ok so we've fallen off the wagon sort of. I haven't been that diligent about paying towards the cc. BUT it is down from beginning balance of $11,000 to 7800. So, not too bad, I guess. My husband and I have decided once that cc is paid off we will start looking for a house to buy. Currently we are renting...and I hate it.
So, now my goal is to get that 7800 paid off as quickly as possible. Any extra money I am receiving I am putting towards that debt.

Question for y'all- We have a savings acct that has about 6000 in it...we use it as an emergency fund also. If you were me, would you take about 1000 from the savings account and put it towards the CC or would you just keep paying on the cc monthly?

CC interest rate is 0% until September 07
Current interest rate on the savings acct is 5.5% Thoughts?

7 Responses to “Debt in review”

  1. Stein Says:

    No, I would take $5,000 out of it and apply it towards debt. We are on the Dave Ramsey plan. Keep in mind this is only good advice if you follow the other parts of the plan, namely not borrowing any more money and living on less than you make through a tight budget.

  2. amberbamber Says:

    Then we would only have $1000 in an EF and that is not enough to cover any major expenses, ya know?

  3. jdedit2001 Says:

    I think you are right in wanting more of an emergency fund than $1,000. If I were you, I'd pay $1000 or 1500 toward the credit card. I think that would still give you a comfortable cushion for emergencies. Just my opinion.

  4. gruntina Says:

    I would keep the emergency fund because you have family to worry about beside yourself. Otherwise if you were single with no children, I would probably take the risk to put most of the EF towards your debts. If you feel like your not risking too much with $1000 then go for it as it will expediate your debts pay off.

  5. Ima saver Says:

    I would keep the emergency fund and throw all extra money at your debt!!

  6. LuckyRobin Says:

    I think I'd split it in half. Send $3000 towards debt and keep $3000 in reserve. $3000 should cover something pretty major, and the applying $3000 to debt would drop you down to $4,800. Once the balance is under $5000 you could probably open a new credit card with a lower introductory interest rate, and then really start to slam money on it that wouldn't get eaten up in the interest so much.

  7. Amber Says:

    I think I would keep bout $2000 in the EF and the rest towards the cc, what I found that when I paid off the cc I had more money to play with and was able to up my savings more quickly....good luck

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