Post # 1
Ok. So I have a tiny bit of credit card debt. But besides that and my mortgage I literally have no other debt. I paid off my car and student loan a couple years ago. Yay! 🙂
Right now I have about $3000 in various credit card debt and 0% interest furniture credit lines. I keep around 20K in checking. I figured out if I pay it all off in one fell swoop I’ll be able to save $400 a month (which would have gone to my credit cards) and bring my balance back to it’s original level by April or May. After which I’ll put more in my retirement and I’ll be able to continue saving $300 a month.
I have huge money issues. Like, I have miser moments. I’ve been known to eat ramen for weeks because it’s cheap. Yeah. I’m crazy. I’m working on it. 🙂
Which is why I want your opinions. I have a large enough emergency fund and once I paid this off I’d be totally debt free (except for the mortgage). This is a good idea right? Thoughts? Thanks!
Post # 3
If I were you I would pay it off now to save on the interest.
Post # 4
Pay now! The money you are paying in interest is a total waste!!!
Post # 5
Pay off the CC based on interest rate first (highest to lowest). Then divide the min payments within the time frame of your furniture loan and have that paid off before (if?) the interest rate goes up.
Are those numbers right, you maintaint $20,000 in your checking account? How do you calculate your emergency fund needs?
Post # 6
If your credit cards have an interest rate (and of course they do) absolutely pay that off.
Post # 7
That is not a lot of debt compared to your savings. Definitely pay it off in this case so you don’t incur any more interest charges. Then just make a purchase or two each month and pay it in full to keep your credit rating up. You’re a smart, lucky girl:)
Post # 8
As long as you have your emergency funds in a good place I say pay off debt…..
BUT that’s only if you’re going to stop using your CC… cut them up or freeze them. Otherwise all you’re doing is paying them off to throw your money away.
I personally would pay them off and then possibly keep the one with the highest limit frozen in my freezer… just incase I ever needed it (which since you have a good emergency fund should be never)
Congrats to already having paid off your other debt! I hope to be able to tackle mine head on in the next year!!!!
Post # 9
You already have an emergency fund so I’d definitely say pay it off now. After it’s paid off you can go back to being a miser. If it helps you can think of it as saving money by paying it off now because you’ll be paying less in interest.
Post # 10
@atalante: Yeah. I keep $20,000 in my checking. I want a minimum of 3 months take home pay readily available. Which is a little over half of what is already in there. I’ll still be above that limit after paying off my debt.
I think it’s just the one fell swoop thing that makes me nervous. But I really have no reason to be logically since it won’t break me. I guess I just need to make sure that my thinking is right and it’s silly not to just wipe my slate clean.
Post # 11
@claireos: Wow. I so want a big person job so I can have that kind of safety net (I’m a student). Just think of that awesome “I paid it off” feeling and focus on that. 😀
Post # 12
Always pay off debt before you save. And, if the 20K is an emergency fund, you might as well put it in an interest yielding CD. It will still be there if you need it, but at least you’ll be earning interest on it (assuming you don’t already).
Post # 13
@claireos: Kill the credit card debt! Increasing savings money will make you happier than paying credit cards monthly. =)
Post # 14
Definitely pay it off. If I were in your postion, it wouldn’t even be a question.
Post # 15
Because of the interest you’re paying on your debt alone, I say pay it off