(Closed) What would you do

posted 6 years ago in Money
  • poll: What would you do?
    Pay off the debts for sure!! : (24 votes)
    35 %
    No way, its safer to have cash saved for emergencies : (21 votes)
    30 %
    other (explain in comments) : (24 votes)
    35 %
  • Post # 3
    Hostess
    16213 posts
    Honey Beekeeper

    I wouldn’t deplete my emergency fund to pay off debt. You just never know when you’re going to need that emergency fund for something urgent/immediate.

    You could always pay more than your minimum payment to make the debt go away more quickly, but paying it off in full now isn’t worth losing the security you have in an emergency fund.

    Post # 4
    Member
    3374 posts
    Sugar bee
    • Wedding: October 2011

    I would pay off the majority of debt and save a little in cash still (like 2k in your example).

    Post # 5
    Member
    2116 posts
    Buzzing bee
    • Wedding: October 2013

    I would pay off 9k in debt and keep 1k as an emergency fund. I think Dave Ramsay suggests a 1k emergency fund.

    Post # 7
    Member
    4951 posts
    Honey bee
    • Wedding: July 2012

    At the very least, pay half of the debt and save half for emergencies. I’d be inclined to pay $8000 of the debt and save $2000 for emergencies. That way you can breathe easier by not having the weight of that $8000 on your shoulders.

    Post # 9
    Member
    9659 posts
    Buzzing Beekeeper
    • Wedding: April 2019

    pay off some of the debt, and keep some saved for emergencies

    Post # 10
    Member
    1498 posts
    Bumble bee
    • Wedding: April 2014

    I’m not financial advisor by any means so I’m not sure if I would do the “right” thing. However, I think I would keep some cash and pay off some debt.

    How much would depend on how long it takes me to save up. Using your example… if I can save back up to $10k in a reasonable amount of time, then I’d probably put $6k towards debt and hold on $3 just in case I need some cash quickly.

    Post # 12
    Member
    1623 posts
    Bumble bee
    • Wedding: November 2012

    I would pay off around $5k-$8k (depending on apr’s/interest) and still keep a nice chunk for actual emergencies.  But if interest is high, I’d try to cut that debt amount down as much as possible asap.

    Post # 13
    Member
    1137 posts
    Bumble bee
    • Wedding: September 2010

    It depends on what kind of debt I have, and what the interest rates are on the debt I’m holding and the return I am getting on the investments in my emergency fund.

    Example: If I had credit card debt with 17% interest and I was only making 6% on my investments, I would pay off the debt.

    If I had a mortgage with a 4% interest rate (which is tax deductible) and I was earning 6% on my investments, I would keep that money invested and keep paying my mortgage monthly.

    Post # 14
    Hostess
    16213 posts
    Honey Beekeeper

    @Choosgirl:  Yeah I’ve usually heard six to eight months. And for me, that’s definitely more than a couple thousand!

    Post # 15
    Member
    9732 posts
    Buzzing Beekeeper
    • Wedding: September 2012

    @Gemstone:   Agreed!

    Post # 16
    Member
    13074 posts
    Honey Beekeeper
    • Wedding: November 1999

    I would make sure I had 6 months of complete living expenses, and put the rest towards debts. 

    The topic ‘What would you do’ is closed to new replies.

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