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URL:  http://boards.fool.com/pwyles-wrote-ltltwhich-should-have-priority-10072118.aspx

Subject:  Re: Paying off the balance Date:  1/1/1998  10:47 PM
Author:  shess Number:  372 of 308858

pwyles wrote:
<<Which should have priority retireing [credit card] debt or building the cash reserve for the next unplaned expense>>

The big thing here is that if you have low balances on your plastic, you probably don't _need_ a cash reserve. [I'd still _want_ one, though.] You can most likely charge emergency expenses, and meanwhile you're getting a better return from paying things down than having the money around.

Note that I'm thinking in 3-6 months cash reserve terms, here. If your cash reserve is under a month's worth, then that's clearly more important. Some things, like rent, just can't be charged, and you definitely don't want to be using those "convenience" checks to get it on the plastic.

Later,
shess

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