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Personal Finances / Credit Cards and Consumer Debt
|Subject: Re: our debt - any suggestions?||Date: 7/31/2002 2:55 PM|
|Author: reverbbrad||Number: 135141 of 309297|
Although more expensive, it might be worth doing it that way for some people if they need the psychological boost of completely paying off a card.
There may also be other practical considerations. Recently, I had a choice between paying off my remaining car loan (4.9 apy) or a portion of my credit card debt (at 7%).
I ended up going with the car loan because a) it freed up more cash than the same payment to my cc would have and b) in a worst case scenario, if I couldn't make my car payment, it is a lot easier for them to come take it than it would be for a credit card to come after me.
Both my wife and I have been laid off a couple times recently (we are in the tech field, and were with companies that died), so I tend to think 'worst-case' a little more than most. If I got laid off again, my bare minimum monthly expense was reduced substantially, and I could count on the car being there.
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