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URL:  http://boards.fool.com/i-agree-with-xraymd-if-your-snowball-is-2300-a-23595536.aspx

Subject:  Re: Should I pay off a cc with my ING fund? Date:  1/23/2006  11:19 AM
Author:  llambe Number:  219087 of 308688

I agree with xraymd. If your snowball is 2300 a month and you're planning on paying off the MBNA card by May, then I'd pay out of the Ing account and then put the money that would have gone to MBNA to Ing for the same time frame. You're just changing who you're paying after all. And it appears you don't actually need the money in the Ing account until a few months later which gives you a little leeway.

However, if your snowball is variable depending on the month's expenses (ie. what you have left over comes to 2300 this month but might not next month) then I wouldn't do this.

Also I'm not sure that this method really pays the Roth, really it just recharges the Ing account for the expected expenses. However, it is worth considering taking away another 2 months of snowball (if it's 2300) in order to fund the Roth as well. This puts you a little closer to the line for the other expenses coming up though. To me this is more of a comfort level - would you rather fund the Roth or pay off the credit cards? Also it's possible to partially fund the Roth, so you could decide your comfort level (maybe you're only willing to take 1 month of snowball) and only fund to that amount.

Lael

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