No. of Recommendations: 0
Hi all,
To answer your question, workingonit, you'll need to do multiple things to address they credit card pay-down and the savings dilemna. The late Joe Dominguez, co-author of "Your Money or Your Life", advocated frugality, analyzing every single dollar that you earn, and every single that you spend. The novel idea is, whatever you don't spend, you get to save! Make a game out of it, and when you have enough savings you'll have your "life" back, or the freedom to pursue your life, not as a debt slave tied to a job you dislike! Constant frugal spending and discovering new personal revenue streams will lead you to discover your solution to debt eradication. According to Dominguez, your regular debt pay-down is the SAME as savings. It's true, add up all your money and deduct your debt and that is what you have! Each month, you will be saving and you will be increasing your overall cash balance. So for example if you have $20,000 in a bank account and $30,000 on credit cards, you don't really have $20,000 now do you? Think about it, you are still $10,000 in the hole. Dominguez would have said to pay down whatever is most expensive first AND, remember that paying down debt IS saving! Logic follows that if you have cash sitting around when you really owe it to someone,you are just mindlessly paying interest to park their money in your bank account. You have to pay it eventually so you may as well just pay all back today that is the cheapest way. The remainer of the balance you can chip away weekly, throwing a little bit whenever you have the cash. For the time being until you are out of the hole and have built up 6 months of living expenses, you must rely on your credit cards for emergency funds, and that is the cold hard fact which many os us have gotten ourselves in to. I, too, am working on it! Almost there!
Print the post  

Announcements

UGC Disclosure Notice Regarding Credit Card Posts
Community board discussions about credit cards are not provided or commissioned by banks who may have advertising relationships with The Motley Fool. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement