UnThreaded | Threaded | Whole Thread (11) | Ignore Thread Prev | Next
Author: vakoala Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 308782  
Subject: Re: Pay them off? Date: 4/16/2001 12:35 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 1
I have a steady job with good income, and once I've taken a hard look at my finances after purchasing this home, will be putting money into a 401. At the moment, I have just under $3,000.00 in credit card debt left - I was going to have that paid off in six months. Should I just pay it off now and get that interest rate out of my life? Or should I invest half in a 401?

If your 401k has a open season why not start at whatever your company matches until the rest of the debt is paid off and you have enough in your e-fund to feel comfortable.

After struggling so hard to get this house, of course I feel like getting a new couch and refrigerator (believe me, these need to be replaced, it's not just a matter of wanting spiffy new stuff), but I won't do that until the credit cards are paid off and I can pay for the items in cash (or know that I can pay them off on a card within two months).

If you pay off the credit cards now and an unforseen emergency comes up (the need for a new fridge for instance becomes a necessity as the old one blew up) you can always use a card and pay it off until you get enough in your E-fund to feel comfortable. If nothing happens then your cards are paid off and you have managed to come up with the E-fund. The rule of thumb I have heard for savings towards home repairs is you need to save 1% of the value of the house each year towards repairs. IE your house is worth 100,000. Each year you need to budget 1000 for repairs and roll over what you haven't used and add 1000 to that the next year.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (11) | Ignore Thread Prev | Next

Announcements

TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Berkshire Hathaway

IBM: Is Buffett Wrong, or Brilliant?
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 "#1 Media Company to Work For" (BusinessInsider 2011)! 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