No. of Recommendations: 1
I suspect that the interest she pays on the credit card is much higher than the interest she earns from the savings. From a strictly financial point-of-view, it makes sense to pay off the credit card now. However, unless she breaks her habit of running up the credit card, she may find herself in worse shape with no savings and even higher credit card balances. So, no matter which way she chooses, the breaking the credit card habit is really important.
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