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I currently have about 2,000 in CC debt at 8% or less. Meanwhile I also have about 3,000 in an e-fund at 1.95%. Right now $400 or more per month goes to the CCs per month (in addition to some previous cashing out of savings to buy it down a bit.) My CCinterest-aversion instinct tells me to pay off the CC with savings, But although my job is quite secure I am a bit uneasy about that drastic of a reduction in my e-fund. (The e-fund is also funded in increments of about 400/month.) The financial-stratego side of my personality says that it would be a good character building exercise to pay this of over time as I can afford to out of current income.

This is somewhat analogous to learning to juggle (many a career has been stunted by day jobs). When learning to juggle many beginners tend to get their juggling pattern going and then find the balls -- which they controlled a the onset -- to get further and further away from their body until they are out of reach and drop to the ground. There are two common approaches to correct this tendancy to overextend.

The first approach is to set rigid limits. For the juggler this means to juggle while standing facing a wall. Your lack of control causes you to bounce the balls off of the wall and over time if you choose to learn from your mistakes you will learn not to overextend yourself.

The second approach is to walk backwards while juggling. This is my preferred method for teaching new jugglers control. The rearward motion forces you to think about where you will be in the future and planning each toss so the ball lands exactly where you plan to be when the ball lands. This also gives you more distance from the wall, which means that should you even loose control you have more time to recover before hitting it.

A third scenario features a begining juggler who starts to lean forward to catch slightly out of range throws, but the off-balance position causes the next throw to overextend them a bit more and they step forward once, then twice, and before long they are running, which seems fine until they throw far enough away that they can't keep up or they run into an unforseen object (say a park grill or firehydrant).

Anyhow, I feel I need to back off on my spending so I can afford to pay more quckly on the debt. I hope this will not only eliminate the debt burden but also teach more controlled spending, rather than just eliminating the debt and assuming and hoping I learned my lesson.

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