No. of Recommendations: 0
nolalou -

First of all, great job on your efforts to save and invest. As to the credit debt - there are a few things you need to consider. What interest rate are you paying on your credit cards? If you can access your "non-retirement" mutual funds to pay off the debt without a pentalty, this may be a good idea. HOWEVER, you absolutely do not want to use invested money to pay off debt if you are just going to turn around and run that debt back up.

Your suggestion to pay off the debt on the cards and then cut up all but one is very wise. Remember though, once you pay off the debt, celebrate your "debt-free" status and don't let yourself add up that credit card debt again. If you choose to pay off the card debt, perhaps you can use the money you would normally be paying towards the cards to put away in an emergency fund for things you have previously purchased on the credit card. This way you don't need to use the card except in cases of a TRUE emergency.

Just my 2 cents. And welcome to the FOOLS - watch this sight often and you'll learn a lot as I have.

Spyguy1022
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