UnThreaded | Threaded | Whole Thread (61) | Ignore Thread Prev | Next
Author: maudibe Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 308882  
Subject: Re: Saving vs. Paying credit card debt Date: 4/19/1997 2:55 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
On Wed, 16 Apr 97 08:03:35 -0600, y wrote:
<<

On Wed, 09 Apr 97 17:43:01 -0600, WorkingOnIt wrote:

<<



Hi all,







I've seen articles that recommend having 3-6 months' worth of living expenses saved in cash. But what if I have a large credit card debt at 12% interest? Right now, I've got about 1.75 months of living expenses saved up, earning 4%. It would take me another year to get to 3 months' worth.







If I left the savings intact, I could pay off the CCs in 33 months. If I kept, oh, $1000 or something for quick cash emergencies and applied the rest of the savings toward the CC debt right now, I would be paid off in 27 mths, and would save about $1100 in interest. In this case, were a serious emergency to occur, I could always get the cash back off of the credit cards.







Any thoughts or experiences here?







Thanks.







* I am 'WorkingOnIt' :-)*

****I once had a college accounting professor state that credit card debt was the DEBT DEVIL--worse than all other kinds. He went on to ask "What use is a savings account for emergencies if you have credit card debt?" His point was that in an emergency, the most important asset is GOOD CREDIT. His advice was to take cash and pay off as much debt as one was comfortable with paying at one time. The sooner you are debt free, the sooner the money you make stays in your pocket.

Maudibe


>>

>>
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (61) | 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.
Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
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.
Post of the Day:
Macro Economics

Looking at Currency Ratios
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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