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Author: bonitajennita Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 308881  
Subject: pay down cc or keep in savings Date: 11/10/2003 2:35 PM
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I accidentally posted this to the wrong board. So here it is. And based on reading the boards I know you are supposed to pay off cc first, but given my situation I thought I'd seek advice. Thanks!

Hi,

I recently moved half way across the country with my boyfriend. Neither of us had jobs, but we'd saved up about $4K. We both have student loans, but we're trying to defer. After about a month I decided to do temp work, but I had to buy a car in order to get there every day (used car, $1100). He's still looking to temp so I'm the only one bringing in money right now. I put most of the moving expenses on my credit card (moving truck, gas, etc) assuming we'd pay it off right away when we found jobs. Since it's taken us longer to find jobs we've used some of the savings (and cc) for living expenses and such. There's only $700 left of the $4K. My credit card bill is now $3600, but I'm sure I can put a huge dent in it once I get a 'real' job and my boyfriend gets a job. Yes, I've stopped using it and only use cash now. My basic question is should we leave that money in savings or make a large payment on my credit card? (I've already made a $500 payment a few weeks back.) Other ideas or advice?
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Author: rah1420 Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 173037 of 308881
Subject: Re: pay down cc or keep in savings Date: 11/10/2003 3:01 PM
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There's only $700 left of the $4K. My credit card bill is now $3600, but I'm sure I can put a huge dent in it once I get a 'real' job and my boyfriend gets a job. Yes, I've stopped using it and only use cash now. My basic question is should we leave that money in savings or make a large payment on my credit card?

If your income is limited at the moment, your primary concern should be to conserve cash. "Once I get a real job" could be months away. Make the minimums on the CC and save as much cash as humanly possible.

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Author: windyelliott Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 173038 of 308881
Subject: Re: pay down cc or keep in savings Date: 11/10/2003 3:07 PM
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I know this may not be helpful, but I get a panic attack just thinking of your situation. Why did you and your boyfriend move halfway across the country if you didn't have jobs? Can you go back home before you run out of money?

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Author: Leviathan Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 173039 of 308881
Subject: Re: pay down cc or keep in savings Date: 11/10/2003 3:24 PM
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I recently moved half way across the country with my boyfriend. Neither of us had jobs, but we'd saved up about $4K. We both have student loans, but we're trying to defer. After about a month I decided to do temp work, but I had to buy a car in order to get there every day (used car, $1100). He's still looking to temp so I'm the only one bringing in money right now. I put most of the moving expenses on my credit card (moving truck, gas, etc) assuming we'd pay it off right away when we found jobs. Since it's taken us longer to find jobs we've used some of the savings (and cc) for living expenses and such. There's only $700 left of the $4K. My credit card bill is now $3600, but I'm sure I can put a huge dent in it once I get a 'real' job and my boyfriend gets a job. Yes, I've stopped using it and only use cash now. My basic question is should we leave that money in savings or make a large payment on my credit card? (I've already made a $500 payment a few weeks back.) Other ideas or advice?

For the time being, leave that money in savings - you'll need it when the next emergency hits.

Leviathan

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Author: agg97 Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 173040 of 308881
Subject: Re: pay down cc or keep in savings Date: 11/10/2003 3:28 PM
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Conserve all cash until you both get "real" jobs. In the big picture, you're only talking about a couple hundred bucks in interest. That's nothing compared to being thrown out on the street because you don't have the cash.

-Agg97

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Author: Windowseat Big funky green star, 20000 posts Top Favorite Fools Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 173041 of 308881
Subject: Re: pay down cc or keep in savings Date: 11/10/2003 3:29 PM
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My basic question is should we leave that money in savings or make a large payment on my credit card? (I've already made a $500 payment a few weeks back.) Other ideas or advice?

As the others have said, you need emergency funds. If you get sick, or are hurt, you won't be bringing in money. If the car needs repairs you'll have to have money to pay for that. And if you need medical care you really will need every penny.

Yes, paying off the credit cards is important, but not to the point of really destroying yourself.

Are there malls near you? A lot of the stores are beginning to hire for the Christmas season. Maybe your boyfriend could find some work there? Even if it's two part time jobs, rather than one full-time permanent job, at least it would be money coming in until January.

Nancy

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Author: bonitajennita Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 173043 of 308881
Subject: Re: pay down cc or keep in savings Date: 11/10/2003 3:54 PM
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We are already closer to my family (an hour away). We moved because we didn't want to settle on the East Coast. We just stayed in DC because that's where we went to school. In hindsight, I would have gotten a job first, but I was getting very unhappy and we both wanted a change. We both graduated from a very good school so don't expect to go much longer without jobs. My income is paying all the bills for now.

I do appreciate your concern:)

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Author: uwalum Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 173113 of 308881
Subject: Re: pay down cc or keep in savings Date: 11/12/2003 1:12 AM
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Questions - Whose savings is it and whose cc is it?

The answers will make a huge difference on how I will respond.

L

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Author: bonitajennita Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 173200 of 308881
Subject: Re: pay down cc or keep in savings Date: 11/13/2003 11:16 AM
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Questions - Whose savings is it and whose cc is it?

Savings is both, CC is mine.


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