Vadalia
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I've been in this situation before and I did use my savings to pay off the credit card debt. Look at it this way, if you can save $500, it will only take 4 months to save up the $2000 again, however you will have saved a lot of money in the long run by paying off a high interest debt. |
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Steveo
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Well, how much interest do you get on the savings account? Not more than what you are paying on the credit card, right?
Use the credit card for the emergency. You will wind up with more money in your pocket. |
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mister ed
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i love you for worrying about having a rainy day fund == but i would pay off the credit cards and than use your monthly payments plus the 500 to increase your rainy day fund!!! |
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Gary
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Double your credit card payments. Do not add to your credit cards. Continue to save money. |
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Maranda B
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I would pay off the credit card and put it away for emergencies only. if you put away 500.00 a month in savings, than you'll have that amount back in only four months, and you don't have to worry about a creidt card, and paying all the extra interest. |
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e1979c
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pay off the card, and keep it for emergencies |
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maplewoodjoe
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Good job saving that cash. You should pay off the high interest credit card, and use the balance on your card in case of emergency. |
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Michael K
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IF you pay it off you'll have about $1500 left in savings. By cutting out all unnecessary expenses and saving as much as you can you can rebuild your savings. Make sure you don't add to the balance or it won't help you one bit. |
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Nick
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Pay of the card... next time specify what the "savings" are. |
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carly sue
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My suggestion to you is that you put away 3-6 months expenses in a savings account and then worry about the credit card. The reason for this advice is that if an emergency was presented to you at this point, you would probably have to use the credit card to pay for it thus driving yourself deeper into debt. |
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Iloveshane
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i would pay it off and not charge anymore. you wont have to pay a monthly fee for the cc. youll still have 1500 left over which is more than some ppl have. and then keep saving and youll be ok. you cant say you have money when you owe money. :) |
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Night G
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It all depends on the interest rate on the credit card, as well as how long this $2000 has been sitting there. Obviously you spent the money on something... if it was emergency, why didn't use your savings? Was it a lump debt, like a trip or vacation, or has it been accumulating over time?
I will guess that it was probably a lump expense. Personally I would see if I could find a different credit card, that would offer an extremely low to 0% interest rate. A limited offer of only 6 mo's would be fine. I would then roll the debt onto that card, And take my 500 a month and pay it off. The only thing you need to watch for is the fees that are sometimes involved with balance transfers and/or the "checks" that you can use. If you can find a no fee balance transfer, I wouldn't hesitate to roll it over, then take 3-4 months and pay it off using the $500 a month I'd normally stick in savings.
Do some research and figure out the best way to not pay interest on your debt. If none of the above are possible, pay it off now with savings. |
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Weimaraner Mom
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Pay off the cards and take the $500 plus what you were throwing at your cards monthly and rebuild your savings account. You'll have it built up in no time. |
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Monkeyguts
 |
pay it off
stop paying that high interest |
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