Pay off debt question?
May 30th, 2010 | 
Author: I have 00 in savings. I have a credit card that has 00 on it.
I just bought a house and believe I am living simply and within my means. After all mortgage payments, car loan, student loans, and the above mentioned credit card, I have about 5 for the month.
If I consider electric and phone/internet that’s about 0. Leaving me with 5 for gas and groceries. Sewer and water bill are negligible.
The credit card has a minimum payment of about monthly.
I’m most comfortable having the least amount in monthly expenditures.
Would it be wise to just pay off the credit card with the money from savings and free up that each month? I’d then have about 00 in savings and would hopefully be able to save a little bit each month, but my monthly expenditures would be less.
Advice appreciated.
Posted in free debt advice | 
Tags: car loan, credit card, expenditures, groceries, little bit, minimum payment, money, Mortgage Payments, phone internet, student loans, water bill
5 Responses to “Pay off debt question?”
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Definitely pay off the credit card. You are unlikely to be earning the amount of interest on your savings account as you are paying on the credit card debt.
Then, take the $80 you were paying to the credit card and put it in your savings account. You will build up that balance in no time.
Just remember to only use the credit card in an emergency – never allow the balance to build up again. Pay it off every month and you will give yourself so much freedom!
Keep doing what you’re doing – except for the credit card bill, I think you’re in pretty good financial shape. The next question would be: are you saving for retirement?
pay off the credit cards first. The intrest you save will come out greater then anything else you do.
I would say pay off the card. There is no need to continue paying the interest on $3200 when you could be saving that money, and having a little extra by not having that debt.
It appears you have dual comfort zones, keeping tthe $5200 in savings and having minimium obligations……….
ithe interest you are earning on the $5200 is far less than the interest you are paying on the credit card………
pay off the card………if you need it for emergencies it’s there, continue to save
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