What to do with $400-$500 ?
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|Wed, 11-30-2011 - 12:21am|
Ok, I didn't win the lottery. I just have those $400-$500 that I managed to "save" to utilize this end of the year...They are NOT my eFund nor my sinking fund...the eFund has more or less $375 (still) and the sinking fund has been "sinking" on and off, and I can manage to accumulate about $50/week that can still be put towards that sinking fund...
So, these are my options:
1) Pay off a debt (DELL) that until now was an interest free account, but will kick on 21.99% starting January and run for another 3 years. I pay $26.59/month for that debt. If I pay it off, I could save those $26.59 or use them to pay off another small debt. And will be saving about $430 in interest... This is my favorite...
2) Use them to reduce the current overdraft in my checking account: I live on overdraft and pay an average of $14/month in interest there...not that happy with this one, because it will mean that "somebody" will feel there is "some" money there to use, and the $400-$500 will soon be history.
3) Pay for two courses I want to register my younger son. He has been having huge problems at school because of his anxiety attacks and his anger management issues, and has no friends. These courses are the only thing he likes (he is academically bright) and both the counsellor and the teacher have encourage us to involve him in activities that may help with his social skills...between the two, they cost $400...I will do this even if I have to charge this to the CC. The difference? If I pay off the DELL account, I won't be able to have that debt again. Paying that, I would be avoiding a 21.99% interest, while charging these courses to the CC mean that I will be paying an interest of 12.45%.
Options such as using the money to reduce the other credit cards are not being considered, as each time I manage to reduce a CC for $200-$500, then there is a "need" or a "want" coming from my DH and I don't know how to say no...
My plan, actually, is being closing one credit card at a time: we managed to close our two RBC cards last May and now we are paying a loan instead. The good side is that loans have usually lower interests, don't charge annual fee and you can't use them again, so they just go down as you pay...if I can do that with a CC that we currently have on $18,400, then we will have less opportunities of bouncing back to the limit.
Any thoughts of which option from above will be the best? Any other ideas?