Save or pay off credit cards? (m)

iVillage Member
Registered: 03-26-2003
Save or pay off credit cards? (m)
3
Sun, 05-04-2003 - 8:57pm
Hello! I have been putting about $300 away a month in savings, but am starting to wonder if maybe that $300 should be going to credit cards instead. I mean, I am only getting like $1.00 every three months for savings! I could be paying off credit cards -- should I be doing that instead?

Avatar for cl_beckymk
iVillage Member
Registered: 03-19-2003
Sun, 05-04-2003 - 9:25pm
It depends!! Congratulations on being able to put $300/month away. That is awesome.

I'm a big on pushing for an emergency account at least of some sort. You could split the difference, put $150/savings & $150/toward debt each month. That would do 2 things, would still give you a cushion for emergencies and pay off the debt faster too.

OR another way to do it would be $300/savings one month then $300/credit cards the next and keep alternating it.

I think you should have at least a few months rent/mortgage saved up if nothing else, being that we are on unemployment, which is enough to cover most of our other bills (well, except car payment) but not enough for mortgage at all.

Becky

Avatar for cl_phocid
iVillage Member
Registered: 03-26-2003
Sun, 05-04-2003 - 9:53pm
I agree with Becky! Either splitting the difference or alternating months - whichever you're more comfortable with. Definitely continue to build your savings account - it's the only thing that will keep you from having to dip back into CC's if an emergency comes up.

CONGRATS on the monthly savings. You should be beaming from ear to ear everytime you see that money being put away.

Danni

All my best,
Danni

iVillage Member
Registered: 03-26-2003
Tue, 05-06-2003 - 2:52pm
I think it would depend on your cc bills. For example - my cc are on 0% interest. If that is your case then I would pay minimum on cc and save the rest, with the thought in mind of paying off the cc when the 0% offer is over.

Otherwise, I agree with the others, 1/2 and 1/2.

Kudos to you for making it a priority to save. I really need to stop thinking about doing it and just do it!