should I

iVillage Member
Registered: 11-29-2004
should I
4
Mon, 02-27-2006 - 10:03pm

I was just thinking, my one credit card has $776 on it, and has really high interest. I have saved a little over $900 should I take it and pay it off? I think I should but then I will only have that little bit in my savings account....hmmmmm...I just dont know, I mean if a REALLY big emergency came up I could just ask my dad for my credit card (I got him to put them in his safe so I will stop using them until everything is paid off)

What do you think?

Thanks so much!

Mandy

Mandy
iVillage Member
Registered: 03-27-2003
In reply to: mandyjk
Mon, 02-27-2006 - 11:45pm

I would-it can be alarming to be on the edge but you can take the payment you making to that credit card and use it to build the savings account back up. The CC rate sounds like it's substantially higher than the savings rate. You might also challenge yourself to find some places to cut back in the budget temporarily until you've gotten back up to your comfort level.

Taleyna

Avatar for cl_phocid
iVillage Member
Registered: 03-26-2003
In reply to: mandyjk
Mon, 02-27-2006 - 11:59pm
I agree with Taleyna - she's right on the money (pun!) :)

All my best,
Danni

iVillage Member
Registered: 02-25-2006
In reply to: mandyjk
Tue, 02-28-2006 - 12:11am
Pay it off. That $776 will grow to a larger amount with interest (and in theory, could go grow to a level that eventually exceeds your savings). Paying it off may put you in a pinch in the short term, but in the long run, you're better off.
iVillage Member
Registered: 12-12-2004
In reply to: mandyjk
Tue, 02-28-2006 - 1:39am
Hi, MJK--I agree--pay off the cc. I mean, what savings account (or money market) is going to pay you 18% interest rate? And, with the cc minimum payments inching upward, it would be better to pay it off, rather than to make monthly payments of, say, $200, for 5 months. You should be able to fund the e-fund by then. WHiz.