Pay off or pay down?

iVillage Member
Registered: 10-16-2009
Pay off or pay down?
8
Mon, 12-14-2009 - 5:10pm
iVillage Member
Registered: 08-02-1998
Mon, 12-14-2009 - 5:31pm
Divide and use 1/2 to pay down your credit card and use the other half to have an e-fund.




iVillage Member
Registered: 12-04-2006
Tue, 12-15-2009 - 7:14am
I believe if you have money coming your way and are able to pay off a balance then it is better to do so, rather than continuing to pay down (it will cost you less in interest in the long run) BUT only if you have an emergency fund in place already.
Based on what you have said, I would put aside the money for an EF, and if there is anything left put it towards reducing debt.
Lyn

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Lyn

iVillage Member
Registered: 06-03-2006
Tue, 12-15-2009 - 9:28am
I agree with the previous posters. I would take $1000 out and put aside as an emergency fund and use the remainder to put toward paying down the credit card. The emergency fund really is a life saver and helps
iVillage Member
Registered: 03-27-2005
Tue, 12-15-2009 - 10:55am

I would put $1000 into an efund and then pay down the cc with whatever was left over.


stacy

iVillage Member
Registered: 08-04-2008
Tue, 12-15-2009 - 11:41am

Is your question about what debt repayment will do to your credit score?




iVillage Member
Registered: 11-14-2008
Tue, 12-15-2009 - 1:07pm

Getting out of debt will feel fantastic! Going back into debt because of an emergency will feel horrible. Get your efund maxed and then plug away at the debt. There are no easy answers here. It takes awhile, but the getting out of debt will be that much sweeter!

Good luck.


iVillage Member
Registered: 10-16-2009
Wed, 12-16-2009 - 9:00am

I want to thank you all for the advice I will definitely put away into an EF first then start plugging at the debt. I wish I knew this stuff earlier on but the past is what it is. Again thank you all!!!


Dawn

Avatar for cl_beckymk
iVillage Member
Registered: 03-19-2003
Wed, 12-16-2009 - 9:16am

I'm sure all of us wish that but sometimes you just have to live it yourself to really have the lesson sink in.