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TreAnt427
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Member since 8/06 8652 total posts
Name:
Tracy
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Re: If you had money in a savings account....
Posted by BunnyBaby
Posted by ChilisWife
Ideally I'd *like* to pay off my debts and start over, but I wouldn't do it. Things can happen - medical emergencies, loss of a job, unexpected household expenses, etc. - and it is too dangerous not to have any money in savings.
See?? This is the dilemma I'm having!!!
I'm paying a crazy amount of interest on my credit cards- I feel that if I continue this way, I will never pay it off!! 
DH and I are in the same boat. We enough money in savings to pay off our debt, but I refuse to do it. We are planning to buy a house in the near future and I know that we will NEVER save that amount of money in such a short time.
So we pay as much as we can every month to pay off our debt and still contribute to our savings. It stinks, but that's the way it's gotta be for now!
We are actually doing pretty well with it, and have paid off a significant amount on one CC in about 7 months. That one will be paid off very soon, then on to the next one - which is about half of what the other one was.
We are on our way to being debt free!
Message edited 11/29/2007 9:23:30 AM.
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Posted 11/29/07 9:23 AM  |
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Long Island Weddings
Long Island's Largest Bridal Resource |
BunnyBaby
Loving Motherhood!!!
Member since 11/07 1238 total posts
Name:
Audrina
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Re: If you had money in a savings account....
You know what it is? I HAVE the money to pay my debt off- I feel that by just keeping it in the bank & not paying off these bills - I am only creating my OWN problems!!! I'm paying unneccessary interest.
I think I'm going to keep some money in the bank - pay off my cc bills & rip up those friggen cards.
Starting next paycheck, the money I would use to pay off those CC crooks, I'll add to my savings- I'm currently earning 4.8%- which is better than loosing 19.4%.
I need to have a sit down with Suze Orman. 
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| Posted 11/29/07 9:24 AM |
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BunnyBaby
Loving Motherhood!!!
Member since 11/07 1238 total posts
Name:
Audrina
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Re: If you had money in a savings account....
Posted by Katie111806
Posted by BunnyBaby
Posted by ChilisWife
Ideally I'd *like* to pay off my debts and start over, but I wouldn't do it. Things can happen - medical emergencies, loss of a job, unexpected household expenses, etc. - and it is too dangerous not to have any money in savings.
See?? This is the dilemma I'm having!!!
I'm paying a crazy amount of interest on my credit cards- I feel that if I continue this way, I will never pay it off!!
I posted a very similar question a couple of months ago. Can you contact any of your cc companies and ask that they lower your interest rates, or can you transfer any of the balances to a 0% interest card?
I sure can, but why (If I have the $$$)??
I remember I went into saving mode before my wedding- I can do this again.
This is my New Years Resoulution! 
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| Posted 11/29/07 9:27 AM |
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Ginger123
Sooo happy
Member since 8/07 1235 total posts
Name:
dana
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Re: If you had money in a savings account....
people that say pay all the debt off first..question? what do you do for unexpected expenses? not just emergencies... and lets say you dont have any help from anyone???
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| Posted 11/29/07 9:31 AM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: If you had money in a savings account....
Posted by BunnyBaby
Posted by Katie111806
Posted by BunnyBaby
Posted by ChilisWife
Ideally I'd *like* to pay off my debts and start over, but I wouldn't do it. Things can happen - medical emergencies, loss of a job, unexpected household expenses, etc. - and it is too dangerous not to have any money in savings.
See?? This is the dilemma I'm having!!!
I'm paying a crazy amount of interest on my credit cards- I feel that if I continue this way, I will never pay it off!!
I posted a very similar question a couple of months ago. Can you contact any of your cc companies and ask that they lower your interest rates, or can you transfer any of the balances to a 0% interest card?
I sure can, but why (If I have the $$$)??
I remember I went into saving mode before my wedding- I can do this again.
This is my New Years Resoulution!
because you will be losing money on your savings. If you consolidate and get 0% cards or much lower cards then you will be leaving your money in your savings account to accrue interest.
0% cards let you pay with no penalty as long as you pay on time.
You can still make bigger payments to the cards but why lose the interest?
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| Posted 11/29/07 9:34 AM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: If you had money in a savings account....
I would not empty my bank account- I would either wait till I had an extra $5K
or I would pay everything off leaving at least $5K in my account- for emergencies
then make sure I was taking all the money all the money I was paying towards the CC debt and put it in savings
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| Posted 11/29/07 9:35 AM |
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robynfs
12/6/10!!
Member since 9/05 4947 total posts
Name:
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Re: If you had money in a savings account....
I am in this situation...I have the money to cover my debt but I decided to keep my money in savings and pay down the debt. I am able to aggressively handle it though because I moved and my expenses are considerably less.
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| Posted 11/29/07 9:43 AM |
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Salason
♥
Member since 6/05 9878 total posts
Name:
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Re: If you had money in a savings account....
Posted by ali120206
I would look at the interest rates and see how much you are earning in interest on your savings vs how much you are paying in interest on your debt. If you are paying a lot more than you are earning - I'd pay it off. If you are earning more than you are paying, I'd continue to save and pay monthly.
EXACTLY
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| Posted 11/29/07 9:55 AM |
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Brittny817
LIF Toddler
Member since 8/07 410 total posts
Name:
Brittny
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Re: If you had money in a savings account....
NEVER eliminate all of your liquid. You never know what can happen ie loss of a job. Always keep at least a month to 2 months salary in your savings.
Take a look at your debt and the interest rates attached to it. Pay off any high interest cards you can afford to. Any debt that has set installments at a low fixed rate you should continue to pay as scheduled.
JMO
Message edited 11/29/2007 10:03:57 AM.
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| Posted 11/29/07 10:03 AM |
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Sassyz75
Turning a new page
Member since 5/05 9731 total posts
Name:
Dina
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Re: If you had money in a savings account....
well- how much interest are you earning in savings?
How much are you getting charged by the CC?
That woudl be your answer- and paying off all debt & starting over by paying into your savings what you paid each month to the CC company is the way to go.
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| Posted 11/29/07 10:04 AM |
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JandJ1224
Member since 6/06 5911 total posts
Name:
Jannette
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Re: If you had money in a savings account....
I would keep a small amount in savings and pay off debt that is costing you more than you are making. If you have an emergency come up you can always use the card to cover. I think in the long run you will be better off paying off debt.
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| Posted 11/29/07 10:09 AM |
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Lucky09
2017!
Member since 1/06 7536 total posts
Name:
DW
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Re: If you had money in a savings account....
Posted by ml110
i think it depends on what kind of debt it is, and what the interests rates are. if its credit card debt with a high interest rate, definitely pay it off!
BUT, like, i have student loans and i have enough in savings that i could pay them off and not have to worry about them. its so tempting, but the interest rate on the loan is so low and the monthly payments are so low, that its better for me to keep the money in my high interest savings account and pay the student loan down month by month...
Exactly - & this interest (along w/ home equity interest) gets you a nice tax break too!! 
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| Posted 11/29/07 12:12 PM |
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Kara
Now Zagat Rated!
Member since 3/07 13217 total posts
Name:
They call me "Tater Salad"
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Re: If you had money in a savings account....
Posted by MrsNYPDsGirl
Posted by ml110
i think it depends on what kind of debt it is, and what the interests rates are. if its credit card debt with a high interest rate, definitely pay it off!
BUT, like, i have student loans and i have enough in savings that i could pay them off and not have to worry about them. its so tempting, but the interest rate on the loan is so low and the monthly payments are so low, that its better for me to keep the money in my high interest savings account and pay the student loan down month by month...
Exactly - & this interest (along w/ home equity interest) gets you a nice tax break too!!
Student loan interest is only deductible for certain income brackets. If you make too much (like I do), then it's not. It will actually be more advantageous for me to pay off my (small) second mortgage and then refinance my student loans with a HELOC than it would be for me to keep my student loans. At least the HELOC interest would be tax deductible for me. Then again, my 2nd mortgage rate is lower than my private student loan and any HELOC rate I get will be higher than my federal student loan, so chances are I won't refi my loans anyway.
I am paying off my private student loans faster (at 9.12% interest, I want them GONE!), but my federal loans are at a rate below 4.5%. I earn more in a MMA than I pay on those, even though I can't deduct the interest. Then, of course, I have the problem that, if I do refi with a HELOC, I'll have a higher interest rate than that, etc., etc. It's not always so simple!
I think I just confused myself. 
Message edited 11/29/2007 12:16:01 PM.
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| Posted 11/29/07 12:14 PM |
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DeniseMarie
<3
Member since 8/07 10682 total posts
Name:
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Re: If you had money in a savings account....
Posted by SweetestOfPeas
I would pay off my debts and start saving again.
me too
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| Posted 11/29/07 12:16 PM |
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dandr10199
Grace is growing up too fast!
Member since 10/05 11561 total posts
Name:
Dina
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Re: If you had money in a savings account....
I would pay off as much debt as I could, BUT I would keep three months of living expenses in my savings, but keep it at a bare minimum (like rent/mortgage, utilities, food, gas for owrk...NO EXTRAS). KWIM?
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| Posted 11/29/07 12:16 PM |
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DRMom
Two in Blue
Member since 5/05 20223 total posts
Name:
Melissa
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Re: If you had money in a savings account....
Posted by BunnyBaby
Posted by ChilisWife
Ideally I'd *like* to pay off my debts and start over, but I wouldn't do it. Things can happen - medical emergencies, loss of a job, unexpected household expenses, etc. - and it is too dangerous not to have any money in savings.
See?? This is the dilemma I'm having!!!
I'm paying a crazy amount of interest on my credit cards- I feel that if I continue this way, I will never pay it off!!
If that is the case call and negotiate. If you have good credit you can do balance transfers as well. Then teh money you are saving in interest can go into savings-you may also want to look into an ING or other internet bacnk that offer 5% or even a CD for 6 mos.That should be your first step. You may want to read about Dr. Phil's debt diet as there is a plan for paying down debt reasonably.
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| Posted 11/29/07 12:20 PM |
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