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Katie111806
Team Pink!
Member since 12/06 5349 total posts
Name:
Katie
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Spinoff to Living within Means: What would you do?
DH and I have a decent amount of CC debt from living on our own from a pretty young age, etc. We have been paying it off steadily, and have not used our wedding money towards it at all because of wanting to save that as our "nest egg" towards a house.
Some days, however, I think it is so silly since some of the debt is racking up interest. It just breaks my heart to use the generous gifts of our friends/family towards our bills.
What would you do?
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Posted 5/24/07 5:01 PM  |
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chikita315
Love
Member since 8/06 7945 total posts
Name:
M-lo
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Re: Spinoff to Living within Means: What would you do?
You have to think of it this way. How much are you paying in interest vs. how much interest are you earning on that money in savings?
IMO, if you are paying more interest then earning, your money is better spent paying off your cards.
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| Posted 5/24/07 5:02 PM |
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sami
So very blessed!! Thank u !!
Member since 8/06 6524 total posts
Name:
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Re: Spinoff to Living within Means: What would you do?
I think I would pay off the larger CC debt.
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| Posted 5/24/07 5:05 PM |
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SweetestOfPeas
J'taime Paris!
Member since 3/06 32345 total posts
Name:
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Re: Spinoff to Living within Means: What would you do?
pay it off. like you said, you're paying interest on it. Unless you're earning more interest on your wedding $, I would pay it off.
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| Posted 5/24/07 5:05 PM |
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angnick
Life is So Wonderful!
Member since 8/06 6663 total posts
Name:
Angela
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Re: Spinoff to Living within Means: What would you do?
dh and i hae this same conversation with friends of ours.
you are paying about 17-25% A MONTh on your credit card debt.
yet, you have lets say 25-40k in the bank from wedding gifts earning - lets assume the best here, that you have an ing savings account earning 4.25% a month.
ok, so let say your cc bill is 10k. and lets say you make the min payments,
17% of that 10 is 142 a month
25% of that 10k is 208 bucks a month.
Now, on the interest- you are earning lets say if you have 25k in the bank
89 dollars a month
and if you have 40k in the bank, 142 a month.
It is SILLY and ILLOGICAL for you to not pay off your bills.
you are THROWING money away every month.
Just my opinion.
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| Posted 5/24/07 5:05 PM |
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mikeswife06
Drama Momma
Member since 9/06 9947 total posts
Name:
Anne
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Re: Spinoff to Living within Means: What would you do?
I HATE debt so I would pay it off. But you can always pay off the bills with the highest interest rates and then save some in a high interest savings account. Don't deplete your savings altogether but I would def pay a good chunk off.
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| Posted 5/24/07 5:13 PM |
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bikramaddict
mommy-to-be
Member since 8/06 4376 total posts
Name:
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Re: Spinoff to Living within Means: What would you do?
can you transfer it to a cc with 0% interest for a year? That way you're not losing money AND keeping your wedding money in the bank.
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| Posted 5/24/07 5:17 PM |
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lkrpaul
Becoming a Big Brother!
Member since 5/07 2541 total posts
Name:
Laura
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Re: Spinoff to Living within Means: What would you do?
You don't have to wipe out your entire savings to pay off the bills. You're right in that you want to have something in the bank. However, you should definitely use a big chunk of it to pay off whatever you can of those bills. And yes, pay off the ones with the highest interest rates first.
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| Posted 5/24/07 5:19 PM |
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angnick
Life is So Wonderful!
Member since 8/06 6663 total posts
Name:
Angela
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Re: Spinoff to Living within Means: What would you do?
Posted by RandJ0806
can you transfer it to a cc with 0% interest for a year? That way you're not losing money AND keeping your wedding money in the bank.
i totally agree on the 0% thing.
i also agree u shouldnt wipe out your savings.
leave a 10k cushion if possible.
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| Posted 5/24/07 5:23 PM |
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MrsSteflily
I love chocolate
Member since 4/06 2047 total posts
Name:
Stef
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Re: Spinoff to Living within Means: What would you do?
We did it both ways.
Some went to savings
The rest (actuallity the majority) went to pay off debt, which enabled us to add more to our savings each month.
Doing it this way definately put us into a better position to buy our house. Our DTI was a lot lower, which meant that we could afford a larger mortgage.
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| Posted 5/24/07 5:36 PM |
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Shroggie
Don't Worry...Be Happy
Member since 5/06 6261 total posts
Name:
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Re: Spinoff to Living within Means: What would you do?
Just keep a small amount for savings, but pay off as much debt as possible...it will feel soooo much better
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| Posted 5/24/07 6:58 PM |
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mcl916
my two loves
Member since 10/06 5133 total posts
Name:
Megan
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Re: Spinoff to Living within Means: What would you do?
Posted by RandJ0806
can you transfer it to a cc with 0% interest for a year? That way you're not losing money AND keeping your wedding money in the bank.
We have been carrying credit card debt for over 2 years and the ENIRE time it has been on 0% cards. We have not paid a penny in interest for this debt and at one point it was over 30K. If your credit history is good, try to open a card with a different company and tell them you want 12 months 0%. Then when we got our wedding money we put it in some stock and mutual funds and that has been stadily making up money. This is the best option!!
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| Posted 5/24/07 7:42 PM |
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