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KittyCat
Happy Summer !
Member since 5/05 2241 total posts
Name:
Kathleen
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Finance Question
If you had a credit card balance around $1,000.00 and had that money put on the side in a different account, for savings, emergency - whatever. What would you do or what is better to do?
Take the $$ out of other account and pay off the credit card or continue to pay a little each month from your paycheck?
Thanks all !
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Posted 9/22/05 12:13 PM  |
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Long Island Weddings
Long Island's Largest Bridal Resource |
MrsD
LIF Zygote
Member since 5/05 15 total posts
Name:
Gina
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Re: Finance Question
I would use some of the money in the savings account to pay off the credit card - but not all, just in case you do have an emergency where you need the cash. Like $500, and then pay as much as you can from your paycheck each month, so that you end up paying less interest.
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| Posted 9/22/05 12:16 PM |
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MrsJ
I love my Katie Bug
Member since 5/05 11357 total posts
Name:
Kathy
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Re: Finance Question
Pay it all off at once. The interest you are paying of the cc balance is exceeding any interest you could be making on your $ in the bank.
Unless its a 0% interest card, if it is, pay it off slowly if you want.
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| Posted 9/22/05 12:16 PM |
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Janice
Sweet Jessie Quinn
Member since 5/05 27567 total posts
Name:
Janice
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Re: Finance Question
I would pay off card, and cut it up. Don't close it until you have your emergency money back in your account.
If you need the card due to emergency, just call up CC company and tell them to Fed Ex one to you. I think it is 10.00.
That way you have zero on your card, not paying intrest, have an account for emergencies only, and will be in process of building safety net back up.
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| Posted 9/22/05 12:18 PM |
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WoodIAm
My Boys!
Member since 5/05 5498 total posts
Name:
JoAnne
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Re: Finance Question
Posted by Janice
I would pay off card, and cut it up. Don't close it until you have your emergency money back in your account.
If you need the card due to emergency, just call up CC company and tell them to Fed Ex one to you. I think it is 10.00.
That way you have zero on your card, not paying intrest, have an account for emergencies only, and will be in process of building safety net back up.
This is a great if idea!
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| Posted 9/22/05 12:28 PM |
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Janice
Sweet Jessie Quinn
Member since 5/05 27567 total posts
Name:
Janice
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Re: Finance Question
Posted by WoodIAm
Posted by Janice
I would pay off card, and cut it up. Don't close it until you have your emergency money back in your account.
If you need the card due to emergency, just call up CC company and tell them to Fed Ex one to you. I think it is 10.00.
That way you have zero on your card, not paying intrest, have an account for emergencies only, and will be in process of building safety net back up.
This is a great if idea!
thanks, it always drove me crazy to payoff a card just to charge it back up again. DH insists on have a credit card, so we do, we just don't have the physical card.
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| Posted 9/22/05 12:32 PM |
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ChristineR
New Year, New Beginnings!
Member since 5/05 2083 total posts
Name:
Christine
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Re: Finance Question
Posted by kelleherkm
Pay it all off at once. The interest you are paying of the cc balance is exceeding any interest you could be making on your $ in the bank.
Unless its a 0% interest card, if it is, pay it off slowly if you want.
I agree 
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| Posted 9/22/05 12:32 PM |
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dm24angel
Happiness
Member since 5/05 34581 total posts
Name:
Donna
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Re: Finance Question
the credit card for sure..the money your PAYING in interest is much more then you would ever get back in savings. That $1000 is much more when you add interest on.
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| Posted 9/22/05 1:56 PM |
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monkeybride
My Everything
Member since 5/05 20541 total posts
Name:
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Re: Finance Question
Posted by kelleherkm
Pay it all off at once. The interest you are paying of the cc balance is exceeding any interest you could be making on your $ in the bank.
Unless its a 0% interest card, if it is, pay it off slowly if you want.
I would say the same thing.
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| Posted 9/22/05 2:11 PM |
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AJsMommy122
Stop 2 smell the roses
Member since 5/05 2048 total posts
Name:
Maxine
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Re: Finance Question
It depends if the CC is 0% interest I would pay $500 and keep the other $500 in my emergency account and pay it everymonth.
But if you have interest gaining on the CC bill I would pay it in full and stick the CC somewhere like your freezer. NOT in your wallet/purse so it can't be used for impulse shopping or non emergency. If you have an emergency you now have a fully paid off CC to use and can go home and get it.
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| Posted 9/22/05 2:16 PM |
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butterfly22
LIF Adolescent
Member since 5/05 691 total posts
Name:
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Re: Finance Question
Posted by monkeybride
Posted by kelleherkm
Pay it all off at once. The interest you are paying of the cc balance is exceeding any interest you could be making on your $ in the bank.
Unless its a 0% interest card, if it is, pay it off slowly if you want.
I would say the same thing.
Ditto! Clear it up and be done with it. if you keep paying the minimul you will never get rid of it & you are wasting your money on that interest you are paying out.
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| Posted 9/22/05 2:32 PM |
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KittyCat
Happy Summer !
Member since 5/05 2241 total posts
Name:
Kathleen
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Re: Finance Question
Thanks all ! I decided that I am going to take $500.00 out of savings and $500.00 out of my paycheck the 1st week of October and it will be gone. It took us 5 years to have no credit card debt !!!
Thanks for your advice!
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| Posted 9/22/05 2:45 PM |
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Shelly
She's 7!!!
Member since 8/05 14624 total posts
Name:
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Re: Finance Question
I would definitely pay it off all at once (if its not 0%) and then restock your savings. You can use the money on your credit card if you have a real emergency. Meanwhile- if you don't pay it off, you are throwing money away in finance charges.
I would also not use credit cards in the future unless you plan on paying them off in full each month.
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| Posted 9/22/05 3:02 PM |
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DRMom
Two in Blue
Member since 5/05 20223 total posts
Name:
Melissa
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Re: Finance Question
You can also look into doing a balance transfer to a card that is 0% for 12 months. Pay off about 300 put your 700 left over into an internet bank acct or money market acct yielding 3% or higher ifr you can find it and pay off the card out of your paycheck, the best of both worlds
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| Posted 9/22/05 4:35 PM |
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MommyofG
just the girls
Member since 5/05 9461 total posts
Name:
Janice
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Re: Finance Question
Posted by Janice
I would pay off card, and cut it up. Don't close it until you have your emergency money back in your account.
If you need the card due to emergency, just call up CC company and tell them to Fed Ex one to you. I think it is 10.00.
That way you have zero on your card, not paying intrest, have an account for emergencies only, and will be in process of building safety net back up.
All good points EXCEPT the "dont close it " until ......-- NEVER CLOSE YOUR CREDIT CARDS ACCOUNTS!!! that is how you establish credit and what the banks look for when issuing you a loan whether its for a house, a car or a boat. Believe it or not the more you have the better it is, and the amounts of the credit cards give you is important too and the most important is how long you have had them!!!! For our house they wanted to see 3 CC that were open for more than 5 years to get my low finance rate. I had 3 over 10 yrs with excellent credit. Oh and when you open and close accounts be careful some credit cards wont and if they do they will charge you a higher interest rate- its so weird how they think! AND your credit starts from that day NOT from when YOU HAD an account with them, so dont close them, and why spend the money to get a new card, just hide the damn cards on yourself put them in a safe deposit box or a safe, away from your sight if you think you are gonna spend away. GL!!!!
Message edited 9/22/2005 6:02:11 PM.
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| Posted 9/22/05 6:01 PM |
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Tah-wee-ZAH
Kisses
Member since 5/05 15952 total posts
Name:
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Re: Finance Question
Posted by kelleherkm
Pay it all off at once. The interest you are paying of the cc balance is exceeding any interest you could be making on your $ in the bank.
Unless its a 0% interest card, if it is, pay it off slowly if you want.
Yes, this is what any financial advisor would say... pay down the highest interest rate first.
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| Posted 9/22/05 9:29 PM |
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DjPiLL
Member since 5/05 3664 total posts
Name:
Richard
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Re: Finance Question
Pay off the credit card.
Worse case scenario... if you absolutely need money to put food on the cable... charge it. Or take out a cash advance (but that should ONLY be for EXTREME emergencies).
Why pay interest on a card "just in case" of an emergency. CC cards have like 20% interest! Pay it off! 
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| Posted 9/22/05 11:45 PM |
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