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Post Info TOPIC: Should I pay off my cc debt?
Jahni


Dooney & Bourke

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Should I pay off my cc debt?
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Currently I have around $2500 in credit card debt. Aside from my insane student loans and my cell phone bill, this is the only debt or expense that I have. (Car's paid off, live with parents, insurance supplied through work etc.) At the moment I have around $5500 in savings, and a full time job that pays fairly well. I've been tempted to take half my savings and pay off my cc debt, but am a little hesitant. I know that if something horrible ever were to happen (i.e. lose my job, wreck my car, or lose a lot of money somehow) my parents would have my back 100%

So should I? Maybe pay half? Any other suggestions?



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Elle


Hermes

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Pay it off!  Look at it this way:  You're currently paying interest every month on that $2,500 debt.  It is not going away on it's own.  The longer you hold onto it, the more it will end up costing you in the long run.  Wouldn't you rather pay that off and earn interest on your remaining $3,000 instead, not to mention you wouldn't have that debt hanging over you anymore ..... Lets' just say you pay $10 a month interest every month on your CC balance.  If you earned $10 a month on your $3000 in a high-yield account and didn't have to pay interest anymore, really you'd be up $20 a month!

Send them a check ASAP!  Savings doesn't really get you anywhere if you have other debt anyway, according to Suze Orman!  Have you read Young, Broke, and Fabulous?



-- Edited by Elle at 10:59, 2007-05-14

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AllieGurl


Marc Jacobs

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Pay it off! Seriously, if you have the money and stability to live debt free then you should be taking advantage of that.

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littlebean


Kate Spade

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Pay it off!!!

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Bastet


Kate Spade

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Definitely pay it off if you can do it from your savings account.

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Alikat


Kate Spade

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I would definitely pay it off while you are living at home!

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lynnie


Chanel

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pay it off!!!!  theres no reason not to- i understand some really low interest debts being paid slowly- you never want to wipe out savings- but it seems like you're in a good spot!  pay it off and don't look back- your savings will quickly grow again.

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Jahni


Dooney & Bourke

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Thanks for the input girls! I just paid it off....man that feels good. If I didn't need my credit card for work I would cut it up...maybe I should switch to one with a lower limit? The interest rate on this one is pretty good though (only 8%).

Elle: Do you (Or anyone else) have any recommendations for a high yield account? I just have an ing orange account at the moment. I'm so uninformed about savings accounts and money in general...I just opened my first savings account in Feb. (I'm 27!) I feel like such a money slacker sometimes...

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It's pronounced "Johnny," like the boys name....but spelled like an Indian Zuchini.
Elle


Hermes

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Jahni wrote:

Thanks for the input girls! I just paid it off....man that feels good. If I didn't need my credit card for work I would cut it up...maybe I should switch to one with a lower limit? The interest rate on this one is pretty good though (only 8%).

Elle: Do you (Or anyone else) have any recommendations for a high yield account? I just have an ing orange account at the moment. I'm so uninformed about savings accounts and money in general...I just opened my first savings account in Feb. (I'm 27!) I feel like such a money slacker sometimes...


Good for you Jahni!

I use Emmigrant Direct for my high-yield - they've been around since 1850, but are all online now.  It's super easy to set up, and we just link it to our main bank account.  It shows you how much you've made so far for the month and for the year in interest, and you can transfer money to or from the account next-day.  All very convenient, and your money is very liquid but still makes a decent amount in interest.



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Aurora


Marc Jacobs

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Well an Orange account is a high interest account (not as high as some but very good compared to other banks). I tend to put in money in both my orange account and then I have about 4 cd's laddered with ING (meaning they mature at different times in the year at different intervals) which helps build up interest as well. I'm still researching an IRA and have yet to figure out who it is best to go with.

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Drew


Gucci

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Great job getting rid of that debt!  Just make sure you either pay off those CC balances every month or cut the cards up.  It would be really easy to get back into debt otherwise. 

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Farrah


Marc Jacobs

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Congrats on paying off your cc debt!! To keep myself from not paying my cards off each month I got a regular Amex card. (Which is a charge card that I am required to pay off on a monthyl basis.) I know that the annual fee stinks, but I would rather fork out $35 a year to stay on track as opposed to stupid finance charges.

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NCshopper


Hermes

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Great job paying off the debt! If you put the money that you were paying toward your CC debt every month and put it in your ING account, you'll be back up to $5k in savings in no time. Seriously, last year, we paid off our CC debt with a bit of savings and it's been the best thing I've ever done. We put that money into an ING account for about 6 months or so and then bought some stock. Wheeeeeeee!

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TheLovelyLady71


Hermes

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YEAH for paying off your cc debt!!! I know Joe helped me pay off some high interest cc's, and ohyee, felt like a load of bricks have been lifted off my shoulders. It's OK to have ONE for emergencies, etc., I think that's about it.

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dangergirl


Kate Spade

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congrats on paying it off!

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