Quote:
Originally Posted by scfr
Instead of paying the extra $50 towards your home's principal each month, you could put that money towards paying off your credit card debt and building an emergency fund. I'm all in favor of paying off a mortgage early, but I'd wait to do that until the cc's were paid off and you had an adequate emergency fund.
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I was told that the additional money paid to the mortgage went further than it would toward credit card debt. If I pay $50 to my principle for 4 months, I've cut out one month's payment. This is essentially equal to $700. Personally I am not sure what is better. We recently set up a new budget where we will be paying $375 towards the credit cards each month. At this rate, my card will be paid off in less than a year and Hubby's card within 6 months after that (his has the higher balance).
Quote:
Originally Posted by scfr
Also - Are you paying cash for everything now, rather than adding to the cc balances?
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The credit card balances are old. We only use them now if we HAVE to (for a purchase that needs a credit card) and then we add that amount to the payments we make each month.
Thanks for your input!
Kali