Quote:
Originally Posted by jIM_Ohio
I think paying down the cc is a better decision than leaving money in savings.
If one thing (cc) is costing you 10 or 20% and another thing (savings) earns you only 2%, then it makes sense to pay off the debt costing you more money.
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From a mathematical viewpoint, this is very true. From a standpoint of learning good habits, this is so very wrong for a spender. I had to learn how to save before I really learned how to control my spending. Its a habit like any other and if you don't develop it, you won't have it.
I agree that you shouldn't try to save up a fortune while paying off the credit cards but you do need some savings to avoid continuing to rack up the cards. Otherwise, you make nice large payments on the credit cards while you make nice large purchases on them as well and you never make any progress.