Re: Paying Yourself vs. Paying Credit Cards
I think your question is a very common one. It seems counterintuitive that NOT saving might be better, doesn't it?
I'm still working on a plan in this area, but one thing I know for sure is that my husband and I need to cut back on eating out. It is a considerable weakness for us! So instead of spending all that money on eating out, I'm going to take half of it and apply it to our credit card debt, and the other half will go into savings. That's the preliminary plan at this point, anyway; those amounts may be tweaked...
But the bottom line is, with the exception of credit cards with 0% APR (which are almost always intro rates anyway), you will always "save" more by paying down high interest credit card debt than plunking that money into a savings account with 2-3% interest rate. Because really, unless your credit card APR is less than your savings interest rate, you're just throwing money away.
~ Jenney
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