Couple Questions about credit card and debt?

[puppypal]

OK Here is the deal. I have a bank of america card no fee and it is flat 12.9% interest. We had a medical type thing which Since we didn't have dddddaaaaaaa enough in savings to cover it I had to use the card. Along with mail order scrips blah blah blah.
The debt
1615.79
ouch! Largest it has ever been in ten years! Stressing to the max....
Heck I worry about bills due in October. Anyho,
Here is the deal.
I will be getting around 700.00 back from uncle Sam after I pay state.
Also my dad gave us a Christmas present of 500.00 cash.
He wants us to buy an outdoor grill.
Which by no means will cost that.
Should I take the entire amount which of course is 1200.00 and pay the card?
Reminding you that savings has been drained.....
Saving for tomorrows problems has been a struggle and many have came up. So it is really drained. I have thoughts of using some on the card some in savings or all on the card. What is your thoughts?

Originally Posted by puppypal

Reminding you that savings has been drained.....

hmm, I angle more to the conservative, defensive mindset these days.


me personally? I would put it all in the bank and develop a plan to attack that debt (with extreme prejudice) out of income.


I consider any interest rate I'm paying above .01% to be hideous but 12.9 isn't that bad as these things go provided it's not allowed to fester too long.


I'm being a hypocrite in what I tell you as when I was in your situation (to the tune of over $7000 on an income in the upper 20's in a house whose rent was an entire paycheck and too far from work), I didn't put anything in the bank, I went ballistic on my debt with a ferocity that made many of my friends think I'd lost my mind -- "why won't he come out with us this weekend / go to the movies / go out of town / do ANYTHING?" -- that sort of stuff.

I was fortunate to make it through without running into any problems (took right around a year) but the way I was living, had I hit even a small bump, it would have hit hard since I was literally on the financial edge.

I won't say I regret it but the attitudes I've developed since then make it doubtful I would ever be quite so reckless should I have to repeat the process for some reason.


oh, and I wouldn't be getting a grill, for any amount.

sorry Dad, I'd like to think you'd understand.

[LuxLiving]

Past, Present, Future

1200 divided up.

Past - CC 400
Present - Grill 200
Future - Emergency Fund 600

That is assuming you are having no difficulty meeting the minimum payments on the CC. If so, then I'd switch them around and put 600 to the CC & 400 to the e-fund.

And as you're aware of becoming more concious of the fact that things happen and you need money stuck back to cover them when they happen, as we both know they WILL HAPPEN, we just don't know when. Getting spouse on board may be another matter. If he's willing to postpone the grill then I'd say go to putting even that money to the debt, then if you're able to turn things around mentally and start saving for the things you guys want PLUS saving for the eventual 'emergencies', he'll eventually get his grill.


I don't know that in my part of the world if you can even still buy a grill in February????? Possibly if they've still got them they may be discounted at this time.

OOPS: I just reread your post and it's your Dad that wants you to buy a grill...then you'd need to discuss with him why you'd want to do something else with the money.

[PrincessPerky]

If you don't buy a grill with dads money, talk to him about it, tell him why you would rather use it for debt..and don't ask for a grill or comment on not owning one!

But other than that, I ditto the split, and very aggressive debt payment...and next time ask the medical bill if you can make a payment plan, the interest might be better.

[puppypal]

My dad is a major tightwad! King Miser! I have learned how to budget mostly from him. But there has been a time or two like this time emergency was a priority and poof! I lose my squeakyness. LOL
This is the only credit card we have thank goodness. I do over stress 100% worried to death on the might of. We live very very meek and manage to own our on
home 565.50 a month
pt payment 250.00 a month
yaris payment 200.00 a month
insurances -->car #1, car #2, House and 4-wheelers (Which my dad bought the kids)
and personal property taxes for all
and basic ulitilies
CC

on
1578.00 a month pay.....
I pay myself once a month and try to keep the monthly bills down to that.

We live basically off what DH nets after child support which is around 1000. a month. this includes gas and food and clothes and everything esle. I just hate debt. I own my home and pay on that but otherwise we have on two cars totally 14,000 owed.
I just freak when i owe anyone.....
Just looking for the best option since I can't of course pull extra out of a hat! Still wishing though! LOL

[Scanner]

I would agree you don't need $500 to get a nice grill. $200 is enough to make anyone happy and Dad should understand that.

If you are real disiplined you could take out a credit card with a teaser rate of 0% but you know how that goes - don't pay it off and you are really screwed, hit with back interest and all.

Anyway, I think you are kind of obligated to pay down the credit card debt as much as you can.

You know why? Because it sounds like that serves as your emergency fund. A $1200 medical bill is actually nothing in the realm of healthcare - that's like a band-aid or something and you weren't able to pay it.

You need to establish an emergency fund or at the very least - 3 to 6 months of living expenses. Or open up a home equity LOC and get 6-8% interest on emergencies vs. 12.9%. Some people do that who aren't as credit adverse (like me) as others and then have that money earning more in investments.

Good luck.