pay of 0% CC now, or wait till promo ends

FSFITZ · #1 (**permalink**) 03-23-2009, 09:53 AM

I'm currently unemployed, receiving UE benifits and working part time while I look for gainful employment. My house hold budget is at a 500$ monthly deficit. I have about 8k on two 0%APR credit cards. I just came into 2k. Should I put that money into paying down the credit cards now, or try to do something else (invest etc?) and wait until the 0% promo ends September? BTW, I have a credit score in the 730's.

boosami · #2 (**permalink**) 03-23-2009, 10:12 AM

There's certainly better things you can do with it than pay down a promo 0% rate credit card early. Post your income and budget, and we'd be happy to help you figure out the best use of that $2k.

FSFITZ · #3 (**permalink**) 03-23-2009, 10:20 AM

Budget (outgoing) 5300
Income 4900

sweeps · #4 (**permalink**) 03-23-2009, 10:42 AM

Quote:

Originally Posted by FSFITZ

Budget (outgoing) 5300
Income 4900

This seems like a problem....

boosami · #5 (**permalink**) 03-23-2009, 10:49 AM

Quote:

Originally Posted by FSFITZ

Budget (outgoing) 5300
Income 4900

What's the breakdown of the outgoing $5,300? And that's a $400 deficit, not $500 as previously stated.

FSFITZ · #6 (**permalink**) 03-23-2009, 02:39 PM

I work part time at a restaurant--tips (this month was a little better than usual). This month the defect is projected at 400. Last month it was 500. 500 is the usual trend since losing my job in Dec.

disneysteve · #7 (**permalink**) 03-23-2009, 03:23 PM

How are you covering that monthly deficit? Are you drawing from savings or are you using the credit cards?

FSFITZ · #8 (**permalink**) 03-23-2009, 05:04 PM

covering deficit by paying mortgage in between due date and end of grace period to collect extra cash.

disneysteve · #9 (**permalink**) 03-23-2009, 06:18 PM

Quote:

Originally Posted by FSFITZ

covering deficit by paying mortgage in between due date and end of grace period to collect extra cash.

Not entirely sure what this means but if you are able to pay everything without depleting savings or increasing debt, you don't actually have a deficit.

To address your original question, given your situation, I wouldn't send that 2K to the CC. You need it as a reserve to cover your monthly bills. Keep it in savings to draw from as needed.

I'd also suggest posting a detailed breakdown of your monthly expenses and let us see if we can help you lower that $5,300 to get it closer to (or below) your income.

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