Credit Card Debt.

[fruitbowlk]

Ok. I have over 1,000 in my EF. I am now ready to pay off my 1 CC debt. ($4500)Should I stop saving in my other savings accounts? I save $50 a month for my EF and $20 in another savings account and $50 in my x-mas account. I am already paying the cc company 135 a month and I was going to start pay and an extra 135 every two weeks when I get paid. Which would be 405 a month. (135X3). It would give me a chance to pay off the cc debt in a year.

[disneysteve]

This may or may not be the Dave Ramsey answer, as I'm not a follower, but I'd say to keep saving a little toward the EF as $1,000 really won't get you far if anything actually happens - car repair, medical bill, home repair, etc. - and put the rest toward the credit card with the highest interest rate.

[ActYourWage]

Use the money you have going to savings to reduce cc debt. The faster those debts are gone, the faster you can build up your EF. Use the low $1000 EF as a motivator to knock out the debt as fast as possible. Or if you must, bump up the EF to $2000 and begin the debt reduction.

[maat55]

The whole purpose of Dave Ramsey's plan is to get motivated to payoff your debt quickly. You have your 1000 EF, I would use every extra penny toward your debt. Set a goal for less than a year if possible. Getting out of debt supercedes any other expense you have including christmas, eating out, etc. Sell stuff, work more hours.

Getting debtfree is a worthy goal and then you can use this same focus to invest for the future. Financial freedom is worth more than a bunch of useless stuff. Enjoy it.

[LivingAlmostLarge]

What about money for your vacation to Caribbean? You could use that as well.

[nextel500]

Can you tell us more information? whats the APY in the EF and the APR in the credit card.

[sounderella]

I would use your EF to help pay off that c.c. That would already put you about a 1/4 ahead of the game. Plus, after the c.c is paid off...you can continue that extra payment back towards your EF fund. If something goes south, you can always use the available balance on the c.c as an emergency fund.

Jeffrey posted regarding this issue:

http://www.savingadvice.com/forums/credit-debt/14365-paying-off-credit-card-debt-vs-building-emergency-fund.html

[fruitbowlk]

I would use your EF to help pay off that c.c. That would already put you about a 1/4 ahead of the game. Plus, after the c.c is paid off...you can continue that extra payment back towards your EF fund. If something goes south, you can always use the available balance on the c.c as an emergency fund.

Jeffrey posted regarding this issue:
http://www.savingadvice.com/forums/c...ency-fund.html

I can no longer use the cc card. And I just don't think it makes sence to pay off a credit card and then to continue to use it. All that does is put you in debt where I'm not trying to be. My goal is to built wealth.

[fruitbowlk]

Can you tell us more information? whats the APY in the EF and the APR in the credit card.

My APY on my EF is 3.28
My ApR on my CC is 6.90

[fruitbowlk]

What about money for your vacation to Caribbean? You could use that as well.

The money I'm using for my cruise is paid every few months until the balance is paid in full. I'm just using my paycheck for that.

For ex: In feb I paid $ 25. My next payment is Aug for $150.00. My next payment is Nov. for the remaining balance.

[LivingAlmostLarge]

Cancel the trip, since you aren't going with your spouse anyway and get out of debt.

If you think your husband can't afford a trip, neither can you with CC debt.

[nextel500]

My APY on my EF is 3.28
My ApR on my CC is 6.90

Anyway to get that APR on the credit card lower? Perhaps 2.99?

[disneysteve]

The money I'm using for my cruise is paid every few months until the balance is paid in full. I'm just using my paycheck for that.

For ex: In feb I paid $ 25. My next payment is Aug for $150.00. My next payment is Nov. for the remaining balance.

Although you are paying for your cruise out of current income, you need to realize that doing so is keeping you in debt longer, since you are diverting money to the cruise that could have gone to pay off the debt. I think you need to reconsider your financial priorities.

[fruitbowlk]

Although you are paying for your cruise out of current income, you need to realize that doing so is keeping you in debt longer, since you are diverting money to the cruise that could have gone to pay off the debt. I think you need to reconsider your financial priorities.

Steve I haven't been anywhere in over two years. I think I should be able to enjoy life. I have 1 cc to payoff. That's my only debt and it's only $4500. And I'm not struggle to pay it or any other bills. I think my financial priorities are in order.

[fruitbowlk]

Cancel the trip, since you aren't going with your spouse anyway and get out of debt.

If you think your husband can't afford a trip, neither can you with CC debt.

I'm not canceling my trip. So what if husband can't go.