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If You Had To Choose..................

June 6th, 2007 at 03:55 pm

I will give you a purely "hypothetical" situation (and by hypothetical, I mean my exact situation) and ya'll tell me what you would do.

I have about $2,600 in credit debt that is being charged 0% interest and will continue to do so until January of 2008.

If you had $400 of discretionary income each month to either pay this credit card down or put into a savings account earning 5% what would you do?

Posted in Saving, Investing, Credit Cards, Managing Debt | 16 Comments »

16 Responses to “If You Had To Choose..................”

  1. gruntina Says:
    June 6th, 2007 at 03:58 pm

    I would pay off the the debt! So my focus can be set on investing without a debt hanging over sooner.

  2. scfr Says:
    June 6th, 2007 at 04:08 pm

  3. scfr Says:
    June 6th, 2007 at 04:09 pm

    Assuming that you have plenty of self-discipline, I would put the $400 in the account earning 5% interest and NOT TOUCH IT. Not touching it is the key. Just before the 0% rate expires, then I would pay off the card using the savings. If you paid off the card each month, you wouldn't quite get it all paid off before the 0% rate expired. But with the interest you can accrue on the savings account, you may have just enough to cover the entire bill by December or January. Of course, if you can up the amount you save each month by just a little bit, that would be better.

  4. creditcardfree Says:
    June 6th, 2007 at 04:26 pm

    I would pay off the debt. Sure you can make a few extra dollars in interest, but the feeling of having that payment off your plate is priceless!! Once it's paid off you'll have more than $400 to invest or save for something else. Let us know what you will do.

  5. dtjunkie Says:
    June 6th, 2007 at 04:35 pm

    I would pay off the debt and just get it over with.

  6. monkeymama Says:
    June 6th, 2007 at 04:44 pm

    I'd save it. Earn some interest and pay it off too - win-win. But only if you have the discipline. Wink

  7. koppur Says:
    June 6th, 2007 at 05:06 pm

    Pay off the debt. I've learned the hard way that 0% interest can build up very quick as soon as that0% turns to something higher.

  8. nance Says:
    June 6th, 2007 at 08:01 pm

    I'd pay off the credit card. Being debt free is worth more than a few dollars in interest.

  9. rduell Says:
    June 7th, 2007 at 03:09 am

    I was in the same situation and chose to pay off the card. I think the feeling of accomplishment and not having the worry of the debt hanging over me was worth more than the interest I would have earned.

  10. annab Says:
    June 7th, 2007 at 06:58 am

    I'f you already have savings, I'd say to pay off the debt. But if you've got nothing in your savings, then I'd say to put 2 months into savings, and then use the rest to pay the debt.

  11. Ima saver Says:
    June 7th, 2007 at 07:10 am

    I would pay off the debt. I know that you have a good emergency fund in a c.d. at your bank.

  12. carol Says:
    June 7th, 2007 at 07:26 am

    My vote is pay off that debt and get it out of the way first.

  13. pretty cheap jewelry Says:
    June 7th, 2007 at 07:32 am

    Pay off the cc wins?

  14. gremlingolfer Says:
    June 7th, 2007 at 08:34 am

    Ok the jury has spoken!

    I will focus on the C.C.

  15. Stein Says:
    June 10th, 2007 at 12:49 pm

    This is under a $75 discussion with plenty of downside potential, I would pay off the card.

  16. fern Says:
    June 11th, 2007 at 08:08 am

    pay off the debt!

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