Ask:
Dh & I have a check for $2000.00 from our insurance company from a hail claim last year. We did the roof ourselves so the company paid us instead of a contractor. The money is free & clear. Now my question is should we take $1000 of that money and pay off 3 cc and then just have one with a balance of about $1700. Then all payments that were going to 4 cc will go to the one. The remaining $1000 would be put into savings. Or should we put it all into savings or all towards the ccs? Keep in mind DH may go on strike in October and we have $4000 in savings right now for the strike. We could live roughly 2 months on savings and my paycheck. DR would say put it towards the debt but I need to be realistic here.
Answer:
I think the pay off the 3cc and put the $1000 in savings. With the situation you are in I think 3 less bills is good, then concentrate on paying one. Once that one is payed off then sock all money into savings.
Answer:
Originally Posted by [b
Quote[/b] (Rakshanda @ July 26 2006,11:09)]I think the pay off the 3cc and put the $1000 in savings. With the situation you are in I think 3 less bills is good, then concentrate on paying one. Once that one is payed off then sock all money into savings.
I think her suggestion here is good. YOu still have some extra in savings and without the other 3 cc bills you are just paying the 1. RIght now you could pay a lot extra on the one but if things get tight you could pay less on the 1 cc until things are better again. (as long as you are still making the minimum or a little more then minimum payment).
make sense?
Answer:
I agree pay off the 3 cc's at least!! The amount that you will save by not paying the interest will help you get out of that hole. Altho, if you got rid of the othe cc debt as well...if your dh went on strike just think of how many more months you could potentially get by....
But do the 3 at least!!
Answer:
I always pay way more then what is minimum on cc and that's usually where we run out of money and then end up using a cc. Dumb I know I'm trying to get better. When DH calls tonight I think I'll tell him that we're going to pay off cc and put half into savings. Thanks guys.
Answer:
Yep, I agree...it gives you a cushion in savings, and although you should NOT do it, in dire emergencies, say the strike goes on too long, you will have the CC's there. Just TRY not to do it!!!
Answer:
Originally Posted by [b
Quote[/b] (momof4girls @ July 26 2006,14:52)]I always pay way more then what is minimum on cc and that's usually where we run out of money and then end up using a cc.
I agree with others - save some and then pay off the 3 CCs. You can always pay minimum on CC if the strike goes longer than anticipated. Plus since you will only have the one CC, you won't have to worry about any of those payments.
Good luck and hopefully he won't have to strike then you will really be ahead in the game!