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I have about $ 2300 in a savings account that draws 3.05%. I have about $ 6800 in credit card debt on a card with 9% interest. Would it be wise for me to just take my savings (and that’s all I have) to help pay off my credit card debt? I’d like to pay off the debt as soon as possible, but I also don’t like the thought of having no available cash.

3 Thoughts on Question about savings account versus credit card debt?
  1. Reply
    jeb903
    November 26, 2011 at 9:54 pm

    Get rid of the credit card debt asap and then don’t allow yourself to accumulate a future credit card balance; it’s financial suicide! Once you get your balance paid off, pay the entire bill every month; period!

    Yes, put the $ 2300 towards the credit card debt.

  2. Reply
    heybulldog
    November 26, 2011 at 10:10 pm

    I would leave $ 1000 in the bank for an emergency. Put $ 1300 on the debt. Then work a written budget. Pile as much cash as you can squeeze out of your budget on the debt every month until it is gone.

    Don’t forget to cut up and cancel all the credit cards.

    Check out http://www.daveramsey.com and listen to his radio show. He has lots of great common sense advice on money and debt. It doesn’t cost you a dime to listen to the radio.

  3. Reply
    ed
    November 26, 2011 at 10:52 pm

    $ 2,300.00 is not much to have for emergency. It’s all you have, keep it there.

    Your “partial debt” is offset and is a net cost percentage wise of 5.95 %. That’s not too terrible, and you have your cushion in the bank.

    See if you can get a short term CD with more interest.

    Any increase will reduce the cost of your debt.

    Work on the debt and pay as much extra as possible on the principle. You may never replace the savings.

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