Hi,
My wife somehow got $1800 into debt last year. It started off as a $178 credit card, her first credit card at the age of 25. And she did not even inform me the limit got raised.
Well we have almost nothing in savings or maybe a meager $500. My wife puts $10 a week into there but I just found out that whatever she puts in there during the month she takes out and puts towards her credit card debt.
I want to get the debt gone, but I also want something into savings which can be used in case of an emergency. I say we should pay off the debt AND put money into savings. My feeling is that if something happens then we are tacking on MORE debt that we just paid off!!! Isn't it so?
to save or to pay off
Hi Ryan,
I say we should pay off the debt AND put money into savings.
Yes, you will have to try and do both at the same time. You will have to simultaneously pay off the debt, and save money for emergencies.
First of all you will have to lower usage of credit cards. That way you will be able to control the growing debt more easily. I think you should separately set up a a savings account and put money into it. Also make more than one payment each month. This will help in paying off the debt more quickly.
Thanks,
Aaron
$1800 worth of credit card debt is not insurmountable. However, it is important that you pay the balance down as quickly as possible to avoid all of the interest that can build up. My suggestion would be to stop using the credit card all together before the problem gets worse. Agree to a set amount that you both put into savings each month. Use any extra money that you have to put towards your credit card.
pay off debt
Hi miley,
My suggestion would be to stop using the credit card all together before the problem gets worse.
I completely agree to this. If not possible to stop using the cards altogether, one should try minimizing the usage.
Thanks,
Aaron