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Home > Help! Do I use the EF$ or the CC???

Help! Do I use the EF$ or the CC???

November 2nd, 2006 at 06:25 pm

OK, here is my dilema:

I need to buy a plane ticket. It will only be about $150, tops. Originally, my $20 account was earmarked for something I really wanted, like a new tattoo. Lately, however, I've been thinking of it as my EF that I am trying to build up. Here's my question:

Do I take the $ for the plane ticket out of the EF and then replace it later, or do I just put the plane ticket on my CC and pay it off later?

I'm thinking with the interest on the CC, financially, it would be smarter to use the $ in my EF. I should be able to pay it off when I get paid tomorrow, so it shouldn't acrue any any interest. However, there is the chance I won't be able to pay it off right away, and it will acrue interest. But there is something about using that money for something other than an emergency that I really don't like.

Opinions please?




Also, a small addition to the EF via interest paid in October:

ING Account (aka $20 Challenge) Old Total: $365.17
Added: $1.04
New Total: $366.21

Posted in | 5 Comments »

5 Responses to “Help! Do I use the EF$ or the CC???”

  1. tinapbeana Says:
    November 2nd, 2006 at 06:31 pm 1162492273
    1162492273

    IMO, the EF should be left for E's... plus, 'borrowing' the money from yourself might make you just a bit less likely to pay it back quickly since there's no risk of paying interest (just lossing interest). i guess it depends on which you're more likley to do: pay off the credit card to keep from being charged interest or pay back the EF so you'll be able to earn interest...

    going straight by the numbers says to put it on the CC and pay it before it accrues any interest, that way you're not losing any money (interest on the EF) in the process.

  2. Thrifty Ray Says:
    November 2nd, 2006 at 07:40 pm 1162496458
    1162496458

    If you are SURE you will pay the CC off before interest accumulates, use your cc.

    If you are worried about not paying before interest accumulates on the CC..I would say use the EF.

    If you use the EF, you might consider making up a contract with yourself- how much you'll pay and when. Then stick to it.

    If you use your EF, you can always fall back on the CC if an emergency comes up...but in the meantime, youre not dealing with all of the mental turmoil of having a balance on the card!

  3. Amber Says:
    November 2nd, 2006 at 08:12 pm 1162498361
    1162498361

    Me personally I would use the money saved...only because my goal is to use cash for what ever I can

  4. koppur Says:
    November 2nd, 2006 at 08:16 pm 1162498571
    1162498571

    *sigh* Hopnestly, I don't like it either way. But I am ordering the ticket online so it is cheapest (Southwest as awesome internet deals) so I need to use some type of CC card. I am actually putting it on the CC, but the question is do I make an immediate paymet to cover the cost from the EF funds or do I wait until I have a bit of non-EF funds and pay it off. I guess, in reality, it doesn't matter since it is a matter or a payment to the CC via the EF today or a payment to the CC via regualr funds on Monday...I just stress so much about not having an EF and about having a cc balance. :P

  5. jersey jen Says:
    November 3rd, 2006 at 02:20 am 1162520406
    1162520406

    it looks like yo have CC debt already. the best is: use a CC that you have no balance on it, then pay it off when statement is due. next is: use EF. don't use CC with balance already.

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