Got my state tax refund yesterday. Going right into the challenge. I am getting excited about how fast this savings account is growing! I can't wait til I hit $1,000.
And I especially can't wait til I get that $600 refund check. I am trying to decide if I want to throw it all at the CC debt (it would pay off a 1/3 of one of my CCs), add it to my paltry EF, or stick it in this savings. I don't feel too bad about my EF being only $100 or so; I figure if I have an emergency, I can tap into this savings account. Once this on gets big enough, a certain amount will be moved over into my Ef and not touched for anything else, and the rest of this one will be for something special (new laptop, vacation, investing, down payment on a house, who knows?).
I love tbis feeling od saving, but I also know I need to get my butt in gear and pay off the CC debt. When I do, whatever I sent to the CCs can be put in savings each month (at least $300, if not more). And while I know that, and I know keeping a balance on my CCs means I am paying extra money for interest, I think I am scared to pay off the CCs. I know myself, and as long as I have room on the CCs I will use them. It's a bad habit I need to break. But maybe I will just save for a bit, then when I have enough pay off the CCs in one or two big payments, meanwhile continuing to pay on them what I pay now....I knwo it is throwing money away, but...
I think I am afraid of having not enough income to live again and having to rely on help. I don't want to hit that point again - ever. I think having that savings makes me feel more secure, so I am hesitant to use it to pay off the CC debt.
OK, enough introspection for now...
$20 Old Balance: $607.78
State tax refund: $95.10
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$20 New Balance: $702.88
CC Debt vs. Savings
April 29th, 2008 at 07:30 pm
April 29th, 2008 at 08:32 pm 1209497520
I think you are doing great to be kicking up the savings. I know you would do just as well paying off the cc's. It's an even better feeling in my opinion!
You can always call the cc companies and ask them to lower your credit line as you pay off the debt. Also, if you cut them up then there isn't as much temptation to use them again.
April 30th, 2008 at 04:23 pm 1209569024
April 30th, 2008 at 05:05 pm 1209571503
May 1st, 2008 at 03:00 am 1209607229