We are looking into buying a co-op/condo. Since I do not plan on living in NY forever we decided its a wate of time to put ourselves through the stress of a house. So my question is, we have credit card bills but we dont have any car payments so that balances things out I would assume. Should we try to pay off the credit cards or keep the money in the bank?
cluelessbride
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Re: Better. Money in the Bank or Pay bills?
Where is the rate higher?
If you are paying 10% on your cc bills, but are only making 2% in the bank, then pay off the bills.
If you are able to make a greater return on your savings or investments than you are paying on the interest of your debt, then pay a little debt but keep making the $ in savings/investments.
fallinlove04
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Re: Better. Money in the Bank or Pay bills?
i would say save what you can, but pay off your debts. the interest kills you on credit cards. you aren't going to make in the bank what you pay in interest. think of it this way, the faster you pay off the debt, the faster you can really save money. an improtant thing to do is to really be concious about using credit cards to pay for things. my fi only use it for the points, but we make sure to pay it off every month.
butterfly20
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Re: Better. Money in the Bank or Pay bills?
paying off debt is more important i think
swags1016
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Re: Better. Money in the Bank or Pay bills?
Definitely get rid of the Debts!
MrsTC
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Re: Better. Money in the Bank or Pay bills?
We paid 90% of our credit card debt off and then saved for a house. Having a lower debt ratio helped us get approved for the house.
Bebalina
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Re: Better. Money in the Bank or Pay bills?
always get rid of the credit card bills.....in the long run u'll be better off
Kriss2c
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Re: Better. Money in the Bank or Pay bills?
pay off the debt first. Perfect credit can only help you.
