$ question - debt vs. savings

I guess this is sort of wedding related, as I am going over all the expenses of little things that I am sure will add up for the wedding. Not vendors, but all the little extras that once you start thinking about them will make your head spin.

So my question is, how much would you feel comfortable having left in your savings acct in order to use some of the money that is in there now to pay off debt? I know its a total oxymoron, but I have this thing about deducting from my savings even if its to pay off cc debt!!! i just feel like i worked so hard to save that amount, and then if i put it ALL towards debt, I will surely have a panic attack.

I'm not trying to get personal here with other people's finances, I am just looking for some insightful advice or direction for my own. Thanks!

I would say half...I usually wait til the end of the month, and whatever money I have in savings, I put half of it towards my cc's. That way you have savings in case something happens and you need to use it, but you are still paying down the debt. Every little bit helps, but you also don't want to leave yourself high and dry in case of an emergency. HTH

i personally don't like to use my savings to pay off debt. here's how i do it:

i break my bills up weekly so i know when what is due. every week i put a certain percentage into my savings. then i pay my bills and any other misc expenses that come up like dog grooming, gas, groceries, ect. whatever is left over by my next pay check i either put into savings or pay off debt or divide it and do both. i also try to pay off one card at a time especially the ones with higher interest rates.

Hmm....I rather go into my savings to pay off all of my debt. This way I know that I'm no longer debt free, I don't owe anyone money, and anything i save thereafter, is ALL MINE and none to give away.

I had to do this, where I was $5,000 on debt. I reached into my savings to pay it off. I felt horrible pulling all that money out, but it allowed me to save SO much more money knowing that I don't have to give it away to cc companies.

For me it was like I had a huge weight lifted off my shoulders.

starting to feel really really overwhelmed

BeLissa Re: $ question - debt vs. savings

starting to feel really really overwhelmed



aw, sorry. you just have to figure out what works better for you. it also depends on your pay, your debt, expenses, and interest both paying and earning. i'm sure you'll make the best decision for you. why not talk to your FH about it and maybe you can both come up with an answer.

We're trying to save as much as we can too, so I know what you're going through!

I've tried to follow what Suze Orman suggests for my 2 credit cards and 1 is totally paid off now. Even though I'm not a fan of hers, (her condescending attitude irritates me!!!), she has really sound financial advice. Pay off the debt that has the highest interest rate first, then when you pay off that debt, use the $$ that you would have put towards that first debt to help pay off the next highest interest rate debt. She and most financial planners advise never paying just the minimum due, but rather always paying the most you can because otherwise it would take years to pay off the entire debt. I wouldn't totally drain my savings to pay off the debt immediately, even though I could probably do that, because I'd be worried what I'd do if an emergency happened. So pay off what you can, because in the long run, you're spending more $$ in finance charges/interest rates than you are gaining in interest by having the savings in the bank. I've also heard her say something about not buying things for the house/apt and use that $$ to pay off the debts first.

HTH!

I was using large chunks of savings $ to lessen my debt but it didn't make much of a difference. So then I paid off more than the minimum (suze o) as much as I could and then used my tax refund to pay it all off. It feels great!

And now, everything is regular bills and wedding debt. I'm also looking into a better, rewards credit card with a lower interest...

Can't you also try calling the cc comp and request a lower interest rate to help you pay? just wondering, didn't actually do this.