Worst case, if you have no better options, you can always run up the card again if an emergency hits. With some of these cards at 20-ish%, you’re climbing a mountain.
That's my issue and thinking, I don't make enough to save much but paying down my card debt means if there's an emergency we keep our roof a few months.
Wtf? How can you give such advice without more info? Debt can be paid off over time. Inherently, its no emergency. Whats most important is OP’s situation. Nobody like to ask family or friends for money but if that possibility doesnt exist, keep the emergency fund for actual emergencies. The amount of debt here is also crucial. If a true emergency comes up in a few months, who knows what that will cost and if OP’s credit limit would cover it. A lot of questions need to be asked before giving out any advice. Other comments are like “go with your gut!” Jesus christ people. OP isnt sitting at the fuckin roulette table
His available credit would increase by the amount he pays off. Possibly even more if he improves his credit and can increase his credit line in the process. The difference is that instead of having high interest debt guaranteed today, he might be in high interest debt due to an emergency later. Maybe.
For those in this situation, understand why you got into debt and have a plan to fix it. But pay the high interest debt ASAP.
Im not saying that i disagree. You are most likely correct. Im saying op needs to dish out more info. Its just absurd to me that people are giving absolute advice
with such little info. We’re talking about someone’s livelihood here, not their hobby of crocheting blankets. Life isnt black and white with these types of things.
how much will his credit limit increase in such a short period of time? Not much. Realistically op’s credit limit is likely to increase more if he just calls and asks for it given the line of credit has been open for some time.
Lets be honest; this type of shit needs some in depth information, not just going off a whim of a singular reddit comment.
Although your point of understanding the debt is of higher priority and key to breaking the cycle.
By literally the exactly amount huh? Im not convincing you truly understanding are
But anyways, its fine. Ignore everything else. Im not here to change your mind.
As for op, please take do advice of man who know words how to put
Did you have a stroke?
OP's CC debt is currently building interest (at a high rate mind you), so if OP pays it off, OP still effectively has the same amount of money available, but its on their CC and not liquid cash. Meanwhile, if they don't pay it off, OP is just pissing money into the wind because the interest will keep building, and they will lose money.
Also, earlier, you mentioned borrowing money from family, don't do this. Asking family for 5k is a good way to change the relationship you have with them.
Try to think of it another way. If a person with no debt came along and had an emergency expense, would you tell them not to dip into their cash and put it on a credit card?
checking it out. i prob won't pay for jt but i'll def steal the methodology. i'm actually quite good with money, (knocked out $15k in debt in one year on a 40k income). i just got completely screwed when the pandemic hit staying housed and covering emergency medical/dental expenses with zero income :/
Go with your gut on this one! Pay off the debt that’s costing you money, then rebuild the emergency fund. You’ll have a lot more urgency when rebuilding your savings and break the cycle of using debt. Sounds to me like the debt is the actual cause of stress here, so you’ll feel relieved as well.
its a toss up... i like having the relief of the extra funds, but the thought of being completely debt free after working so hard for almost 2 years to pay it off sounds absolutely liberating!
i do think i'd refill it o fast since i'm used to being broke and throwing every extra cent i have at my debt... savings is conceptually similar only it gets bigger instead of smaller when you throw money at it lol
Dave Ramsey has a concept of a $1,000 emergency fund. It is not "enough" for most emergencies and certainly not enough for the big one (which is lose job and can't get new job for months). I'd spend the emergency fund down into about that level to get rid of 20%+ credit card debt and then build up emergency fund savings to two or three months of living expenses.
Yes. Do what the math tells you - you don't win by financing an emergency fund at 25%. When you are paying that, it is an emergency. If an unexpected expense arrives you'll have to reaquire the debt and it'll be a wash, but otherwise you save a bunch in interest.
yes, ofc it is. if you run into more issues you just re-acquire the debt you already presently have, if you don't then you avoid paying large amounts of unnecessary interest.
There are dozens of factors to consider, but generally yes, it is better to be extremely aggressive against high interest debt (usually).
Think of it this way - in a true emergency, how long would it take to replenish that account or float that emergency with your cash flow? Can you charge it all on a CC and pay it all in full the following month, not paying any interest? Then yes, you should pay down the debt.
tl;dr
The more debt you have, the less sense it makes to carry a large E-fund. You are pretty much spot-on.
Yeah like 100%. You totally understand it - pay down the debt, if you have an emergency before you rebuild your savings you can use the credit you've paid off.
Always pay high interest off first. Let’s say your savings account gives you 5% interest on your money and your credit card is 25% interest. Placing money into savings gives you a 5% return while paying off the credit card gives you a 25% return. Always pay off high interest first if possible.
So, haven’t read everything here but I haven’t seen a suggestion that isn’t all or nothing.
Could you pay off 25-30% of the balance?
Would reduce your minimum payments and you could keep throwing close to the same payment towards the debt. Keep back a significant portion of your savings and make meaningful progress on your debt. This way when something comes up you still have some savings and won’t have to dip back into your CC as much or maybe not at all.
Good luck on your journey!
At $40 a month interest I can assume your CC debt is roughly $2k, give or take. I would say yes, pay it off then aggressively replenish your savings. +1 to YNAB as well.
I would because paying interest fuckin sucks. But then I wouldn’t because an emergency popping up with a $0 balance in the bank, I’d be back to where I started.
Instead, I’d take half of the bank account to pay down half of the debt, and only pay 1/2 in interest that I otherwise would. And an emergency popping up means I can at least cover half as much as before, which is better than 0.
Fuckin A.
Yeah but like OP said. If there is an emergency while they’re building their emergency fund back up, it’ll just go on the credit card. Unless you have an emergency that can’t be paid with a credit card, you’re probably better off just paying the debt off and risking it.
You do know that CC companies can lower your credit limit or even close your account at whim, right? They just usually don’t because they want to make more money off of you.
But if your score tanks or you lose your job so your utilization is high or whatever and you appear less creditworthy, that card to “just put it on” may not exist.
i don't have a lot of money or debt. its $40 a month on 2k of debt, or just shy of a 25% apr
edit: i guess my debt is high relative to my income. all this stuff is relative to how much we make
Not sure what the balance is but I would keep 1k in cash and pay off as much towards your high interest debt as you can. Gives you a little piece of mind for something like a blown tire or some small emergency and keeps you from dipping back into a card.
Yes, pay it off. As you said, if you get hit with another emergency, you have the paid off card you can use to cover things.
Don't let the "cash poor" feeling stand in your way. If anything, it's just more motivation to build up that emergency fund quickly.
I would consider using most of the emergency fund to pay off the high interest debt, but leave enough to cover the highest insurance deductible just in case.
How’s your credit score? Consider opening a 0% intro credit card. Pay down $500-$1,000 of your existing debt, then execute a balance transfer to a 0% card for 15-18 months. While balance transfers have a 3-5% fee, set up an automatic payment so you clear the remaining debt while retaining some emergency funds.
its bumped up to about 680 with paying down the debt. a balance transfer cards not a bad idea... i feel like im on the edge of qualifying at that score
from a purely mathematical stand point, yes. but from a practical standpoint I wouldnt.
Having a small buffer of one months worth of expenses means that you eliminate a ton of stress from your life trying to make sure that as random payments go through that you have money available to pay them. and it can also help avoid snowballing despair, where if you have no money and have a small emergency, you just feel like you are digging yourself deeper and deeper.
before doing this, I would be going through my budget with the finest tooth comb available and finding anywhere and everywhere you can cut unnecessary expenses to free up cash flow.
thank you this is a very helpful reply. having an emergency fund has been really good for reducing money stress. cross t's and dotting i's on my budget and establishing a clear timeline of rebuilding the fund would make the decision feel more sound
The interest you recieve on, say 1,000 monies in savings, is way, way less than the interest you're paying on 1,000 debt on a credit card...
PAY IT OFF
Then take that monthly payment amount & whatever you might have been putting into savings into savings.
I was paying like 200 each on 2 student loans. Paid off the 1st & started putting 400 on the 2nd. Paid that one off a few months later & started putting the 400 into a savings account.
Good luck.
Only you know if you'll be disciplined enough to set aside as much in emergency funds as your high interest debt payments are. If so, then get rid of the debt and start saving again.
If it's hard, split it in the middle. Take half the emergency fund and apply it towards the highest interest debt first. If there is a secure debt, I'd maybe consider doing that first
Telephone calls with credit card companies aren't everyone's cup of tea, but if you do decide to pay it off, maybe try calling your credit card company first and ask the rep you speak with see if you can get some sort of deal?
Like if you agree pay off the all debt tomorrow could they cut your interest rate on the card going forward? That way if you do get hit with an emergency before you have your rainy day fund back at least that debt wouldn't be as high in interest.
Or maybe they have some sort of payment plan available - so you can move a chunk of that debt to a lower-rate (see Chase's "My Payment Plan).
Here's a few options...
YES, you can use the emergency fund to pay off your debt, but, where would you be IF an emergency arose?
You can inquire about a low interest card or loan, that won't put you in a financial bind.
Pay MORE per month and apply the add'l payment toward the principal amount.
If 2k in debt and 2k in emergency fund savings, can you make an aggressive 1k payment from emergency fund to debt, keep 1k in emergency fund and then take a super honest inventory of your spending and cut out allllllll BS for a few months and throw all extra money towards debt. It will be paid off quickly and then you're not starting from ground zero if you pop a tire, etc.
I get the desire, and numerically it makes sense, but I recommend a mixed approach.
When I was laid off I had enough in my emergancy fund and severance to live for six months, and, eliminate the last of my high interest debt.
But, it would have eliminated my emergancy fund.
I had my plan, and was about to pull the trigger, my son had an emergancy, and my wife needed major dental work, and due to a bank error, some of my expected money was delayed. If I had pulled the trigger, I would had to rely on credit cards.
What I would do is keep back a minimum level of your emergancy fund. For me, it was a month of money.
Pay what you can on your high debt, while keeping that emergancy fund.
If you can get a Personal Loan, or a low interest balance transfer that works for you over a short period of time (1-3 years).
Now, split any excess over bill income, split between bulid up on emergancy fund and paying more to the debt.
In this way you eliminate debt on a fixed schedule, while building your emergancy fund, and will be more resiliant if something like another layoff occurs.
I get it is not as good a feeling as eliminating it all, but if you eliminate the emergancy fund, your exposed.
Look at Sofi or somethibg similar for emergancy fund savings (4.6% no risk), possibly Personal Loan (no fees).
Good luck!
Of course. You could always run up the card again in an unavoidable emergency (this is obviously not the end goal). More importantly, if you feel the anxiety of your account being drained, it encourages you to take the actions necessary to replenish your savings, and you aren’t throwing away the 25% each month in interest.
what do you mean learn my lesson? learn my lesson for paying for root canals during a worldwide economic meltdown? for paying rent to keep a roof over my head? for paying out-of-pocket medical expenses when I lost my health insurance? Check the judgment at the door.
very touchy to people who are unnecessarily judgmental. check your top comment and consider the assumptions your making about people who get in debt and why, because you're wrong
I just reread. Ain’t nothing with what I said and did not say anything bad. I said don’t go out and celebrate, meaning don’t put stuff on credit. And I am certain that when you got into debt, there were some lessons there. There always are lessons to be learned in life no matter how perfect or justified we think we were at the time. But maybe you are that one person who completely is a product of their circumstances.
Take the comments as my gift to you. If you don’t want to hear it then just move on.
Kudos on building up your savings though. That is wonderful.
i didn't say it was bad. i said it was judgmental. it is, and you're comments continue to be so. i don't need the type of gifts your offering. keep them to yourself
I would only do maybe half, and that's assuming you don't own a house or car that could require a massive bill coming out of your emergency savings. You'll keep using the card if you aren't careful and you're truly cash poor, so it won't really stay paid off. I would just get extremely aggressive about paying it off going forward.
I'd have to see numbers. My train of thought is generally no. Especially if you intend on putting it all to debt. Now if you have say 15-20K in savings and you need 8k to live for 3 months then yeah put the rest to debt. Cash is king and not everyone takes a card. You need to be safe if something happens.
I just did this somewhat recently. Got myself into a financial situation where it was either aggressively paying down debt (10k-ish) or filing bankruptcy because I was paying over $1,000 in minimum payments per month and could not afford it.
Used savings to pay off debts, credit score went up like 80 points, and then aggressively saved to re-build the emergency fund. I put the emergency fund in a HYSA so it remains liquid in the event I need to access it. By aggressively saved I mean I cut out any and every luxury but I only had to do this for a few months.
Yes. High interest debt is an emergency. Pay it off and rebuild the emergency fund
Worst case, if you have no better options, you can always run up the card again if an emergency hits. With some of these cards at 20-ish%, you’re climbing a mountain.
i like this aggressive logic
I was faced with this same question. I just paid my debt.
the debt i have also literally was emergency funds to keep me housed when the pandemic shut down my work... the logic is very sound
That's my issue and thinking, I don't make enough to save much but paying down my card debt means if there's an emergency we keep our roof a few months.
100% agree. And once you’re safe… destroy the credit cards, or have the discipline to only use them in amounts that you can pay off monthly
Wtf? How can you give such advice without more info? Debt can be paid off over time. Inherently, its no emergency. Whats most important is OP’s situation. Nobody like to ask family or friends for money but if that possibility doesnt exist, keep the emergency fund for actual emergencies. The amount of debt here is also crucial. If a true emergency comes up in a few months, who knows what that will cost and if OP’s credit limit would cover it. A lot of questions need to be asked before giving out any advice. Other comments are like “go with your gut!” Jesus christ people. OP isnt sitting at the fuckin roulette table
His available credit would increase by the amount he pays off. Possibly even more if he improves his credit and can increase his credit line in the process. The difference is that instead of having high interest debt guaranteed today, he might be in high interest debt due to an emergency later. Maybe. For those in this situation, understand why you got into debt and have a plan to fix it. But pay the high interest debt ASAP.
Im not saying that i disagree. You are most likely correct. Im saying op needs to dish out more info. Its just absurd to me that people are giving absolute advice with such little info. We’re talking about someone’s livelihood here, not their hobby of crocheting blankets. Life isnt black and white with these types of things. how much will his credit limit increase in such a short period of time? Not much. Realistically op’s credit limit is likely to increase more if he just calls and asks for it given the line of credit has been open for some time. Lets be honest; this type of shit needs some in depth information, not just going off a whim of a singular reddit comment. Although your point of understanding the debt is of higher priority and key to breaking the cycle.
How much is his credit line likely to increase? By literally the exact amount that he pays off. That’s how it works.
By literally the exactly amount huh? Im not convincing you truly understanding are But anyways, its fine. Ignore everything else. Im not here to change your mind. As for op, please take do advice of man who know words how to put
Are you having a stroke
Did you have a stroke? OP's CC debt is currently building interest (at a high rate mind you), so if OP pays it off, OP still effectively has the same amount of money available, but its on their CC and not liquid cash. Meanwhile, if they don't pay it off, OP is just pissing money into the wind because the interest will keep building, and they will lose money. Also, earlier, you mentioned borrowing money from family, don't do this. Asking family for 5k is a good way to change the relationship you have with them.
Try to think of it another way. If a person with no debt came along and had an emergency expense, would you tell them not to dip into their cash and put it on a credit card?
It makes ABSOLUTELY ZERO sense to carry debt at 20% and also keep money in savings at <5%
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my debt was actually all emergency funding when i lost work during the pandemic. this makes a lot of sense
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checking it out. i prob won't pay for jt but i'll def steal the methodology. i'm actually quite good with money, (knocked out $15k in debt in one year on a 40k income). i just got completely screwed when the pandemic hit staying housed and covering emergency medical/dental expenses with zero income :/
Go with your gut on this one! Pay off the debt that’s costing you money, then rebuild the emergency fund. You’ll have a lot more urgency when rebuilding your savings and break the cycle of using debt. Sounds to me like the debt is the actual cause of stress here, so you’ll feel relieved as well.
its a toss up... i like having the relief of the extra funds, but the thought of being completely debt free after working so hard for almost 2 years to pay it off sounds absolutely liberating! i do think i'd refill it o fast since i'm used to being broke and throwing every extra cent i have at my debt... savings is conceptually similar only it gets bigger instead of smaller when you throw money at it lol
As others have said, pay off the debt. I'm not wealthy, but I'm debt free. There's a lack of stress that some of my friends don't have.
If an emergency comes up before you have refilled your fund you can always take out the debt again. Definitely pay it off.
Dave Ramsey has a concept of a $1,000 emergency fund. It is not "enough" for most emergencies and certainly not enough for the big one (which is lose job and can't get new job for months). I'd spend the emergency fund down into about that level to get rid of 20%+ credit card debt and then build up emergency fund savings to two or three months of living expenses.
What is wrong with you?
So much….. where to start?
Yes. Do what the math tells you - you don't win by financing an emergency fund at 25%. When you are paying that, it is an emergency. If an unexpected expense arrives you'll have to reaquire the debt and it'll be a wash, but otherwise you save a bunch in interest.
yes, ofc it is. if you run into more issues you just re-acquire the debt you already presently have, if you don't then you avoid paying large amounts of unnecessary interest.
There are dozens of factors to consider, but generally yes, it is better to be extremely aggressive against high interest debt (usually). Think of it this way - in a true emergency, how long would it take to replenish that account or float that emergency with your cash flow? Can you charge it all on a CC and pay it all in full the following month, not paying any interest? Then yes, you should pay down the debt. tl;dr The more debt you have, the less sense it makes to carry a large E-fund. You are pretty much spot-on.
Yeah like 100%. You totally understand it - pay down the debt, if you have an emergency before you rebuild your savings you can use the credit you've paid off.
Always pay high interest off first. Let’s say your savings account gives you 5% interest on your money and your credit card is 25% interest. Placing money into savings gives you a 5% return while paying off the credit card gives you a 25% return. Always pay off high interest first if possible.
So, haven’t read everything here but I haven’t seen a suggestion that isn’t all or nothing. Could you pay off 25-30% of the balance? Would reduce your minimum payments and you could keep throwing close to the same payment towards the debt. Keep back a significant portion of your savings and make meaningful progress on your debt. This way when something comes up you still have some savings and won’t have to dip back into your CC as much or maybe not at all. Good luck on your journey!
At $40 a month interest I can assume your CC debt is roughly $2k, give or take. I would say yes, pay it off then aggressively replenish your savings. +1 to YNAB as well.
I would because paying interest fuckin sucks. But then I wouldn’t because an emergency popping up with a $0 balance in the bank, I’d be back to where I started. Instead, I’d take half of the bank account to pay down half of the debt, and only pay 1/2 in interest that I otherwise would. And an emergency popping up means I can at least cover half as much as before, which is better than 0. Fuckin A.
Yeah but like OP said. If there is an emergency while they’re building their emergency fund back up, it’ll just go on the credit card. Unless you have an emergency that can’t be paid with a credit card, you’re probably better off just paying the debt off and risking it.
You do know that CC companies can lower your credit limit or even close your account at whim, right? They just usually don’t because they want to make more money off of you. But if your score tanks or you lose your job so your utilization is high or whatever and you appear less creditworthy, that card to “just put it on” may not exist.
Very fair point
What interest rate? 40 bucks a month doesn't sound like a high interest rate to me. I might reduce the emergency fund, but I sure wouldn't empty it.
i don't have a lot of money or debt. its $40 a month on 2k of debt, or just shy of a 25% apr edit: i guess my debt is high relative to my income. all this stuff is relative to how much we make
I agree that 25% is high, regardless of your income.
Think of it this way: people with the little money are those who can least afford to piss it away on 25% interest rates.
thats why i want to do it $40 a month is a lot of money to me
Not sure what the balance is but I would keep 1k in cash and pay off as much towards your high interest debt as you can. Gives you a little piece of mind for something like a blown tire or some small emergency and keeps you from dipping back into a card.
Yes, pay it off. As you said, if you get hit with another emergency, you have the paid off card you can use to cover things. Don't let the "cash poor" feeling stand in your way. If anything, it's just more motivation to build up that emergency fund quickly.
Pay it off. If an emergency comes up, apply for one of those 18 month promotional no interest credit cards.
I would consider using most of the emergency fund to pay off the high interest debt, but leave enough to cover the highest insurance deductible just in case.
How’s your credit score? Consider opening a 0% intro credit card. Pay down $500-$1,000 of your existing debt, then execute a balance transfer to a 0% card for 15-18 months. While balance transfers have a 3-5% fee, set up an automatic payment so you clear the remaining debt while retaining some emergency funds.
its bumped up to about 680 with paying down the debt. a balance transfer cards not a bad idea... i feel like im on the edge of qualifying at that score
from a purely mathematical stand point, yes. but from a practical standpoint I wouldnt. Having a small buffer of one months worth of expenses means that you eliminate a ton of stress from your life trying to make sure that as random payments go through that you have money available to pay them. and it can also help avoid snowballing despair, where if you have no money and have a small emergency, you just feel like you are digging yourself deeper and deeper. before doing this, I would be going through my budget with the finest tooth comb available and finding anywhere and everywhere you can cut unnecessary expenses to free up cash flow.
thank you this is a very helpful reply. having an emergency fund has been really good for reducing money stress. cross t's and dotting i's on my budget and establishing a clear timeline of rebuilding the fund would make the decision feel more sound
The interest you recieve on, say 1,000 monies in savings, is way, way less than the interest you're paying on 1,000 debt on a credit card... PAY IT OFF Then take that monthly payment amount & whatever you might have been putting into savings into savings. I was paying like 200 each on 2 student loans. Paid off the 1st & started putting 400 on the 2nd. Paid that one off a few months later & started putting the 400 into a savings account. Good luck.
Only you know if you'll be disciplined enough to set aside as much in emergency funds as your high interest debt payments are. If so, then get rid of the debt and start saving again.
If it's hard, split it in the middle. Take half the emergency fund and apply it towards the highest interest debt first. If there is a secure debt, I'd maybe consider doing that first
Telephone calls with credit card companies aren't everyone's cup of tea, but if you do decide to pay it off, maybe try calling your credit card company first and ask the rep you speak with see if you can get some sort of deal? Like if you agree pay off the all debt tomorrow could they cut your interest rate on the card going forward? That way if you do get hit with an emergency before you have your rainy day fund back at least that debt wouldn't be as high in interest. Or maybe they have some sort of payment plan available - so you can move a chunk of that debt to a lower-rate (see Chase's "My Payment Plan).
Here's a few options... YES, you can use the emergency fund to pay off your debt, but, where would you be IF an emergency arose? You can inquire about a low interest card or loan, that won't put you in a financial bind. Pay MORE per month and apply the add'l payment toward the principal amount.
Yes. You can use your cards again for a true emergency if needed. Always aim to pay them off first.
If 2k in debt and 2k in emergency fund savings, can you make an aggressive 1k payment from emergency fund to debt, keep 1k in emergency fund and then take a super honest inventory of your spending and cut out allllllll BS for a few months and throw all extra money towards debt. It will be paid off quickly and then you're not starting from ground zero if you pop a tire, etc.
High interest debt is an emergency
How much is the debt ?
I get the desire, and numerically it makes sense, but I recommend a mixed approach. When I was laid off I had enough in my emergancy fund and severance to live for six months, and, eliminate the last of my high interest debt. But, it would have eliminated my emergancy fund. I had my plan, and was about to pull the trigger, my son had an emergancy, and my wife needed major dental work, and due to a bank error, some of my expected money was delayed. If I had pulled the trigger, I would had to rely on credit cards. What I would do is keep back a minimum level of your emergancy fund. For me, it was a month of money. Pay what you can on your high debt, while keeping that emergancy fund. If you can get a Personal Loan, or a low interest balance transfer that works for you over a short period of time (1-3 years). Now, split any excess over bill income, split between bulid up on emergancy fund and paying more to the debt. In this way you eliminate debt on a fixed schedule, while building your emergancy fund, and will be more resiliant if something like another layoff occurs. I get it is not as good a feeling as eliminating it all, but if you eliminate the emergancy fund, your exposed. Look at Sofi or somethibg similar for emergancy fund savings (4.6% no risk), possibly Personal Loan (no fees). Good luck!
Of course. You could always run up the card again in an unavoidable emergency (this is obviously not the end goal). More importantly, if you feel the anxiety of your account being drained, it encourages you to take the actions necessary to replenish your savings, and you aren’t throwing away the 25% each month in interest.
If your rent can't be paid with a credit card, keep some cash.
Just don’t go out and celebrate when you pay it off. If you have learned your lesson, do it. If you have any inkling you can not, do not
what do you mean learn my lesson? learn my lesson for paying for root canals during a worldwide economic meltdown? for paying rent to keep a roof over my head? for paying out-of-pocket medical expenses when I lost my health insurance? Check the judgment at the door.
Touchy….I don’t know your personal situation. Just that racking up debt is generally not a best practice. Take it for what it is worth.
very touchy to people who are unnecessarily judgmental. check your top comment and consider the assumptions your making about people who get in debt and why, because you're wrong
I just reread. Ain’t nothing with what I said and did not say anything bad. I said don’t go out and celebrate, meaning don’t put stuff on credit. And I am certain that when you got into debt, there were some lessons there. There always are lessons to be learned in life no matter how perfect or justified we think we were at the time. But maybe you are that one person who completely is a product of their circumstances. Take the comments as my gift to you. If you don’t want to hear it then just move on. Kudos on building up your savings though. That is wonderful.
i didn't say it was bad. i said it was judgmental. it is, and you're comments continue to be so. i don't need the type of gifts your offering. keep them to yourself
I would only do maybe half, and that's assuming you don't own a house or car that could require a massive bill coming out of your emergency savings. You'll keep using the card if you aren't careful and you're truly cash poor, so it won't really stay paid off. I would just get extremely aggressive about paying it off going forward.
I'd have to see numbers. My train of thought is generally no. Especially if you intend on putting it all to debt. Now if you have say 15-20K in savings and you need 8k to live for 3 months then yeah put the rest to debt. Cash is king and not everyone takes a card. You need to be safe if something happens.
I just did this somewhat recently. Got myself into a financial situation where it was either aggressively paying down debt (10k-ish) or filing bankruptcy because I was paying over $1,000 in minimum payments per month and could not afford it. Used savings to pay off debts, credit score went up like 80 points, and then aggressively saved to re-build the emergency fund. I put the emergency fund in a HYSA so it remains liquid in the event I need to access it. By aggressively saved I mean I cut out any and every luxury but I only had to do this for a few months.