2006-07-02 03:37:02 · 28 answers · asked by pearls256 1 in Business & Finance ➔ Personal Finance
Apply it toward your credit debt. You're probably paying a higher percentage of interest on that debt than what you can get on any kind of a savings account.
2006-07-02 03:41:10 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Sir J nailed it - if you have no savings for emergencies, keep the $1000 (or at least a good chunk of it). If you pay off the card and an emergency comes up, you'll use the card to take care of it and be right back where you were. If you have an emergency fund, you can take care of the emergency from there without having to ruin your debt pay-off plan.
Emergencies WILL happen, but they're a WHOLE lot easier to deal with if you are financially prepared.
If you already have $500-1000 in savings for emergencies, put it all on the debt.
2006-07-02 11:09:55 · answer #2 · answered by homeschoolmom 5 · 0⤊ 0⤋
Apply it towards credit card debt. Your financial aim should be to get out of debt like credit card debt, which is expensive, and is the worst kind to have (unless you have a 0% APR), which seldom helps in growing your business if used on a long-term basis. Some debt, some of the time is useful, because it helps in smoothing over temporary cash flow issues while ensuring that you do not lose business opportunities at such times. If your credit card debt is for personal items, it means that you are wasting your business resources. If the credit card debt is for business purposes, it means that you are not able to generate enough cash to run your business - that is not a good sign.
2006-07-02 03:46:38 · answer #3 · answered by ash 3 · 0⤊ 0⤋
You should pay off your debt. You are paying more in interest on the credit card than you are on the 1,000 in the savings account. It is always a good idea to have a fund to fall back on if you get into dire straights. Such as, if you have no work for a week or two. You should concentrate your efforts on paying the credit card off. You may want to consider paying 750.00 on the credit card and leave the balance in savings.
2006-07-02 03:46:20 · answer #4 · answered by buttermilkroad1 1 · 0⤊ 0⤋
You must apply it for credit debt if you are going to purchase goods for business as you earn and make your money multiply and earn profit but if you tend to use your credit card for shopping and other luxury activities forget about it! My suggestion is that, use you $1,0000 for an additonal business investment or if you are not a businessminded person save it on the bank!
2006-07-02 03:44:16 · answer #5 · answered by tutax 4 · 0⤊ 0⤋
Pay it towards your credit debt - you'll save a lot more on interest than you will get in interest. It will also improve your credit rating.
2006-07-02 03:41:16 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Depending on the interest rate on your debt, and if you might need that $1000 for business related expenses, you definitely are better off paying off the debt.
2006-07-02 03:43:45 · answer #7 · answered by diogenese19348 6 · 0⤊ 0⤋
assuming that you have enough cash on hand for emergencies, paying down debt is almost always the best option. Also - do your homework on balance transfers - I've saved a lot of money by continuously seeking out 0% balance transfer promotions and then transferring again when time of promotion runs out.
2006-07-02 03:42:24 · answer #8 · answered by JJJJJJJJim 3 · 0⤊ 0⤋
save 1/2, use the other half to pay off debts.
2006-07-02 03:42:39 · answer #9 · answered by blueyedbabyluv 2 · 0⤊ 0⤋
Pay off the card that has the highest interest, or pay some on all so that the balances are at 30% of the spending limit, it will reflect good on your credit.
2006-07-02 03:41:31 · answer #10 · answered by bopbo 3 · 0⤊ 0⤋