Should I put money in my SAVINGS or CREDIT CARD?

Question

the extra money I have monthly, is it more important to save or pay off more of my credit cards?

Answer 1

First, save $1000 for emergencies, real emergencies.
Then, list all of your debt from highest to lowest, regardless of interest rate.
Make your minimum payments on all of the bills, except the lowest. Make a larger payment on that one. Find money from wherever you can. Once you pay off the smallest bill, take the money you would normally pay on that bill, and pay it towards the next bill in line, in addition to the min. payment you are already making. This creates a snowball, and once you get it rolling, it accumulates into a big @$$ ball of "payment snow" that can knock out the rest of your debt.

Answer 2

If you don't have some money in savings before starting to pay down the cards, what are you going to do if your car breaks down or something? Most people will put it back on the card they've been paying off. Therefore, save up a little "emergency fund" and then start paying off the credit card. Otherwise, you'll lost motivation in a few months when you're back to where you were with the Credit card because of an emergency. Hope this helps.

Answer 3

Pay off your credit cards. With the CC, you are being charged interest every month, causing you to owe more. Once you that the CCs paid off, THEN put your extra money into a savings account.

The other option is to take PART of the extra money and pay down the CCs, eliminating your debt, and put the other part into a savings account which would EARN you some interest (money). This would be the best of both worlds, however, you will still be paying the interest to the CCs until they are paid off.

Answer 4

Personally, I would pay off the high-interest credit cards before I put money into savings (maybe a little to start a rainy-day fund, but not much).

Look at it this way, if you put the money into savings, the interest on that is nothing compared to the interest on your credit card debt, so you come off worse in the end (i.e. you owe more on your credit cards than you've made with your savings).

I'd pay off the credit cards, cut up the higher-interest ones, and stick to a budget.

Answer 5

Pay the debt first. Don't worry about keeping much in savings for emergencies unless you have a problem of over using your plastic. Credit cards work fine but should only be used for actual credit in an emergency.

Answer 6

Hi,
that's a simple one - pay off the credit cards. The interest rate on the cards is more than likely MUCH higher than you'd get in savings. Even if you have a teaser rate like 0% for six months or something like that, still - pay off the debt. Teaser rates don't last forever and when they go up, you can get behind really fast.

Good luck !
Andy

Answer 7

Pay off your credit cards first. The interest rate will cost you more on credit than you'll earn in the bank.

Answer 8

credit card

Answer 9

CREDIT CARD

Answer 10

pay debt....savings account don't come close