Savings is earning a 6% until the end of april. I wanna pay of my credit cards , (Not all at once )One credit card the finace charge is 50.00 a month . I need suze orman to answer this ..Ok I wish
2007-03-10 00:37:38 · 16 answers · asked by Suzi-q 1 in Business & Finance ➔ Personal Finance
You are paying more in interest on those credit cards then you are earning on the savings account.
Are you earning $50 a month on your savings? Not unless you have a whole lot of money saved up in that account.
You have a net loss here. Pay off the credit cards. It will help your credit score and give you even more money to put into savings.
2007-03-10 00:43:13 · answer #1 · answered by Faye H 6 · 0⤊ 0⤋
Suze Orman would most likely say pay off those credit cards unless you can get those finance charges down to zero.
I can understand the need for a savings cushion but the finance charges are way too high. IF that credit card debt gets too high, you might not be able to get out of it.
2007-03-10 13:03:01 · answer #2 · answered by Loan Agent - San Francisco 1 · 0⤊ 0⤋
The savings that you have can earn you 6%, but the interest you are paying on your credit cards is probably 18% or higher.
It makes the most financial sense to pay off the credit cards before having significant savings.
2007-03-10 08:57:22 · answer #3 · answered by Anonymous · 0⤊ 0⤋
DO NOT use all your savings to pay off credit cards,keep about two thousand in savings and use what you have left for debt reduction.By doing this you will have money to fall back on if an emergency comes up i.e. furnace needs repairs or car repairs this way you can pay these bills with out taking on new debt.Also stop using cards and use some cash for your living expenses this will help speed up the pay off date and keep you from additional interest charges.
2007-03-10 09:46:11 · answer #4 · answered by Anonymous · 1⤊ 0⤋
By all means, pay off the cards! You're paying far more in interest on those cards than what you earn on the savings. And that interest is no longer even tax deductible.
Better yet, work hard to live within your means, and pay your cards off every month. That way, you won't even care how high the interest rate is, because you won't pay any interest at all. Remember, when you pay interest or pay rent, you're just "paying the man." The only good justification for that is when you pay interest on an investment for the future, like a home purchase, or to finish college.
2007-03-10 08:44:41 · answer #5 · answered by Carlos R 5 · 0⤊ 0⤋
The interest you pay on your credit cards is almost always going to be more than the interest you earn in your savings. Therefore, it makes sense to pay the credit cards off, if possible, and only use them as much as you can pay off when the bill comes. The credit card companies will hate you but who cares?
2007-03-10 08:47:40 · answer #6 · answered by Spud55 5 · 0⤊ 0⤋
If at all possible, pay off the credit cards. The interest alone is costing you more money than you are saving with the 6%.
2007-03-10 08:41:10 · answer #7 · answered by JC 7 · 0⤊ 0⤋
Very simple. If your interest on your credit cards less then 6%, then leave your money on your Saving account ( 6% interest).
Otherwise gradually pay off your credit cards, while keeping some money in savings. If devlation happens Cash will be The KING. :)
2007-03-10 09:07:05 · answer #8 · answered by sulla1111 2 · 0⤊ 0⤋
You need to pay of your cards, reason being, because your cards are higher interest rates than your saving account, Just put it this way, you are spending more money, while you could be saving 50 plus a month. Pay them off, that is what i did.
2007-03-10 09:55:34 · answer #9 · answered by Nattiedred 3 · 0⤊ 0⤋
Pay off the credit cards and then start saving!
2007-03-10 08:40:44 · answer #10 · answered by I love screwdrivers! 5 · 0⤊ 0⤋