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Should i pay it off or save

Just starting to get my finances in order but what should i do.....

A) Pay off cc debts with all spare cash so that i have less interest

or

B) Save a bit first in another account in case i get into money trouble later and then ill have a few months minimum payments ready to keep cc companies happy

Not sure myself.
HALX CC (14%)...............[STRIKE] 5795[/STRIKE]....5470
[STRIKE]MBNA CC (20%)[/STRIKE]...............[STRIKE]3500 [/STRIKE]...CLEARED
COOP CC (17% and 5%)...[STRIKE]5350[/STRIKE]....5300
AMEX CC (4.9% LOB)........[STRIKE]2263[/STRIKE]....2223
==============================
TOTAL............................[STRIKE]16866[/STRIKE]..12993

Comments

  • cattie1
    cattie1 Posts: 2,068 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    notes wrote:
    Just starting to get my finances in order but what should i do.....

    A) Pay off cc debts with all spare cash so that i have less interest

    or

    B) Save a bit first in another account in case i get into money trouble later and then ill have a few months minimum payments ready to keep cc companies happy

    could you jsut pay some extra off all credit cards and save at the same time? that way your debt is going down faster than it would and you will also have some saved in case you get into money trouble:eek:
    and if you don't get into trouble and the cc's are all paid you could use the saved money for a treat/treats!:j
    official dfw nerd club member no 214
    Proud to be dealing with my debts!;)
    Why is a person that handles your money called a broker?!:confused:
  • notes
    notes Posts: 69 Forumite
    Also should i sell things that i may want again in the future.

    i.e. brought a new camera few months ago - will go on ebay for very good price, but is it worth it as will want to buy again in say 8 months for holiday next year.
    HALX CC (14%)...............[STRIKE] 5795[/STRIKE]....5470
    [STRIKE]MBNA CC (20%)[/STRIKE]...............[STRIKE]3500 [/STRIKE]...CLEARED
    COOP CC (17% and 5%)...[STRIKE]5350[/STRIKE]....5300
    AMEX CC (4.9% LOB)........[STRIKE]2263[/STRIKE]....2223
    ==============================
    TOTAL............................[STRIKE]16866[/STRIKE]..12993
  • Smashing
    Smashing Posts: 1,799 Forumite
    notes wrote:
    Just starting to get my finances in order but what should i do.....

    A) Pay off cc debts with all spare cash so that i have less interest

    or

    B) Save a bit first in another account in case i get into money trouble later and then ill have a few months minimum payments ready to keep cc companies happy

    Not sure myself.

    Depends how much interest you're paying on the cc compared to the interest from saving.
    Some people might find that not having money 'just in case' would act as enough of a detterant not to get into money trouble again. Of course, you can't prepare for every eventuality, but I'd clear as much debt as possible.
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    if you are well disiplined then pay off the debts as soon as possible. if the worst happens and you need extra cash then you will have to use the CC.
    once the debts are clear then start savings.

    buying stuff to sell off and then rebuy seems fairly pointless unless you can make a profit... i would suggest that you just buy less in the first place until all your debts are clear. and can you actually afford a holiday next year?
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