I don't wanna...humph

dingdongg

Hey everyone.

I know paying off debt is better in the long run than saving at the minute. I have managed to half my credit card bill in the last year, while putting double that amount away in saving. I know that I should pay off my card....but I don't wanna!! It would crush me to have my savings halved, even if it did wipe out my debt. Plus...that saving money is for a wedding dress .

Even though it's wrong, I can't help but think I am right in not paying off my card. What do you all think.?

Lokolo

If the debt is 0% then save first and pay minimum payments (but make sure you pay it off by the time the 0% offer goes).

duchy

Look at half of your savings -put that amount in the snowball calculator and see how much interest you will save by paying it off in one lump off the creditcard-and then justify why you are giving the creditcard card company all that dosh -that could be yours . Then repeat the calculation with 75 percent of your savings.

The creditcard bill will need to be paid at some point - you just need to decide if you want to pay the lowest amount (and use what you would have paid off monthly to replenish the savings account) or a higher amount and have the comfort of looking at a short term higher electronic balance.

What you want to do is like setting fire to five pound notes- you can work out how many you are burning with the snowball figures.

le_loup

dingdongg wrote: »

Plus...that saving money is for a wedding dress .

Even though it's wrong, I can't help but think I am right in not paying off my card. What do you all think.?

Crazy.
But there are a lot of you around.

Archi_Bald

Impossible to answer your question without a lot more facts.

How much (in percent) is the interest on your credit card?
How much (in percent) is the interest you get in your savings account?
How much tax do you pay (20%? 40%? 50%?)?
How much (in ££) do you have in savings?
How much of your savings (in ££) is in a cash cash ISA?
What is the balance (in ££) of your credit card?

atush

Plus...that saving money is for a wedding dress .

No, it isn't. Debt first, dress after.

What planet do you live on? The dream planet where you get what you want by growing it on trees, or the REAL planet where you have to work to buy it?

So buy a cheaper dress or wait longer til your wedding. Easy peasy lemon squeezy.