Paydown Debt Faster or Save While Paying Slower?
Date: Mon, 01/15/2018 - 09:41
I currently have around $20k in credit card debt.
I have the ability to pay around $1600/month towards that debt. Currently, $800 of that is going into savings.
Is it best to leave that $800/month going into savings (where it's not really earning any interest) or put it towards the debt in order to pay it off faster and pay less in interest?
I already have my own answer but I'm interested in what others think about the options.
I have the ability to pay around $1600/month towards that debt. Currently, $800 of that is going into savings.
Is it best to leave that $800/month going into savings (where it's not really earning any interest) or put it towards the debt in order to pay it off faster and pay less in interest?
I already have my own answer but I'm interested in what others think about the options.
Ofcourse, the sooner you pay
Ofcourse, the sooner you pay off the debt burden, is better.
Yes, you are absolutely right. As you are not getting any interest from the savings, there's no point of putting that amount aside right now. It will be a wise decision if you put that $800 towards paying off your credit card debt.
Do you have any emergency
Do you have any emergency fund? If yes, the you can use the entire amount to repay debt asap. But, if not, then it's wise to keep some liquid cash and repay debt at the same time.
I feel you should save $800.
I feel you should save $800. It is helping you to build your emergency fund.
Pay as much as you can toward
Pay as much as you can toward the debt. It will help you to get out of it fast.