- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Paying off the CC
Posted on 1/2/13 at 8:11 am
Posted on 1/2/13 at 8:11 am
Hello! So here is my situation. I just started my "career job" (out of college). I racked up a tiny bit of credit card debt my last semester of school, shi* happens. My question is: Should I tackle the CC first before I focus on saving? If so I can have the CC paid off within a month. Thanks.
Posted on 1/2/13 at 8:15 am to Herb484
quote:
Should I tackle the CC first before I focus on saving? If so I can have the CC paid off within a month
If you can pay it off within a month, I would, no question about it. Then focus on building a rainy day fund.
Posted on 1/2/13 at 8:53 am to Herb484
quote:
Hello! So here is my situation. I just started my "career job" (out of college). I racked up a tiny bit of credit card debt my last semester of school, shi* happens. My question is: Should I tackle the CC first before I focus on saving? If so I can have the CC paid off within a month. Thanks.
Yes, pay it off first before focusing on your savings.
How much do you have to pay off? If its a good bit, I'd suggest doing what I did for dealing with credit card balances (totaled around $7k between 2 cards) by getting a consolidation loan from Neighbors FCU or any credit union. Before I was barely making a dent on the principal balance (if any at all) and now I have a standard monthly note with guaranteed principal reduction and since I pay an additional 25% of the payment each month, that additional goes straight to principal. Getting the consolidation loan was one of the best financial moves I've ever made.
Posted on 1/2/13 at 9:29 am to Herb484
quote:
I racked up a tiny bit of credit card debt my last semester of school
Can you define what is a little? How does this compare in relation to your income?
quote:
shi* happens
It does, but this is a learned behavior.
quote:
Should I tackle the CC first before I focus on saving?
Yes. My guess is you are paying a lot more in interest than you are making in savings.
Posted on 1/2/13 at 10:00 am to Herb484
quote:
If so I can have the CC paid off within a month. Thanks.
If you can have it paid off within a month its easier not that much or you got an awesome job out of school. Either way pay it off.
Posted on 1/2/13 at 10:08 am to Herb484
The balance 2k exactly. Thank you, good looking out!
Posted on 1/2/13 at 11:06 am to Herb484
quote:
Should I tackle the CC first before I focus on saving?
Unless you have an insanely low special interest rate the answer is absolutely yes, no matter how long it takes to pay it off.
If you have an open credit line then that can be your emergency fund. If an emergency happens and you simply have to pay for something, that's a valid use of the card. Until you have it paid off there's no need for an emergency fund, and your return on investment from paying off a card dwarfs just about anything else.
That said, if you actually do have an insanely low rate (0% APR for 12 month offers and the like) you may not need to pay it so quickly, just make sure you can when the teaser period runs out.
Popular
Back to top
Follow TigerDroppings for LSU Football News