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Beaux
LSU Fan
Down On The Bayou
Member since Sep 2005
4552 posts
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Pay off Credit Card Debt FIrst or Invest ?
Should I get out of all my credit card debt first($15,000) or is it ok to start investing parts of my paycheck into ROth IRAs or other investments?


Mingo Was His NameO
LSU Fan
318
Member since Mar 2016
4354 posts
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re: Pay off Credit Card Debt FIrst or Invest ?
Let's say you kill it in the market, you'll probably make 15-20%. IF you play it perfectly. Every month you don't pay the credit card you pay 20-30% interest bthats capitalized the next month. What do you think is the better idea?


Wade Phillips
Member since Dec 2008
372 posts

re: Pay off Credit Card Debt FIrst or Invest ?
CC debt. No question.


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110
SouthMSReb
Ole Miss Fan
Member since Dec 2013
2491 posts

re: Pay off Credit Card Debt FIrst or Invest ?
quote:

Let's say you kill it in the market, you'll probably make 15-20%. IF you play it perfectly. Every month you don't pay the credit card you pay 20-30% interest bthats capitalized the next month. What do you think is the better idea?




This. It'll give you better peace of mind as well.


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TDsngumbo
USA Fan
TDsngumbo (R)
Member since Oct 2011
11428 posts
 Online 

re: Pay off Credit Card Debt FIrst or Invest ?
Get rid of the debt first.


Hammond Tiger Fan
Vanderbilt Fan
Hammond
Member since Oct 2007
14556 posts

re: Pay off Credit Card Debt FIrst or Invest ?
quote:

Get rid of the debt first.


This and try not to acquire any new debt so you can invest and build a small emergency fund.


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50
ATLdawg25
Georgia Fan
Atlanta, GA
Member since Oct 2014
4017 posts

re: Pay off Credit Card Debt FIrst or Invest ?
quote:

Every month you don't pay the credit card you pay 20-30% interest bthats capitalized the next month.

Those 20-30% interest rates are annualized not monthly, but the principle still holds...definitely pay off the CC first.


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Machine
New Orleans Pelicans Fan
Earth
Member since May 2011
5216 posts

re: Pay off Credit Card Debt FIrst or Invest ?
always pay off CC debt as fast as possible


Doink
New Orleans Pelicans Fan
Greatna
Member since Sep 2012
230 posts

re: Pay off Credit Card Debt FIrst or Invest ?
Do you have a decent credit score? Transfer the debt over into a 0% credit card for the longest duration you can find. Don't use the new credit card and try to pay it off by the end of the 0% period if possible.


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Beaux
LSU Fan
Down On The Bayou
Member since Sep 2005
4552 posts
 Online 

re: Pay off Credit Card Debt FIrst or Invest ?
Is it worth getting a loan to consolidate it to one bill and lower my interest rates, any recommendations....thanks


castorinho
Oklahoma Fan
13623 posts
Member since Nov 2010
48213 posts

re: Pay off Credit Card Debt FIrst or Invest ?
How good is your credit score
This post was edited on 2/8 at 10:49 am


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Machine
New Orleans Pelicans Fan
Earth
Member since May 2011
5216 posts

re: Pay off Credit Card Debt FIrst or Invest ?
quote:

Is it worth getting a loan to consolidate it to one bill and lower my interest rates, any recommendations....thanks
depends on how much you have and what interest rate you're paying

but if you don't plan on running up the CC's any more, there's a very good chance that would help


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PhiTiger1764
LSU Fan
Lurker since Aug 2003
Member since Oct 2009
11005 posts

re: Pay off Credit Card Debt FIrst or Invest ?
What interest rate is your debt? I leverage credit cards from time to time and it might be worth looking into if you are financially disciplined.

Figure out how long you think it will take to pay off the debt. Figure out if you have the ability to balance transfer to a 0% card if your debt is not already on one. How much will this cost you? Will you need to balance transfer again before the end of the 0% terms? Assume a reasonable rate of return for your Roth. Do the math to see what ends up being the better option.



Beaux
LSU Fan
Down On The Bayou
Member since Sep 2005
4552 posts
 Online 

re: Pay off Credit Card Debt FIrst or Invest ?
Thanks


Teddy Ruxpin
LSU Fan
Austin, TX
Member since Oct 2006
31503 posts

re: Pay off Credit Card Debt FIrst or Invest ?
BTW the best balance transfer card is Chase Slate if you can get it.

Start there and work down.


emboslice
Oregon
Member since Dec 2012
3118 posts

re: Pay off Credit Card Debt FIrst or Invest ?
quote:

BTW the best balance transfer card is Chase Slate if you can get it.

Start there and work down.

Thanks! Just transferred my balance from Freedom to Slate


CockHolliday
South Carolina Fan
Columbia, SC
Member since Dec 2012
3352 posts

re: Pay off Credit Card Debt FIrst or Invest ?
Your credit card debt and interest rate are a sure thing; your financial profits from investing aren't. Definitely erase your debt first and then use that monthly CC payment to invest if you like, that's what I'm working on myself.


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emboslice
Oregon
Member since Dec 2012
3118 posts

re: Pay off Credit Card Debt FIrst or Invest ?
Is it true that Chase won’t let you transfer from one CC to another Chase CC? Or should I just give them a call and ask again


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