Which Option is better in this economy? Pay off Cards or Preserve Cash

[Anonymous]

Nothing personal Woopah, I like to debate/argue.   

I will delete as well, getting way too off topic.

[Anonymous]

I think that's what's called a 'false dilemma'. The assumption that the degree of hardship or sacrifice, or whatever you want to call it, is accurately (and finitely) measured by the limited options of either A) Pay car note, or B) feed the baby isn't really a fair representation of what any individual has to go through to meet their obligations, whether they have a family to support or not, when the hard times hit. There's too many variables, including the human & social ones, for things to be that simplistic, or cold.

But, I do understand where you're coming from. I've got a family. I'm a mother, and I will fiercely protect the interests and well-being of my kids over and above anyone else. Period.

I just don't buy that someone's concern or sense of obligation, or even desperation & devastation is lessened by being childless, or a non-homeowner, or whatever other permanent obligations that people have. Different in how one might ultimately respond, but not necessarily diminished.

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fender wrote:
100% agree, however if I had the power to stop a baby from starving, or a person from getting a credit hit because of lates from a cosigner, I would help the baby.  Maybe its just me.

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[Anonymous]

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@vonmannstein wrote:

I tend to agree that securing enough money to tide you through 3-6 months is a very important first priority.  I really think it's worth forgoing some extra high-interest payments for a while to make sure you're not in a position where you can't make the minimum payments at all and let them go into collections, ruining your credit for years to come.  I would probably do the following:

1)  Find your cost of living without a job (for me probably 66-75% of normal)

2)  Estimate your unemployment benefits, round down.

3)  Subtract 2 from 1 to find your monthly deficit.  Round up.  Multiply by 6 months.  This is the bare minimum you should have saved.  Any excess past this point could go to paying down debt and would ultimately lower the burden of payments during tougher times.

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Somehow, Fender & Woopah seem to have hijacked this thread.  I absolutely agree with vonMannstein here.  Most bills can't be paid with cc's, plus, it's really not a smart idea to keep racking up debt while unemployed.  I love Dave Ramsey, but his "baby steps" were developed in a stronger economy.  While the situation with the economy hasn't yet spiraled down to the depths of the Great Depression (i.e. 25% or so unemployment at the end vs. 7.2% now), we have a new president and a House led by Nancy Pelosi.  We don't know yet what their policies will do, whether to help or exacerbate the situation.  This recession has swept around the globe.  In today's economy, when anyone could be laid off any minute (except maybe those working for the military or the IRS), it's imperative to build up 6 months worth of expenses in savings.  If you want to try to pay down some debt at the same time, then so be it, but cash is king right now.  As Dave says, cut your expenses and use laser focus to pay down those credit cards and build up your emergency savings.  Save all your receipts for a month and see what you're really spending your money on.  You'd be surprised how much the dinner out or latte here and there adds up to.

[Anonymous]

Well, poop on both of your heads then, LOL! I just typed a whole diatribe one-handed because of sleeping kid in my lap, and now the two of you decide to delete? Do you have any idea how long that took to type?

I'm refusing to delete in protest of my poor treatment now!

Let the record show that Fender and Woopah are the raving ranters, and not me! I don't care how it looks!

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@Anonymous wrote:

Nothing personal Woopah, I like to debate/argue.   

I will delete as well, getting way too off topic.

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[Anonymous]

Gasp!  Whatever are you talking about??  It sure looks to me like you are making things up in your quotes!  I see no proof!

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@Anonymous wrote:

Well, poop on both of your heads then, LOL! I just typed a whole diatribe one-handed because of sleeping kid in my lap, and now the two of you decide to delete? Do you have any idea how long that took to type?

I'm refusing to delete in protest of my poor treatment now!

Let the record show that Fender and Woopah are the raving ranters, and not me! I don't care how it looks!

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@Anonymous wrote:

Nothing personal Woopah, I like to debate/argue.   

I will delete as well, getting way too off topic.

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[marty56]

Message Edited by marty56 on 01-30-2009 02:55 AM

[marty56]

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@marty56 wrote:

Message Edited by marty56 on 01-30-2009 02:55 AM

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I wanted to play too.

[Anonymous]

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@marty56 wrote:

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@marty56 wrote:

Message Edited by marty56 on 01-30-2009 02:55 AM

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I wanted to play too.

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[marty56]

Another reason to consider paying down debt over savings is that if say 40% of your take home pay is going to pay CC debt and you pay down your CC debt to 0, then you could take a 35% paycut on a new job if you get layed off and still be ahead.

[oracles]

The night i had to give a presentation, i missed all the action lol

I am glad we can all give opinions but also know we are on each other's side.

We are all here to support each other.

Now support me in telling me what happen, what is the gossip lmao kidding

I saw marty's post and i said "well why did he edit" lol