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better route to take?

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Anonymous
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better route to take?

hi all:

 

i am wondering what is a better route to take? Should i continue to pay my credit card debt off or keep saving for the emergency fund? whats better in today's economic times?

 

any questions, please let me know.

 

Thanks. 

Message 1 of 6
5 REPLIES 5
Anonymous
Not applicable

Re: better route to take?

Hopw much debt are you in?

 

What's your available credit lines?


How much do you make a year, net?

 

How much do you spend a month?

 

Is your job resonably secure?

 

How much emergency money do you have saved?

 

How many months would that last you?

 

Message 2 of 6
Anonymous
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Re: better route to take?

one cc debt: 7800

school loan: 32000 

i have 5 credit cards with 0 balance..avg credit line is 10k

i make about 90k a year.

i spend about 4k a month on mortgages.

yes i've been at my current position for four years.

i have about 4k in emergency funds which would last me 2 months.

 

thx. 

Message 3 of 6
Anonymous
Not applicable

Re: better route to take?


i have about 4k in emergency funds which would last me 2 months.

 

thx. 


Well, I would get that up to 4-6 months before I thought I was "covered." You have 50K in credit card lines but in advance of FEB22, no one has any idea what is going to happen on FEB23 so I would save a lot.

 

Remember SEPT/OCT are very hard on the stock market, economy news.

 

By the way, your math is off:

 

You cannot pay 4K a month in mortgage only, and have 4K saved which is then enough for two months.

 

if you have 4K a month in mortgages and your personal expenses are 2K you need 6K a month for each month.

An emergencey fund is: what would you have if your income STOPPED and how long you could then last.

 

 

Message 4 of 6
Jazzzy
Valued Contributor

Re: better route to take?

I agree with the need to build up a larger emergency fund....especially if you carry large mortgages.

 

It doesn't take much time for those to go south in a hurry.

 

That doesn't mean you just have to pay the minimums on your credit card....but don't put it all into the card. Put some in savings.

Message 5 of 6
creditwherecreditisdue
Senior Contributor

Re: better route to take?


@Anonymous wrote:

one cc debt: 7800

school loan: 32000 

i have 5 credit cards with 0 balance..avg credit line is 10k

i make about 90k a year.

i spend about 4k a month on mortgages.

yes i've been at my current position for four years.

i have about 4k in emergency funds which would last me 2 months.

 

thx. 


How/Why?

Message 6 of 6
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