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Member
shakeb0xx
Posts: 16
Registered: ‎03-23-2009
0

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. 

Valued Contributor
usmc58555
Posts: 1,668
Registered: ‎02-18-2009
0

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?

 

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Member
shakeb0xx
Posts: 16
Registered: ‎03-23-2009
0

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. 

Valued Contributor
usmc58555
Posts: 1,668
Registered: ‎02-18-2009
0

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.

 

 

Signature line begins:
Credit is not a right, but a business transaction, one that takes into account risk, and charges accordingly based on that risk.
Your credit score is an aspect of your credit profile. Important? yes but just an aspect. Contributing/supplemental information determines the finer point of the deal. Ask any question, respect me not to get mad if the answer is not the affirmation you are looking for,
Valued Contributor
Jazzzy
Posts: 2,679
Registered: ‎07-29-2009
0

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.

Senior Contributor
creditwherecreditisdue
Posts: 4,923
Registered: ‎04-19-2009
0

Re: better route to take?


shakeb0xx 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. 


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