topic BT or Use Savings in Personal Finance

BT or Use Savings

Harvey26 — Mon, 21 Aug 2023 20:30:32 GMT

As a recent turn of events, went on vacation got sick missed work and then had two deaths in family in past week. So BOA card bal has creeped up on me to about 6k. Now I have enough in my savings to pay it off, but that would bring me down to 0 but I can replenish it with 1000 every month going to work some overtime and pick up more hours at my part time to replinish savings. My local CU is also offer 1.99 for 18months but I would have to apply and of course open a new account with them. Any suggestions on which seems like the better alternative. I know its not alot of debt but I am so acustom to paying in full.

Re: BT or Use Savings

GZG — Mon, 21 Aug 2023 20:34:31 GMT

@Harvey26 wrote:
As a recent turn of events, went on vacation got sick missed work and then had two deaths in family in past week. So BOA card bal has creeped up on me to about 6k. Now I have enough in my savings to pay it off, but that would bring me down to 0 but I can replenish it with 1000 every month going to work some overtime and pick up more hours at my part time to replinish savings. My local CU is also offer 1.99 for 18months but I would have to apply and of course open a new account with them. Any suggestions on which seems like the better alternative. I know its not alot of debt but I am so acustom to paying in full.

0 savings and like 2k in checking or 0 money at all?

if your profile supports it, I would do the BT and keep 5k safe in case life turned upside down and then worked to put every other dollar towards that debt until it's gone

then I would work to turn that 5k into 10-15k so you're less close to teetering on the edge the next time life happens

Re: BT or Use Savings

Harvey26 — Mon, 21 Aug 2023 20:41:22 GMT

@GZG Oh no no. I have money in checking. I was also considering maybe just using half and then paying the rest off with my normal paychecks. But yeah I have defintely slacked off with my savings!

Re: BT or Use Savings

SouthJamaica — Mon, 21 Aug 2023 21:21:10 GMT

@Harvey26 wrote:
As a recent turn of events, went on vacation got sick missed work and then had two deaths in family in past week. So BOA card bal has creeped up on me to about 6k. Now I have enough in my savings to pay it off, but that would bring me down to 0 but I can replenish it with 1000 every month going to work some overtime and pick up more hours at my part time to replinish savings. My local CU is also offer 1.99 for 18months but I would have to apply and of course open a new account with them. Any suggestions on which seems like the better alternative. I know its not alot of debt but I am so acustom to paying in full.

I'm sure the Bank of America interest rate is prohibitive, so yes I would pay it off and then replenish my savings with the overtime.

Re: BT or Use Savings

Harvey26 — Tue, 22 Aug 2023 18:44:45 GMT

@SouthJamaica I did apply for the BT Card with Local CU. Asked for 10k, Pulled EQ @ 784. App is currently still pending.

Re: BT or Use Savings

SouthJamaica — Tue, 22 Aug 2023 20:37:48 GMT

@Harvey26 wrote:
@SouthJamaica I did apply for the BT Card with Local CU. Asked for 10k, Pulled EQ @ 784. App is currently still pending.

Thanks for the update. Good luck with it.

Be careful though, you don't want to max out the card and get slammed on your scores. If you go for 4800 you probably won't get hit too bad, but if you use most of the credit line you'll probably pay a price.

Re: BT or Use Savings

Harvey26 — Tue, 22 Aug 2023 21:27:39 GMT

@SouthJamaica Yeah im sure my scores will take a dip but there is nothing else I need and a temporary score drop isnt the end of the world I will get it back up in no time. But the card was approved for the 10k ! So got my repayment plan in my head. Now to start the work.

Re: BT or Use Savings

SouthJamaica — Wed, 23 Aug 2023 01:53:44 GMT

@Harvey26 wrote:
@SouthJamaica Yeah im sure my scores will take a dip but there is nothing else I need and a temporary score drop isnt the end of the world I will get it back up in no time. But the card was approved for the 10k ! So got my repayment plan in my head. Now to start the work.

Congratulations on that nice approval