Save or Pay-Off Debt? Which do you choose?
In the past, whenever I had extra money I was never clear on whether to put the money in a savings account and earn some interest or pay-off debt. Well, now that I have more insight into personal finance I know exactly what do do.
I pay off debt. To get a clear understanding as to why you need to pay off debt with any extra money you have read this great article at Blueprint for Financial Prosperity.
Regards
I don’t put all of my money into one place right now. I have a 0% promo rate credit balance that is getting paid off at a rate that will complete just before the promo rate ends. I have a student loan balance I pay minimum amounts on. I have a vehicle balance I pay 300-500% the minimum monthly payment on. I am opening an emigrant direct account.
My goal is to keep paying the credit card as I am, since I pay no interest and won’t have to as long as I pay it each month. The truck payment I pay a lot on, but not as much as I can, because I might want some cash to put a down payment on a house. Once I figure that situation out, the emigrant savings account will get priority over my student loans as it is at a higher rate than the loan and it would be nice to build an emergency fund up.
Blaine, it sure is refeshing to see someone with a plan. I wish you all the best in the world. Thanks very much for contributing really good insight to this blog.
Regards