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Do I use my savings to pay off the CC ?

(13 Posts)
Shinyshoes1 Wed 19-Jun-13 14:33:49

I work part time DP works full time . He pays the majority 99% of the bills and I spend my wages on the children and shopping

I have squirreled away a little savings , not much just a little. The house needs working on but mainly it's to take the children out for days out during the summer holidays

I have a CC only a small one but if I use my savings to pay off the CC it will leave me with about £40.00 owing which will be paid the month after now do I

A ) pay off the CC leaving a £40. Balance. Then build up my savings again using what I pay monthly on the CC and the Standing Order that goes into savings

Or

B) keep paying the monthly amount on the CC and pay the SO that I have set up for the savings ?

Wwyd ??

yes.

Always always pay off debt before thinking about savings.

esp4ecially as cc probably have 18% interest and savings about 1%.

I would pay it off! It will be costing you interest every month. Start building up your savings again, and feel v chuffed that you're no longer paying interest.

ChasingSquirrels Wed 19-Jun-13 14:36:29

assuming it isn't a zero interest credit card - pay it off. Then stop letting it build up.

sleepyhead Wed 19-Jun-13 14:36:52

Pay off the CC. Then up the SO to include the money you'd have been putting towards the CC payment every month.

That way you grow your savings faster and it doesn't cost you any extra.

sorry, didn't understand the options...

pay off as much of the card as you can with your savings, then pay off the rest when you next get money.
do not allow it to build.

CogitoErgoSometimes Wed 19-Jun-13 15:45:50

With everyone else saying definitely pay off the debt. No point earning 1% or 2% on savings if you're paying out 18% in interest on a credit card.

tametortie Wed 19-Jun-13 15:51:45

Definitely. Don't have savings and debt!

MadeOfStarDust Thu 20-Jun-13 09:21:56

HOWEVER - always have a little cushion of money that deals with an emergency - if this is your only emergency money I wouldn't be so hasty paying off the CC with it..

Picturesinthefirelight Thu 20-Jun-13 09:24:52

Absolutely pay off the debt. You'll save more in interest charges that way.

Bramshott Thu 20-Jun-13 09:45:47

Depends if it's "savings" or just "budgeting" - sounds a little to me like you're setting aside money now for expenses you know you'll have in a couple of months time, which isn't exactly savings is it?

even then, Bramshott - if she pays off the card in full, she won't pay interest on it. which goes the same if she needs that money in a while.

If you can afford to put a bit by here and there for the next expenses, then please do, but not if it means you have interest payments to make too.

can you cut into your budget elsewhere?

fuzzywuzzy Thu 20-Jun-13 14:44:33

pay it off, it's not worth paying the interest you will otherwise incur.

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