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Pay or Save?

June 1st, 2008 at 03:36 pm

Question. I owe $6,832.65 on a credit card that has 0% interest until April of 2009. I currently have $1,000 extra in my bank account that I can use. Would I be better to pay the $1,000 on the credit card or put it in my ING Savings Account at 3.00% interest and add to it anything over the minimum payment and then pay as much as I can in March and transfer it to another 0% card. Or should I put it in a 6-month ING CD at 3.30%? Advice would be greatly appreciated!

*Edit: YES I meant 2009, not 2008, oops!

Personal Health Challenge: $2.00

Posted in Uncategorized | 3 Comments »

3 Responses to “Pay or Save?”

  1. luxlivingfrugalis Says:
    June 1st, 2008 at 03:56 pm

    Did you mean 2009? I'd probably lock the money in a CD if it were me.

  2. Nika Says:
    June 1st, 2008 at 04:27 pm

    If you absolutely trust yourself to not touch it until the month before your intro rate expires, than hold on to it for now.

  3. KellyB Says:
    June 2nd, 2008 at 07:56 am

    Holdon to the $1000 if you need it as your only emergency fund. There are 11 months between now and when you need to pay off that balance. You will need to pay $625.15 per month to get it paid off before the rate goes up. Do you have this amount monthly to pay? Set up an autopay so you don't miss it. If you don't have the full amount, set up what you can and then also send any "extra/found" money you can (snowflake) whenever you can manage it.

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