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Wednesday and a Question

January 26th, 2011 at 08:22 am

Well, today is humpday. I am so glad. I sure didn't want to get out of bed this morning. It was so nice and toasty warm! It is raining too, which didn't help my motivation too much. It briefly turned to snow but now it is back to rain.

I took out some hamburger last night to make a hamburger helper meal($1 at DG). I have probably 5 more packages of hamburger meat in the freezer. That is part of what I am going to try to get rid of.

I have a question for you guys...in theory, I am going to be able to put $300/month toward my debt starting next month. Should I pay of a credit card, put the money toward my car loan, or put the money into my emergency fund(which is almost non-existent)? I am torn about the best use of the money. What do you think?

5 Responses to “Wednesday and a Question”

  1. CouponAddict Says:

    Can I ask what are the interest rates of credit cards and the car loan? I like to pay off the highest interest rate so that is what I would use to determine the car first or the CC first.

    If you put the money in the EF, will it stay there in case of Emergency or is it likely to be spent for non-emergency expenses? Your sidebar says you were going to pay off your CC's then build your EF.

    Might I suggest 50% Debt and 50% Emergency Fund until you are comfortable with the level of your EF then apply all the extra to CC and the Car.

  2. creditcardfree Says:

    CouponAddict, asks good questions and gives good advice. I'm definitely of the theory that an EF is important, but only if you don't use it for non emergency. The dog needs food, or a school expense are not emergencies.

    I've read your posts for awhile. I think you might find more power in paying off the debt. You are doing a great job of not incurrring new debt. You might increase your spending amounts slightly, too. It seems you are often a little short of funds, which seems that it might mean you are squeezing things to tight. Please don't take offense. I do the same thing! Smile

  3. North Georgia Gal Says:

    CCF, I don't take offense. I do squeeze things way to tight sometimes, but somehow it always manages to work itself out. I will probably increase my spending, allowing more for groceries, since that is the area that I am usually lacking.

    CA...you do ask some good questions. I am not sure of the interest rate on the cc or loan, but know that they are above 20% due to my crappy credit score, which I am working on. I think it is wise to pay off the debt and then start increasing my EF.

  4. Joan.of.the.Arch Says:

    With interest rates above 20%, I'd say put any extra to the CC. That costs you more and more money all the time.

  5. jolie Says:

    I echo the comments above. Pay off the CC. $300 can make a nice bite out of it each month and you will 'feel' the progress faster.

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