Question for all you financial Guru's

[msuman]

Depends on your interest rate and how long it would take you to pay it off. Cash is king and I am assuming that $10K is your savings and your emergency fund.

 

[southern_mr.337]

pay the debt...you never want to owe anybody anything...interest is in no way your best friend but the credit card company on the other hand is looking at you like a prime rib just waiting for you to be done..these companies make their money off of interest so make it harder for them to take your hard earned money..

Question: Does this card have an annual fee?

 

[ricanprince]

Cosign, its a hit to your savings, but it will save you more in the end, becuase the longer you take to pay it off the more you will waste paying on interest. If you have the money to pay off your debt in your savings it's always smarter to use it to do so.

well thanks for the info i appreciate it

 

[lady_c]

it depends. do you work? do you contribute to this savings acct regularly? are you responsible for your own living expenses? what is the interest rate on the card? do you have other cards?

these factors come into play bc:

- if you only have this card or limited credit, you need to keep at least a 30% debt to credit ratio on them to get the best credit rating. you clear all balances on cards, and potential lenders look at it like you have all kind of available debt to rack up which could be a liability to them.

-if you dont contribute to your savings regularly, then you will deplete cash for credit which is never good. esp how cc lenders have been acting closing accts, etc.

-if you have no overhead, then you can be more flexible with your savings bc you dont need an emergency fund as much as someone who has a mortgage to pay

id say if you have a job, pay the debt off in increments much larger than the minimum, basically in chunks. unless you have an astronomical interest rate, that changes the whole game

 

[a.mann]

that nigga Solar should let his family see him even tho Guru said that wasn't his wish

But he was a fool to let that nigga have power of attorney over ALL his affair ....something odd with that

hold up wait....guru???

 

[a.mann]

....................

 

[ricanprince]

great advice everyone, so once paid off, credit score should go up, correct?

 

[buttuh_b]

Compounding interest is a bitch when you're the one paying it. Credit card interest is waaay more than you'll make on interest on your savings. You can always save that shit back up without losing more money.

 

[blakfyahking]

great advice everyone, so once paid off, credit score should go up, correct?

not necessarily

credit scores improve with time, not necessarily just payments

 

[ricanprince]

not necessarily

credit scores improve with time, not necessarily just payments

well i already know i have a good credit score, because ive recently checked it, im just wondering that once I pay off my debt, will it go even higher, i would assume within 6 months that this would happen

 

[blakfyahking]

well i already know i have a good credit score, because ive recently checked it, im just wondering that once I pay off my debt, will it go even higher, i would assume within 6 months that this would happen

it should as long as everything else stays the same

there are too many intangibles that effect a credit score

paying off a certain debt can help you in one way on ya credit score, but can hurt you in another depending on the circumstances

as long as you manage your credit balances to be way below your credit limits everything should be good......some mofos pay a balance off and then close the account, which isn't good to a FICO score

 

[ricanprince]

it should as long as everything else stays the same

there are too many intangibles that effect a credit score

paying off a certain debt can help you in one way on ya credit score, but can hurt you in another depending on the circumstances

as long as you manage your credit balances to be way below your credit limits everything should be good......some mofos pay a balance off and then close the account, which isn't good to a FICO score

naw, i have no plan on closing accounts, for the longest I always had a zero balance, but I hit a year of some rough times, and my shit kept going higher and higher, I thought I would be able to pay it all off quickly without dipping into my savings, but I see otherwise. Im just mad at myself for not paying the shit off sooner, and instead of flushing all this money down the toilet over the past year or so. Like someone said dipping into my savings will hurt short term, but in the long run it will be much better