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09-05-2007, 11:09 AM
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#3
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Mommysavers Goddess
Last Online: Today 04:05 PM
Join Date: Dec 2006
Location: Idaho
Posts: 3,752
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I strongly recommend developing a savings mentality. Keep adding to your savings and NEVER, EVER use it to pay off a debt.
Of course, if an emergency crops up, it is better to use your emergency fund to deal with the problem than use the credit card. That's the purpose of that money. Sometimes we are in a situation where we have to use a credit card for an emergency (someone died and we have to fly to the funeral, for instance) then as soon as possible use the emergency fund to pay off that debt.
However, if your credit card debt is just the normal expenses - clothes you found on sale, a night out at a restaurant, a fun weekend get away - suffer with paying it off out of your normal cash flow.
If you get into the mentality that you can use your savings to wipe out your credit card debt, then you'll start justifying a bunch of little charges on your card. As in, "Oh it is okay to charge these movie tickets, I'll just take the money out of savings when the bill comes." If you start down that road, you'll end up with NO savings and lots of credit card debt.
Hang onto your savings. Become debt-adverse. Pay off that debt and rejoice in the freedom that not having that monthly bill brings.
__________________
"Poor people work for their money. Rich people make their money work for them."
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