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09-05-2007, 04:45 PM
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#6
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Mommysavers Diva
Last Online: 01-21-2010 02:23 PM
Join Date: Jul 2006
Location: Victoria, BC Canada
Posts: 503
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Unless your savings account is earning more than your current interest rate for your credit card, I would take at least $1500 out of the savings and apply it to the card. You can always build up the savings again. I would pay the card off as aggressively as possible (assuming it is not one of those really low 0% interest type offers, etc.).
Yes, you could have an emergency come up. The odds are that the remaining $500 would cover it. If not, you could turn to the card again for that one emergency. This way you have a relatively small chance of running up the card (for a true emergency). The other way you are guaranteed to be paying lots of interest on a card when you have the money sitting in the bank earning way less interest (again, I'm assuming this isn't one of those really low interest cards).
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