Its been 5 months since my Dad passed and I keep thinking about the money and using it to pay off my credit card.
That would leave just DH's credit card balance.
I'm tempted to do it for a few reasons:
1) We already have our $1000 EF
2) The $10K isn't earning much interest while the balance is costing me about $15/mo on my CC
3) I don't want to have a $9K CC balance when I start applying for new jobs and having to explain that. My other debt... two cars, two houses, and student loans are stuff that are easily explainable... Cars are in both our names, houses are rental properties, and student loans were for my education.
I've debated a lot about using the money to pay off my CC. My Dad was always a source of rescue for me, but by paying off the cards... and then CANCELING them... I think it also gives me a sense of freedom.
I don't want to be in debt, and CC debt is the most annoying of all debts.
So I continue to debate this. I don't think it would be an unwise move so long as I take the necessary steps to ensure I never get into debt again.
We do have the move coming up, and if I get a job outside the house I'll have to plan for additional expenses (work clothes, etc) so I hesitate sometimes.
Honestly, some days I'm really not sure. But to have the CCs in my name GONE, I would be thrilled. I'd then cancel them or at least reduce the credit limit to something really low.
Should I?
March 4th, 2010 at 04:50 pm
March 4th, 2010 at 05:04 pm 1267722275
March 4th, 2010 at 05:42 pm 1267724538
But my other thought was that my graduate student loans will start being due and on a month to month basis, I'll have a hard time paying on two credit cards AND my student loan
March 4th, 2010 at 05:48 pm 1267724884
I have some friends who have been "bailed out" on credit card debt several times before and were relieved, but then always got into as much or more debt again. wasted opportunities!
Also, I don't think debt will hurt you in a job search, just your credit score. They are really looking to see if you are responsible at paying on time, and for bankruptcies, not total debt- unless of course it's a huge number.
March 4th, 2010 at 05:49 pm 1267724989
Will the Navy money arrive before or after the move? If before, yes I'd pay it off. If not until after, then I will only pay off the amount on the cc that would make the payments manageable. Will the student loans become due before the move?
I just think it is wise to have a chunk of cash while moving, because of deposits, extra expenses that aren't reimbursed. If you don't have the cash available during the move, you may just end up charging on the card again.
March 4th, 2010 at 07:39 pm 1267731593
March 4th, 2010 at 08:50 pm 1267735807
March 4th, 2010 at 09:22 pm 1267737748
March 5th, 2010 at 01:48 pm 1267796894
Jerry
March 6th, 2010 at 01:30 pm 1267882245
AB, honestly I would bank it and just pay the cards off as quickly as possible. Money in the bank as a safety net is important. I know your DH is military and with a safe income, but it's going to be hard to save that much money again. Put it somewhere you can't get to it as easily and just be frugal and pay off the cards as fast as you can! IMHO.