With the additional inheritance... I have $11,336 in savings, not counting our $1000 emergency fund.
So I struggle to come to terms with the idea of dealing with the $8750 I have in CC debt.
If I paid off all my CC debt (keep in mind, DH still has a $27K balance on his), it would still leave me with $2500
For a total EF balance of $3500. Yet, its not high interest debt... 1.99% and 6.74% after the intro rate.
I get a better rate of return on my retirement accounts. Last year DH got a 25% return on his TSP and we barely put any money in. This was largely because I anticipated the whole Nov '08 drop and transferred the money into government secured funds and slowly, month by month, re-invested it.
I guess patience is key. Like weight loss.
I could easily pay off my card, but the key really is making sure I've addressed the behaviors that led to the CC debt.
That said, once I have the card paid off... I'm canceling the card. I'll only keep 2 cards from there on out with a total maximum balance of $6K, maybe not even that. I don't know. But I plan to significantly downsize my credit report & finances.
The other question I struggle with is the playset my Dad bought. It was a $900 playset... the last gift he gave the kids.
Since we're moving, I don't think the Navy movers will move it. So I debate selling it or trying to move with it. Moving it would cost a lot, I'm guessing we'd have to get a POD or something.
But on the other, I struggle to part with it. Its only a year old and it was built to last 10 years. I wonder if my Dad would be upset that we'd have to part with it just cause of a move.
My husband just wants to leave it here for the tenants. Which I am adamant against. I don't need a tenant to get hurt on the playset and claim liability against us for assembling the playset.
So whatever happens, its either getting sold or we're taking it with us. But I can't decide & we don't have too much time since we will probably be moving within the next 3-4 months.
Still debate this...
March 22nd, 2010 at 05:01 pm
March 22nd, 2010 at 05:19 pm 1269278342
March 22nd, 2010 at 06:03 pm 1269280985
Yes...don't pay off your cc with the inheritence money. Consider all of that money your emergency fund. Part of ours was funded this way. Create new spending habits as you pay off the debt and you'll be much richer for it!
March 22nd, 2010 at 06:52 pm 1269283967
Take the playset with you! If it has a lot of life left in it and was a gift from Grandad, use the inheritence to move it!
March 22nd, 2010 at 07:36 pm 1269286567
March 22nd, 2010 at 07:47 pm 1269287237
Either way, I'm probably going to call my Aunt (the sister my Dad lived with) and ask her what Dad would have wanted me to do. I think that will help me feel at peace with the decision.
March 22nd, 2010 at 09:18 pm 1269292729
March 22nd, 2010 at 09:23 pm 1269293008
I didn't comment on your debt vs emergency fund. But I still think you need to hold on to at least $10K for an emergency fund. With emergency funds it isn't about the interest rate!
March 23rd, 2010 at 01:33 am 1269307987