Save refund from taxes for cushion or paydown debt? - credit card paydown calculator
They say you should save 6 months of income for a rainy day, but it is better to not pay your credit card?
Credit Card Paydown Calculator Save Refund From Taxes For Cushion Or Paydown Debt?
5 comments:
Is not in the current economic situation, a "rainy day", they say, you should be blocked, you lose your job because of the economy.
You should be out of debt first and, of course, the best way is to pay high interest rates or CC. Once these cards are the fruits that you the monthly payment that can be sent to the CC company and put it in a savings account. Be very careful not to fall into debt with the CC, would you consider to cancel all the cards except one for emergency coverage lowest interest rates.
The general consensus among experts in personal finances have always said that if you pay you will for the first time, before paying their bills to pay. The idea is to build a portion of your salary aside each payday, a pillow and then pay their debts in order to create the excess funds. It is always a good idea, but perhaps a little more difficult in the current economy. Anyway, if you do not currently have a pillow and then put some or all of the reimbursement to a page. Then concentrate on paying your credit cards that pay more than the minimum each month. When you have a cushion, I would be very beneficial to pay or to pay credit card debt.
I think it depends on the interest-rate credit card. When you settle a high (above 10%), then I advise you as soon as possible. You can do both - to an account for a rainy day by hosting fee of 1 months pay the entire debt, then add the cost of further 5 months in which to open up for a rainy day account. Even if you have a tax refund of large (over U.S. $ 2400) shall be notified to submit a new W4 with your employer to reduce storage and increase net profit. A discount of $ 2,400 represents an additional $ 200 per month in your pocket each month.
You need 6 months of income saved for emergencies. After paying their debt to credit cards because the interest is higher than the amount of interest on your savings.
I would say 50/50.
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