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Saving vs paying down debt

March 16th, 2008 at 12:31 pm

we have $3000 in saving right now and i wasn't sure which way to go. so i asked in the forum and it sounds like there is backing for either.

for now we are keeping the money in saving because i like having it there and now that we are only buying what we need and really really want we have lots of cash to pay down the debt. this sure is an exciting journey. i get excited just thinking about it.

Posted in Living Beneath my Means | 3 Comments »

3 Responses to “Saving vs paying down debt”

  1. Amber Says:
    March 16th, 2008 at 12:56 pm 1205672170
    1205672170

    Good luck, I too like seeing my money in my savings(it is a tough choice for me) but what I have found is that if you use that money to pay down/off your debt you save a lot more much quickly

    good luck

  2. disneysteve Says:
    March 16th, 2008 at 01:34 pm 1205674460
    1205674460

    Having savings is the only thing that will keep you from turning to debt again in the future when some financial need arises. If the car needs repairs, the dog gets sick, the washing machine goes on the fritz or some other problem crops up, with no savings, you are forced to charge it. With savings, you just pay the bill and move on.

    Keep living below your means, saving a portion of your income and paying down your debt and you'll be fine.

  3. HouseHopeful Says:
    March 16th, 2008 at 03:44 pm 1205682262
    1205682262

    I've had that problem myself. I might suggest splitting it down the middle. Keep half in savings and put 1/2 to the debt. I did that. Then as I became more comfortable with lowered savings, I pulled a little more money from savings to put towards debt. You could do it little by little to fit your comfort level.

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