Since the economy is so bad should I hold off on paying off my CC debt?

[KatieNK]

I agree with everyone else that you should definitely pay off the CC debt. Just because your limit is $800 doesn't mean that it won't go higher than that. They will still charge you interest that will cause your balance to exceed your credit limit.

Why would you want to PAY the credit card company interest on an $800 balance every month? That's crazy!!!! Pay it off and then focus on increasing your savings account.

Also, it is not good for your credit score to carry a balance at your credit limit. That might make it hard for you to get an apartment and also some employers do credit checks.

But it sounds like to me that you already have your mind made up, seeing as you have some sort of rebuttal to every comment telling you to eliminate your debt.

[Gruntina]

800 is not a dealbreaker when you are trying to save 5000. I would pay off the credit card and be done with it.

[disneysteve]

I'm only able to save $400-$500 a month

I don't understand the problem here. You are able to save $400-500/month and your debt is less than $800. That means that the CC can be paid off within 2 months. Then you can devote that $400-500/month totally toward savings. In 6 months, you'd have no debt and an additional $2,000 in savings.

Why would you even consider keeping the debt?

[Seeker]

With one paycheck per month, s/he is probably pretty dry near the end of that period each month. With CC being maxed, s/he "knows" that they cannot use it.

Ultimately a spending problem contributed by the fact that there's only one paycheck per month.

But, the "best' scenario is to pay-in-full and not pay more by carrying debt forward. You need to learn to take control of your credit, and not let the credit companies take control of you.

You say your work is not stable, find stable work or work part-time elsewhere to help supplement. Work out a budget and plan your expenses with money you already have, not with money that you plan to get in the future.

[tark]

I would pay it all now and save it all up again so you won't have to worry about it.

[disneysteve]

It just too me so long to finally get over a $1000 and now I don't ever want to fall below that again. I want to continue to go up and up and the CC debt will continue to fall slowly during that time.

i just really don't want to see my EF account fall to $500 because of paying off my $790 American Express balance.

It sounds like you are thinking that paying off the CC means depleting your savings. That is not what we are suggesting (at least not what I'm suggesting). Keep your EF right where it is. Just don't add to it for the next 2 months. Take that time, instead, to pay off the CC, $400 this month, $400 next month. Then go back to building the EF.

[grandmaruth]

Credit Cards are the easiest way to screw yourself over, pay as much as you can off. That being said if it is between paying the bills or paying your credit card, take care of yourself first (feed the pig!)

"gama ruth"

[rizzmo]

Carrying this debt makes no sense. The cards limit is $800 and your at $790, maybe there is a spending problem that needs to be addressed first.

[ithaca]

If you're worried about your emergency fund shrinking, remember that once you've paid off the CC, you still have that $800 line of credit available to you in an emergency.

[AccountAnalyzer]

So with this major news story today about there possibly being a another Great Depression, I guess I should send American Express a $790 payment tomorrow morning

[KatieNK]

Yes you should and good luck. FWIW, I think it is awesome you are able to save $400-$500 a month! Good for you!

[maat55]

So with this major news story today about there possibly being a another Great Depression, I guess I should send American Express a $790 payment tomorrow morning

The sky is not falling and the world is not coming to an end over 790 dollars. Do whatever makes you feel good. We've told you time and time again what we would do.

[AccountAnalyzer]

Yes you should and good luck. FWIW, I think it is awesome you are able to save $400-$500 a month! Good for you!

Won't I need that $790 if there is a crisis or job loss?

[AccountAnalyzer]

The sky is not falling and the world is not coming to an end over 790 dollars. Do whatever makes you feel good. We've told you time and time again what we would do.

I'm asking because of the way the news people on CNN are talking. So if I nd up losing my job due to a market crash won't I regret sending american express that $790?

[disneysteve]

I'm asking because of the way the news people on CNN are talking. So if I nd up losing my job due to a market crash won't I regret sending american express that $790?

First, turn off the TV.

If you lose your job, it is far better to be debt-free. You want to minimize your expenses. Paying off debt is part of doing that. I realize the payments on $790 aren't much, but they are more than zero. As several people have said already, if you really got in a tight spot, you could always charge to the card again. You can't do that now since you have it maxed out.