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am I thinking right?

November 3rd, 2008 at 05:07 pm

I've started selling a few things on ebay lately, and have an extra $50 accumulated from that. Plus, I have an extra $30 from an "investment". (I bought a huge box of greeting cards at a yard sale for $1, took out about 50-60 of them for me & my MIL to use, and resold the rest to a local discount store for 10c apiece.

My original plan was to take this found money and add it to one of my credit card payments, but since my job situation for next year is unknown at this point, I'm thinking I'd better just add it to the emergency fund instead. I'm actually thinking that instead of paying my usual 10-15 bucks extra on top of my minimum card payments that I'd really better stash that to the side as well, just in case.

This is logical thinking, right? Not just panic setting in? I reason it out by saying I'd rather pay (at worst) the 7.2% interest on the card rather than having to skip the minimum payments later and have them jack the interest rate sky high.
~~~~~
Grrr. Now I have $79.80 instead of $80. I just burned 2 pieces of bacon beyond recognition while I was typing this!

5 Responses to “am I thinking right?”

  1. thriftorama Says:

    You could pay down the card, and if you lose your job you can always use the card again.

  2. creditcardfree Says:

    If you don't have any emergency fund I would probably do the same thing. You may luck out and find a job sooner and then the cash you saved could still be put toward the card later.

    If you do have a good EF, then by all means attack the debt while you have income coming in.

  3. Koppur Says:

    I always feel safer with an EF than with 0 debt...good luck!

  4. ME2 Says:

    I will NEVER understand (I do understand that the interest on a credit card is usually higher, alot higher, than the interest earned in a savings vehicle) the rationale of forego the EF in favor of paying off a credit card because you can always charge the credit card back up. Ugghhh !!! Talk about a vicious cycle.

  5. allfinancehelp Says:

    If you don't have any emergency fund I would probably do the same thing. So nothing to worry about in this. All in all a good post you have written. Thanks a lot. All smiles .

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