Should I simply pay it off or apply for a personal loan? Although my savings are sufficient, I won’t have much left over. Season (bartender) is almost upon us, so I should have enough. Should I just put everything extra into it and pay down half of it?
If you have the money then pay it off, there is little purpose in holding savings whilst you have expensive debt, the interest collected on saves will always be lower than the interest paid on debt (with the exception of an emergency reserve)
Let’s take an example where you have 10,000 in a HYSA and 8,00 in a CC. In comparison to the profit the bank is making off of you, the interest earned on the HYSA is absolutely meager. Statistically, after being locked into a personal loan, you have a high probability of accruing further credit card debt.
Clear the debt and replenish your emergency savings.
I concur. Pay off a debt with a high annual percentage rate as soon as you can. Above all, alter your credit card usage patterns. Obtain a free financial review and counseling course if you are unsure of how to use one. You’re capable of this.
I appreciate the advice. I’ll pay it off right now 🙡
That is a gain of negative 25%. That’s a lot of blood when it comes to developing riches or your future self.
Slave to debt is a tough job. Remove yourself from it, but as a safety net in case you are mistaken, place a month’s worth of expenses in a HYSA.
To help you get off the treadmill, consider reviewing this graphic.
p8Q5lErAY7 on Reddit, https://www.reddit.com/r/financialindependence
Pick get one of those handy checks from Wells Fargo or Discover. You have between 12 and 15 months to pay off the 5% transaction fee.
Pay it off and get a cheaper credit card for reserves.