Should I Use My Money in the Bank to Pay Down My Credit Card? – Jenn

Jenn

“Dear Steve,

I have been out of college for 3 years. I have 26,000 student loan debt with low interest rates 1-4%, 6000 in credt card debt with 9% interest.

I’m struggleing with if its better to have a savings accont or to pay down my debt. i currently have a savings account, but I dont know if I should take that money and use towards my credit card/student loan debt or continue to save in case something happens with my job. Any Opinons?

Jenn”

Dear Jenn,

I think your question is best answered by the Q&A and comment from Ashlee from her question. Read Ashlee’s question here.

Bottom line, the savings account is critical. Pay the minimums on your debts until you save up at least $1,000 in a savings account. Nobody ever went broke from saving.

P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.

Steve Rhode Debt Coach and Author

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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