Quote:
Originally posted by kgb
Don't mean to hijack the thread, but I think this is on topic enough. Currently I have about $1600 or so in credit card debt. I have $1200 in a money markey account that is maybe doing 1-2% if that. I was thinking about taking the money in market account and paying down my credit cards. Good idea? Bad idea?
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Good idea. The credit card debt is probably at least 6% so you are losing money if you are only getting 1-2% in the money market.
Take the money that you would normally allocate to the credit card each month and push it right back into the investment. Once that 6-8% fee is gone each month, you'll have that money also to plow into an investment.
Also, you'll get the benefit of paying off credit card debt and that will look good on your credit rating.