Dumpster 0 #1 September 28, 2006 Say you've got a nice chunk of change in savings - - Do you pay off you Credit Card debt, and have a small balance in the bank, and enjoy the thought you have no C.C. debt - Or leave the balance on your C.C. and enjoy the thought that you have $$ in the bank? Should get some interesting answers here? Easy Does It Quote Share this post Link to post Share on other sites
Dumpster 0 #2 September 28, 2006 Shit - Sorry for posting in the wrong forum - If there's a greenie in the house - Please move it? Easy Does It Quote Share this post Link to post Share on other sites
Mostly_Harmless 0 #3 September 28, 2006 QuoteSay you've got a nice chunk of change in savings - - Do you pay off you Credit Card debt, and have a small balance in the bank, and enjoy the thought you have no C.C. debt - Or leave the balance on your C.C. and enjoy the thought that you have $$ in the bank? Should get some interesting answers here? Since that money in your bank account isn't really yours since you owe money pay off your debit and put the rest of your money into a high yield savings account. I have most of my savings in a HSBC online savings account with a %5.15 interest rate._________________________________________ www.myspace.com/termvelocity Quote Share this post Link to post Share on other sites
Tonto 1 #4 September 28, 2006 The interest you are being charged on your CC will be higher than the interest paid by a savings account. Any free cash you have should 1st go to CC, then any loans you may have, then into a mortgage if you have one - and then into a savings account. tIt's the year of the Pig. Quote Share this post Link to post Share on other sites
mailin 0 #5 September 28, 2006 make money on your money. Put it in a savings account AFTER debt is paid off. Paying interest on debt is no good. Getting interest for your money is good.Arianna Frances Quote Share this post Link to post Share on other sites
Butters 0 #6 September 28, 2006 This is easy. Since the interest on your credit card is higher than the interest on your savings account you should pay off your credit card. Now if you owe debt on a car or a house in which you could earn more interest on the savings then the debt you should save the money."That looks dangerous." Leopold Stotch Quote Share this post Link to post Share on other sites
brabzzz 0 #7 September 28, 2006 Your milage will vary as i've no idea what the situation is over the pond. In the UK, you'd make sure all that CC debt is on a 0% interest card and then shove the rest in an ISA or other account earning 5.15%+. That way you're earning interest on money that isn't yours. I'm not paying off my student debt (I could do it tomorrow) because its rate of interest is lower than my after-tax savings rate (by under 1%, i think). So i'll just leave it right where it is and pocket the difference. --------------------------------------- Ex-University of Bristol Skydiving Club www.skydivebristoluni.com Quote Share this post Link to post Share on other sites
Dumpster 0 #8 September 28, 2006 QuoteI have most of my savings in a HSBC online savings account with a %5.15 interest rate. Nice interest rate - What's the minimum balance? Easy Does It Quote Share this post Link to post Share on other sites
AFFI 0 #9 September 28, 2006 Spend all your savings on skydiving, then run your credit to its limits and beyond so you can skydive more, then start skydiving for a living until you have a reason to return to the real world... Quote Share this post Link to post Share on other sites
TrickyDicky 0 #10 September 28, 2006 Best thing to do is always pay off debts before you save anything. If you have a credit card, pay it all off. The idea of "keeping money for a rainy day" when you have debts is a stupid one. You should pay off the debts then you have the credit card for emergencies, and not the other way round. UK Skydiver for all your UK skydiving needs. Quote Share this post Link to post Share on other sites
Mostly_Harmless 0 #11 September 28, 2006 There are no minimum balances and you can start it with as little money as you want ($1+). I have it linked to my Washington Mutual checking account (wamu is closer to me then any HSBC bank) so that I can deposit money in there and transfer it directly to my HSBC account. They also give you an ATM card that you can use at any ATM to pull money from your account. With such a high interest rate (it keeps going up through out the year) it competes with a CD but without having to make a 5 year commitment with your money. Unlike a CD you can access your money anytime you want. I have gotten a bunch of friends to switch over and personally I have made over $1000 in interest in the short time I have had it. Check it out: http://www.us.hsbc.com/1/2/3/personal/savings/online-savings?code=mdtsp *my bad the interest rate is 5.05%_________________________________________ www.myspace.com/termvelocity Quote Share this post Link to post Share on other sites
jumpjunkie2004 0 #12 September 28, 2006 Based on the time value of money and the fact that your CC debit is most likely accuring more interest that you can earn with savings, you should pay off your CC debt. However, I'd be happy to take the money off your hands so that you don't have to figure out which to do : )Jump, Land, Pack, Repeat... Quote Share this post Link to post Share on other sites
mailin 0 #13 September 28, 2006 better interest rate at emigrant bank. www.emigrantdirect.comArianna Frances Quote Share this post Link to post Share on other sites
Mostly_Harmless 0 #14 September 28, 2006 I looked at a few places before going with HSBC but I found HSBC to have the best overall rate through out the year. INC.com, citibank, and others offer great interest rates on online savings account. I only have experience with HSBC and I can tell you that they also have great customer service too. Shop around and see what you like the best. Anyway you go it's better then a regular savings account (my interest rate with wamu with .75%). Shop around._________________________________________ www.myspace.com/termvelocity Quote Share this post Link to post Share on other sites
Diezel 0 #15 September 28, 2006 Transfer the CC balance to another institution with promotional 0% rate for balance transfers for at least 6 months and buy a 5.5% 6 months CD from Citibank. After 6 months you have paid no interest on your CC debt and earned 5.5% APY on your CD. Then you can look around again and see if you need to pay off that CC debt or do it again. In any case, good luck! Quote Share this post Link to post Share on other sites
The111 1 #16 September 28, 2006 For all those comparing savings accounts. Mine (UFB) is no longer listed for some reason.www.WingsuitPhotos.com Quote Share this post Link to post Share on other sites
jheadley 0 #17 September 28, 2006 When I was looking for online savings accounts, I read a lot of horror stories about Emigrant Direct. Horrible customer service and extremely unreliable. It takes 2-3 weeks to even start your account. I went with ING Direct. The interest rate is not as high (I think it's around 4.5%), but it's very very easy to sign up for and very easy to use. You also can get a 25 sign up bonus. Quote Share this post Link to post Share on other sites
mailin 0 #18 September 28, 2006 No problems here - I regularly transfer thousands in and out of that account every month. I've lost my password a dozen times and they've changed formats equally as many times and I've had to call them - they're great! Yes it takes time to set up the account because stuff has to be mailed to you to verify identity and other info, but never 2 -3 weeks in my experience. Communication with them has been great, couldn't be happier with them now that they've updated their website usability JenArianna Frances Quote Share this post Link to post Share on other sites
kelpdiver 2 #19 September 28, 2006 QuoteBest thing to do is always pay off debts before you save anything. If you have a credit card, pay it all off. The idea of "keeping money for a rainy day" when you have debts is a stupid one. You should pay off the debts then you have the credit card for emergencies, and not the other way round. To the extent that your credit card can be used later. For example, you can't (easily) pay your rent with a visa card. Even if you have debt, you want to have at least enough cash to pay your rent and other non chargeables for a couple months. And if you can get a teaser rate that's close or below the 4.5% typical of an account like ING, staying liquid may have some advantages. Of course only if you have a plan to pay off that debt, not to ignore it and see that bank balance as a new canopy or 3. Quote Share this post Link to post Share on other sites
ntrprnr 0 #20 September 28, 2006 QuoteSay you've got a nice chunk of change in savings - - Pay off the cards ,first and foremost. then cut up all but one, preferably an AmEx that forces you to pay off at the end of the month. Without a monthly chunk going to pay back cc's, you'll be surprised how quickly you can recapture your savings._______________ "Why'd you track away at 7,000 feet?" "Even in freefall, I have commitment issues." Quote Share this post Link to post Share on other sites
Shotgun 1 #21 September 28, 2006 Pay off the debt! I had $30K on my credit cards when I moved from Texas to California... and I (luckily) made a nice profit on the condo I sold at the time... It felt so good to write a couple of big checks and pay off my debt, and I haven't been in debt since then! I still use my credit cards, but I pay them off every month. (Oh, but I was able to put a nice amount of $$ in the savings at that time too.) Quote Share this post Link to post Share on other sites
lawrocket 3 #22 September 28, 2006 I used to keep money in the bank for a rainy day, meanwhile having credit cards to pay. Boy, it was stupid. I learned. I only use credit cards for business now (getting miles) and pay off the credit card every month. I learned that unused credit is like money in the bank. It is much cheaper to have $3k in the bank and $5k of unused credit than it is to have nothing in the bank, $3k on credit, and $2k of unused credit. My wife is hotter than your wife. Quote Share this post Link to post Share on other sites
BillyVance 34 #23 September 28, 2006 pay off the credit cards first so you don't waste money paying interest on the balances."Mediocre people don't like high achievers, and high achievers don't like mediocre people." - SIX TIME National Champion coach Nick Saban Quote Share this post Link to post Share on other sites
SpeedRacer 1 #24 September 28, 2006 there's good debt & bad debt. good debt is mortgage: it is usually very low interest AND the interest is tax deductible. So you can take the $ you would have used to pay off your mortgage early & put it into profitable investments. BAD debt is credit cards. High interest rate & NOT tax deductable. Ever hear the phrase "Invest in your debt."? That means pay off your credit cards FIRST. It's like investing in a tax-free, high interest, and no-risk investment. Speed Racer -------------------------------------------------- Quote Share this post Link to post Share on other sites
bloody_trauma 2 #25 September 28, 2006 in case no ones told you yet... pay off your debt and then go put the rest on hookers/ gigolos/ midgetsFly it like you stole it Quote Share this post Link to post Share on other sites
