Comments on: Should You Use Savings to Pay Off Debt? http://www.mydollarplan.com/should-you-use-savings-to-payoff-debt/ because money doesn't grow on trees Thu, 09 Feb 2012 14:28:55 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Forex Trader 4 Life http://www.mydollarplan.com/should-you-use-savings-to-payoff-debt/#comment-10543 Forex Trader 4 Life Wed, 10 Mar 2010 06:20:14 +0000 http://www.mydollarplan.com/?p=1109#comment-10543 Should your emergency fund be equivalent to 6 months of your average monthly expenses? Or one year? Or is it more dependent on the general economic situation? Should your emergency fund be equivalent to 6 months of your average monthly expenses? Or one year? Or is it more dependent on the general economic situation?

]]> By: Oscar At Real Life Money Management http://www.mydollarplan.com/should-you-use-savings-to-payoff-debt/#comment-10531 Oscar At Real Life Money Management Mon, 08 Mar 2010 12:34:53 +0000 http://www.mydollarplan.com/?p=1109#comment-10531 Yes you should to a point. When in debt paying off mode, always maintain a small emergency savings of about 1-2,000 dollars just to cover yourself. Once you have that saved up put all you got into getting the debt paid off. I like to use the debt snowball technique as it is the most effective way to get rid of your debt. Yes you should to a point. When in debt paying off mode, always maintain a small emergency savings of about 1-2,000 dollars just to cover yourself. Once you have that saved up put all you got into getting the debt paid off. I like to use the debt snowball technique as it is the most effective way to get rid of your debt.

]]> By: Madison http://www.mydollarplan.com/should-you-use-savings-to-payoff-debt/#comment-10514 Madison Fri, 05 Mar 2010 16:21:33 +0000 http://www.mydollarplan.com/?p=1109#comment-10514 Good reminder about Penfed. I'm a huge fan of Penfed, especially since we keep our mortgage there at a fantastic 4%! Good reminder about Penfed. I’m a huge fan of Penfed, especially since we keep our mortgage there at a fantastic 4%!

]]> By: Patrick http://www.mydollarplan.com/should-you-use-savings-to-payoff-debt/#comment-10436 Patrick Tue, 23 Feb 2010 15:10:07 +0000 http://www.mydollarplan.com/?p=1109#comment-10436 If her rate is 6% plus she should consider refinancing with PenFed at 3.99%. They are offering a $100 bonus to refinance. You have to become eligible to join, but I have that information on my site. If her rate is 6% plus she should consider refinancing with PenFed at 3.99%. They are offering a $100 bonus to refinance. You have to become eligible to join, but I have that information on my site.

]]> By: Lakita (PFJourney) http://www.mydollarplan.com/should-you-use-savings-to-payoff-debt/#comment-10384 Lakita (PFJourney) Sun, 14 Feb 2010 16:34:20 +0000 http://www.mydollarplan.com/?p=1109#comment-10384 I'm taking a modified Dave Ramsey approach. Build a small emergency fund ($1000 was too small for me, so I got it to an amount I would be comfortable with) Snowball payoff the rest of the debts. I recently discussed if I should include my student loans in my snowball or invest. I am going with the math and accelerating payments. I get what you're saying about the liquidity of money, but that is something I'm willing to sacrifice for a couple years while I'm in debt. Kita (PS: I haven't completely stopped funding savings, just not as aggressive as debt payoff) I’m taking a modified Dave Ramsey approach.

Build a small emergency fund ($1000 was too small for me, so I got it to an amount I would be comfortable with)

Snowball payoff the rest of the debts.

I recently discussed if I should include my student loans in my snowball or invest. I am going with the math and accelerating payments.

I get what you’re saying about the liquidity of money, but that is something I’m willing to sacrifice for a couple years while I’m in debt.

Kita
(PS: I haven’t completely stopped funding savings, just not as aggressive as debt payoff)

]]> By: Friday Fiscals: Late-night edition | Mighty Bargain Hunter http://www.mydollarplan.com/should-you-use-savings-to-payoff-debt/#comment-10380 Friday Fiscals: Late-night edition | Mighty Bargain Hunter Sat, 13 Feb 2010 09:46:26 +0000 http://www.mydollarplan.com/?p=1109#comment-10380 [...] My Dollar Plan asks if you should use savings to pay off debt. [...]

[...] My Dollar Plan asks if you should use savings to pay off debt. [...]

]]> By: Friday Finance Findings for February 12th : Generation X Finance http://www.mydollarplan.com/should-you-use-savings-to-payoff-debt/#comment-10373 Friday Finance Findings for February 12th : Generation X Finance Fri, 12 Feb 2010 15:47:16 +0000 http://www.mydollarplan.com/?p=1109#comment-10373 [...] Should You Use Savings to Pay Off Debt? – This is a difficult question to answer. It’s important to have savings for those emergencies so that you don’t have to resort to using credit, but at the same time debt can eat away at your money and cost you thousands in interest. What should you do? [...]

[...] Should You Use Savings to Pay Off Debt? – This is a difficult question to answer. It’s important to have savings for those emergencies so that you don’t have to resort to using credit, but at the same time debt can eat away at your money and cost you thousands in interest. What should you do? [...]

]]> By: Madison http://www.mydollarplan.com/should-you-use-savings-to-payoff-debt/#comment-10371 Madison Fri, 12 Feb 2010 14:09:30 +0000 http://www.mydollarplan.com/?p=1109#comment-10371 And of course, with a student loan, the interest is tax deductible for many people. A loan that cheap and I think I'd keep it forever! And of course, with a student loan, the interest is tax deductible for many people.

A loan that cheap and I think I’d keep it forever!

]]> By: Daniel http://www.mydollarplan.com/should-you-use-savings-to-payoff-debt/#comment-10370 Daniel Fri, 12 Feb 2010 13:33:20 +0000 http://www.mydollarplan.com/?p=1109#comment-10370 I'm in a similar situation, but with 2.8% student debt. This is much lower, and keeping it in a saving account, I'm down just 0.79% (SmartyPig!), but I like the idea of being covered and also having the ability to continue to pay should something happen. I’m in a similar situation, but with 2.8% student debt. This is much lower, and keeping it in a saving account, I’m down just 0.79% (SmartyPig!), but I like the idea of being covered and also having the ability to continue to pay should something happen.

]]> By: Stanley Holmes http://www.mydollarplan.com/should-you-use-savings-to-payoff-debt/#comment-10368 Stanley Holmes Thu, 11 Feb 2010 21:17:31 +0000 http://www.mydollarplan.com/?p=1109#comment-10368 I took out a line of credit for emergency spenditures, used most of my savings to pay off debt and felt secure until my line of credit was revoked when the economy went south. Luckly I have not had an emergency but now I feel as if I should have kept my savings and continued to pay the debt over time I took out a line of credit for emergency spenditures, used most of my savings to pay off debt and felt secure until my line of credit was revoked when the economy went south. Luckly I have not had an emergency but now I feel as if I should have kept my savings and continued to pay the debt over time

]]> By: wayne http://www.mydollarplan.com/should-you-use-savings-to-payoff-debt/#comment-10367 wayne Thu, 11 Feb 2010 21:08:31 +0000 http://www.mydollarplan.com/?p=1109#comment-10367 All for paying off debt and having an efund but modified question I would ask is, "If you paid off loan using efund, how long would it take to get it back to where it was?" If cutting some expenses and perhaps stopping some investment contribution (ie 401k) would help, then look into it. All for paying off debt and having an efund but modified question I would ask is, “If you paid off loan using efund, how long would it take to get it back to where it was?” If cutting some expenses and perhaps stopping some investment contribution (ie 401k) would help, then look into it.

]]> By: Traciatim http://www.mydollarplan.com/should-you-use-savings-to-payoff-debt/#comment-10366 Traciatim Thu, 11 Feb 2010 17:22:51 +0000 http://www.mydollarplan.com/?p=1109#comment-10366 Why not get the best of both worlds. Use the saving to pay off the car loan, open a line of credit with no balance to cover emergencies for now. Use the monthly payment savings to re-establish the emergency fund. This way you save the interest and have borrowed funds in case of emergency (exactly like it is now). Why not get the best of both worlds. Use the saving to pay off the car loan, open a line of credit with no balance to cover emergencies for now. Use the monthly payment savings to re-establish the emergency fund.

This way you save the interest and have borrowed funds in case of emergency (exactly like it is now).

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