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Updated almost 6 years ago on . Most recent reply

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Zachary Zinn
20
Votes |
39
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Save or Pay off Debt?

Zachary Zinn
Posted

Question for you all to see what makes more sense to do right now.

Debt: I have $15k in credit card debt that has an interest rates of 10-16% depending on the card. Minimum monthly is $350 but I usually put a little extra to about $500 just to work it down. Only other debt is a car payment but that isn't going anywhere for a while

So currently I have $9500 saved towards either buying a home or paying debt. I'm planning to buy a multi family home so it will pay for its self, just have to wait for the right one to pop up. That said I'm also wanting to be debt free (minus car). For the last 5 months I've been saving between $1500-2000. Also have a 730 credit score....depending which one you ask and when lol

So my question is should I keep saving for the multi family, or get rid of all of my credit card debt so that my income needs are lower? Part of it also plays into my job, I'm a home inspector and can set my own schedule so if I had less debt I could cut back on how much I had to work and be able to enjoy life more. 

Thoughts and opinions are always appreciated. 

Most Popular Reply

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2,336
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Matthew Irish-Jones
  • Real Estate Agent
  • Buffalo, NY
2,328
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2,336
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Matthew Irish-Jones
  • Real Estate Agent
  • Buffalo, NY
Replied

@Zachary Zinn how can you have 15K in cc debt and be saving $1500-$2000 per month for five months at the same time?  Instead of going into debt to save, pay off your cc debt.  You are paying an extra 10-16% interest to save X dollars at 0% interest. 

You should pay the debt, figure you how to save $1500-$2000 after you have paid it... then use the money to invest while being debt from on cc.

  • Matthew Irish-Jones
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Irish Jones Realty
4.8 stars
43 Reviews

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