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Discussion Starter · #1 ·
I have us on a modified Dave Ramsey plan, so this thinking tells me to pay off in full our Capital One card with the $3000 refund headed our way. The card was at 0% APR but that changes as of next month and will jump to at least 7%.

We only have $3000 in savings right now. That would cover one month of living expenses. Should I throw that refund into savings instead? Dh and I have been pretty lucky so far...we have not felt the effects of the economy at all but I'm worried because if dh were to lose his job (and he IS in banking although fairly secure) we would be screwed.

But after reading DR I am ALL ABOUT getting rid of the debt so it's really hard for me to put that $$$ in savings when I could cross another debt off the list, kwim?

What's the wisest choice?

ETA: we have more debt than just the capital one card....one more cc and a car loan which is why it would feel SO good to get rid of that card!
 

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I am a D.R. follower and I would get rid of the debt. Not only does this take a big weight off of your chest but it will also give you motivation like no other to save. You have 3x the baby emergency fund so you are good to go as far as an emergency. Don't let fear decide your financial decision making. Choose not to participate in this recession. D.R. has the steps set up for a reason...follow them and I promise that things will start to be BEAUTIFUL!!
 

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Discussion Starter · #8 ·
Quote:

Originally Posted by weliveintheforest View Post
I would get rid of the debt (and maybe do a big grocery shop
)
Lol....because next month is a 3 paycheck month for us, I was actually already planning on doing a big grocery shop!
 

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Discussion Starter · #9 ·
Quote:

Originally Posted by Delicateflower View Post
I'm wavering between splitting it 50/50 and paying it off.

How quickly are you paying it off otherwise?
I'm making the minimum payment only because I'm snowballing another cc right now. Minimum is about $50/month.
 

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Pay off the credit card, and then transfer the $$ you were paying each month to your emergency fund until it's fully funded (however you view "fully funded" I know it's different for each family) and then use it for the other cc you're snowballing.
 
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