Sharon from Musings of a Midlife Mom asked:
Hi HS,
I was just wondering. You have a large amount in savings that can pay off all of your debt. Why haven't you done that? Just curious.
Sharon,
We had an insurance settlement for $10,500 due to damage from Hurricane Ike. I did not think we had any damage but our agent insisted so I took the money and put it in the savings account. The wife and I don’t think this is our money, so I’m not really sure what to do with it, I guess If we have any major home emergencies then we can use this money but for now it can sit in our savings account.
I should be able to pay off all my credit card debt before April 2009, I don’t want to take any shortcuts, I want to remember how difficult it is to pay back credit card debt.
HS
Menu Monday
2 hours ago
4 comments:
I think it's a great idea to put that money aside for a future emergency... These are not times to be wiping out EF to pay credit card debt... And you'll have yours paid off soon!!
HS,
I completely understand your thinking on that. If you pay it off with money not "earned", you may go back to your "old" ways. I have that fear on a daily basis, but with the help of fellow bloggers, I've been successful in not doing it! Thanks for taking the time to answer! You are doing a great job.
Sharon
H.S.
First of all, CONGRATULATIONS on paying of the Discover Card. Mine is still just over $7,000,and I CAN'T WAIT until I am where you are!! And, we too have a pretty big savings that could essentially "knock out" a good portion of my debt. HOWEVER, like you, this journey isn't just about becoming DEBT FREE, it's about changing old, selfish habits. If I am always "saved" by our savings, I will never feel a sense of accomplishment. I will never get rid of this UGLY SICKNESS, because that is what it is....a compulsive "sickness", if I take "shortcuts" to wipe out my debt all the time. THIS TIME is going to be different. I MEAN IT! This time I am going to WORK MY TAIL OFF to reach my goal, and in the end, become the person that Christ formed me to be! I will also take hold, with pride, the life that He has waiting for me...a life of happiness, love, joy and pure contentment! Thank you for sharing..I love your site!
DEBT FREE JOURNEY
debtfreethroughchristwhostrengthensme.blogspot.com
For those with exemplary discipline, yes, paying down those cards instead of piling up savings is the better money play.
But like Debtfreejourney says, for the vast majority of us (and most definitely myself included), debt has less to do with money and more to do with mentality. The act of breaking free is worth as much as being free itself.
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