Options (50k cash, 200k 401k, 2k a month cash) to pay off 20k cc balance. Which one would you use?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I'm not understanding why you would not use the cash? Why pay interest to either your credit card of your 401K? I'm not seeing any advantage.

I like a cushion for emergencies.

Your emergency is that you racked up 20k in cc debt.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Use the cash on hand and rebuild savings over time?

Use monthly left over to pay off balance gradually while paying cc interest?

Loan from 401k and pay off balance ASAP with monthly cash?

With that kind of money and obviously high income there is no excuse for having 20K in cc debt. Can't imagine how that happened.

Bought first house and furnished it and replaced some things. Most of the cc debt from tools, furniture, replacing/fixing appliances.

None of this was emergent.

[Anonymous]

Pay your debt. Your credit line could always be used again in a true emergency beyond your current funds. Why on earth would you pay interest when you have money in the bank?

[Anonymous]

Anonymous wrote:Pay your debt. Your credit line could always be used again in a true emergency beyond your current funds. Why on earth would you pay interest when you have money in the bank?

Poster had a burning desire to give the bank 12k to use 60k?

Or more likely financial illeliteracy. It's a serious problem.

[Anonymous]

I am so confused by this post. You don't have a cc problem. You are fine. Pay your dent and move on with your life.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Use the cash on hand and rebuild savings over time?

Use monthly left over to pay off balance gradually while paying cc interest?

Loan from 401k and pay off balance ASAP with monthly cash?

With that kind of money and obviously high income there is no excuse for having 20K in cc debt. Can't imagine how that happened.

Bought first house and furnished it and replaced some things. Most of the cc debt from tools, furniture, replacing/fixing appliances.

Why didn't you pay for all of that using the cash you had in hand? You sound dumb.

Hence why I am asking. Would you cut your safety net near half, if you have one.

Dude, you already cut your safety net in half. Pay off the dang credit card. Take your two grand a month and put half back in your emergency fund and half into a new sinking fund for house expenses.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Use the cash on hand and rebuild savings over time?

Use monthly left over to pay off balance gradually while paying cc interest?

Loan from 401k and pay off balance ASAP with monthly cash?

With that kind of money and obviously high income there is no excuse for having 20K in cc debt. Can't imagine how that happened.

Bought first house and furnished it and replaced some things. Most of the cc debt from tools, furniture, replacing/fixing appliances.

Why didn't you pay for all of that using the cash you had in hand? You sound dumb.

Hence why I am asking. Would you cut your safety net near half, if you have one.

I would not furnish a house on credit cards or use my safety net. Using credit cards is a poor man's burden. Not someone with a decent income and professional job who simply cannot delay gratification.

[Anonymous]

Thanks all. Going to use cash and replenish.

[Anonymous]

Anonymous wrote:Pay your debt. Your credit line could always be used again in a true emergency beyond your current funds. Why on earth would you pay interest when you have money in the bank?

+1

The credit card can serve as your safety net in the unlikely event that you have an emergency requiring more than the $30K you'll have left in savings. Paying interest on a non-equity-building asset when you don't need to is stupid, stupid, stupid.