Pay down credit cards or save money?
October 1, 2010 5:53 AM Subscribe
My parents are loaning us $10,000. Should we save it or use it to pay down credit cards?
posted by fantoche to Work & Money (42 answers total) 6 users marked this as a favorite
We have no savings and my husband's job is somewhat precarious. I am unemployed. We don't own anything of value. We have cut everything we can from our lives (cable, etc) and we can still only pay the minimums on our cards. We do not use the cards.
We have two cards with large balances and atrocious interest rates:
Mastercard $21000 at 24.99% and Discover at $7000 and 25.99%
I feel better having that money in the bank just in case he loses his job. Once I find a job we can pay down the cards. My parents are not charging us interest and will let us pay it off over 5 years. What should we do?