Need advice
Hi everyone,
I filed a no-asset BK7 in 2004 due to a divorce, a bout of unemployment and resulting credit card debt. I'm now 60 years old, fortunately employed full-time and earn a decent salary - $49K a year but in South Florida which has a very high cost of living. Not complaining though because I know some are worse off than I am.
I carefully rebuilt my credit over the past 3 years, saved as much as I could, lived frugally, bought a used car in cash, and then was able to buy an older (built in 1980) condo apartment last year with 100% fixed-rate financing at 6.44%. I have EXACTLY $5,000 in a savings account after the closing costs, initial repairs, moving expenses, etc. I really can't save anymore on a regular basis because I am also contributing $150 every 2 weeks to a retirement plan. Remember, I am 60 years old.
All is well except that.. and here is my question: I have just incurred $2,200 in expenses between my condo air conditioner unit, my car's a/c compressor and a new stove because the old one was 27 years old and died. I put all that on my no-fee WAMU Visa at 11.49% APR. I can only pay about $100-$125 per month toward that debt.
I wonder if I should just dip into my $5,000 emergency fund and pay that off, or pay off half of it, or what. I know I'm throwing money away in interest, but after having gone through the situations that led me to bankruptcy I'm just so scared not to have a couple thousand in the bank, as liquid money, for emergencies.
If there is anyone here with financial expertise could you please tell me what I should do? Cut my only savings/cash reserve in half and pay off the CC debt, or keep my savings liquid and try to pay off the CC debt ASAP?
You know, whoever said that when it rains it pours, deserves a Nobel prize in philosophy!
Thanks for any feedback. I'm just so scared about having ANY kind of credit card balances after my bankruptcy.
I filed a no-asset BK7 in 2004 due to a divorce, a bout of unemployment and resulting credit card debt. I'm now 60 years old, fortunately employed full-time and earn a decent salary - $49K a year but in South Florida which has a very high cost of living. Not complaining though because I know some are worse off than I am.
I carefully rebuilt my credit over the past 3 years, saved as much as I could, lived frugally, bought a used car in cash, and then was able to buy an older (built in 1980) condo apartment last year with 100% fixed-rate financing at 6.44%. I have EXACTLY $5,000 in a savings account after the closing costs, initial repairs, moving expenses, etc. I really can't save anymore on a regular basis because I am also contributing $150 every 2 weeks to a retirement plan. Remember, I am 60 years old.
All is well except that.. and here is my question: I have just incurred $2,200 in expenses between my condo air conditioner unit, my car's a/c compressor and a new stove because the old one was 27 years old and died. I put all that on my no-fee WAMU Visa at 11.49% APR. I can only pay about $100-$125 per month toward that debt.
I wonder if I should just dip into my $5,000 emergency fund and pay that off, or pay off half of it, or what. I know I'm throwing money away in interest, but after having gone through the situations that led me to bankruptcy I'm just so scared not to have a couple thousand in the bank, as liquid money, for emergencies.
If there is anyone here with financial expertise could you please tell me what I should do? Cut my only savings/cash reserve in half and pay off the CC debt, or keep my savings liquid and try to pay off the CC debt ASAP?
You know, whoever said that when it rains it pours, deserves a Nobel prize in philosophy!
Thanks for any feedback. I'm just so scared about having ANY kind of credit card balances after my bankruptcy.
Comment