Anybody been in debt and got out?

[KristinaB]

Not too sure what my rate is on the car loan, but we refinanced due to a cut in pay, so my payments are now $187.74.

 

[TXgolfer]

This is about whether a person should start a savings account for "life happens" fund or put every penny toward paying off debt. Ms. Singletary (and I) both recommend trying to do both, even if your savings amount is small.

The reason for doing this is that "life happens" to ALL of us, without exception. Something is always going to come up that you didn't expect. If you are putting ALL of your money toward paying off debt and have no savings at all, then when some small emergency comes up, you end up having to charge it AGAIN, thus wiping out some of the progress you've made, and adding to your overall interest charges.

If you can build up even a small "life happens" fund, say $500 or so, then you've got some fall-back money. That would be enough to pay for, say, a small car repair, or a new tire if you have a blow-out, or a dental emergency if you chip your tooth, for example.

The point is to have a little buffer between yourself and having to use your charge card again and again when it could be avoided.

I understand...and agree for the most part. In Kristina's case I 100% agree.

 

[Royale]

it's bit tricky but depending on your financial situation... that way - you get to have more money in your pocket and also to give you an ability to make more money. When the time comes to pay off big debt, you're in good shape to do so.

Paying off bigger debt first will make you live on paycheck-to-paycheck. It's unproductive and depressing. What you can do is balance transfer your big debt to CC with 0% interest rate for say.... 12 months or so. You'll bite balance transfer fee but it's better than paying monthly interest rate accrued from big debt.

exactly right