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Debt Destroy

Debt Or Savings!

jinzapa Rep Points:
Posted on June 17, 2010 at 10:06 am
This is a constant battle with my wife and I. Somehow she got $1500 into debt last year. It started off as a $300 credit card (her first credit card at the age of 25) and she did not tell me the limit got raised. Long story short, I was upset but now we are paying it off.Well we have nothing in savings..maybe $300.. which is really not much. My wife puts $10 a week into there but I just found out that whatever she puts in there during the month she takes out and puts towards that credit card debt. So we've managed to get it from a maxed out $1500 down to $940 as of last statement.I want to get the debt gone, but I want something into savings.. in case of an emergency.. auto repair.. something that's going to go wrong. She says if that's the case we can just use the credit card. SHe wants to put everything toward the debt, then start building savings.I say we should pay off the debt AND put money into savings. My feeling is that if something happens then we are tacking on MORE debt that we just paid off!!!!!!! Then we'll have more debt and NO savings!!!HELP!!! I do think I am right.. it makes sense to me.. but she thinks the chances of """"something happening"""" are slim to none and I think he's wrong.. I don't want debt, and I never want to use the stupid credit card again!

Sabastian6 Rep Points:
Posted on August 17, 2010 at 12:40 am
The answer I have for this argument on debt vs saving is a bit complicated, and includes a little of both, but the short version is: both are important.