Pay down debt or save the money
Hi Terry,
I’ve recently been let go from my employer due to COVID. I am going to receive a severance check of around $6,000. I’ve already been hired at another company so income is OK. I also have a decent savings account as well. The goal is to eventually buy a house later this year, but is it better I pay down debt with this money or save it? I believe total of credit card debt I have is ~$6000 so it would use all of the severance.
Thank you
Terry Says
Even at the “lowest” rates, that credit card debt is digging a deep hole for you! And it might even cost you more in interest if you take out a mortgage. So, since you have a decent savings account on the side, definitely pay off this credit card debt now — before the money is “wasted” on something else!!
