Paying off that Debt!

Posted by Mrs Money on May 24th, 2008


I haven’t updated the status of my debt reduction lately. I think that’s partly because I feel guilty that I haven’t made that much of a dent in it. I’ve decided that with all the talk about having a baby, gas prices skyrocketing, and the unstable economy that I’m going to be throwing every extra “snowflake money” into our savings account.

I go back and forth between paying off debt and saving money. I’ve got quite a nice chunk of change in our savings account now, but I want to keep building it up in case something happens. I think about paying off our student loan and mortgage early, but then I get worried that we’ll need a new car or something will break or something awful will happen and then I decide to just put the money in savings.

It’s almost an obsession, which I’m sure it can be for a lot of people. “Should I pay off debt, or save money?” is one of the most prevalent, if not number one, question among smart savers these days.  In our situation, it’s a toss up, I think.  Our loans are at good interest rates (nothing more than 6.89%), and I think that if we need to get a loan in the future there’s a possibility that the interest rates may be much higher than they are now.  If I save enough money, I won’t need to borrow any.

Any way I look at it, I’m still paying off debt and saving money at the same time, so it’s a win-win situation. Maybe when things start looking up I’ll put more money towards paying off debt faster.  But for now, the peace of mind of having that savings account have a larger balance outweighs any other doubts I may have.   And that’s all that matters.

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3 Responses to “Paying off that Debt!”

  1. Rick Vaughn says:

    Good post!

    I agree you should always pay yourself 1st. My suggestion would be to automated your debt repayment and forget about it and focus your mind on making more money.


  2. Mrs Money says:

    Rick- I should set that up as an automatic payment. Thanks for the suggestion! I think right now I’m going to focus on making more money somehow. :) Thanks for your comment!



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