Paying off that Debt!

Posted by Mrs Money on May 24th, 2008

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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.

    [Reply]

  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!

    [Reply]


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