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What to do...

June 4th, 2008 at 06:00 am

I did think long and hard before I made the decision to authorize roughly $2k worth of work to be done on my car. I waited to take it into the shop, knowing some of the work needed to be done, until my one credit card was paid off. Since my money is scattered in different banks I figured it would be easiest to charge it and then by the time the money came in from my banks I could pay it off.

However if you look to the left you'll see that I do not have enough in my EF to pay the entire thing off, even with draining it.

So I am left with the 'what to do' dilemma.

I have three savings accounts with roughly $500 each in them. I do not want to leave less than $100 as a balance. With what I have in savings (leaving $100 in each account) and what I have in checking I could pay off $1341 immediately. And about $200 more of the balance on the 1st.

That would still leave about $700 on the card and drain my EF to $300.

The one savings account has an auto transfer of $75 a month so that would start building back up immediately. Once I paid off the CC I would put all extra money into my EF accounts until they got back to $500 each and then start putting that extra cash to my bills.

Originally I was just going to pull out all but $100 out of my brick and mortar savings account and leave the online ones alone. But that was back when I was anticipating only a $800 charge.

I'm afraid if I pull so much out of my EF that I won't be able to recover. But the thought of paying interest doesn't appeal to me either.

3 Responses to “What to do...”

  1. Yankee Gal Says:
    1212577650

    I HATE car trouble!!! It always feels like money thrown away... yet where I live (rural)it is absolutely necessary.
    Hope you don't stress too much over it, it is necessary, right?

  2. ldyfaile Says:
    1212582335

    Yes it all was necessary. And now that it's done I shouldn't have any more major repair work to do for a while. A long while.

  3. koppur Says:
    1212593415

    I understand. I've had to pull a couple hundred out of my EF lately for expenses I wouldn't have been able to afford otherwise. I say if the rate on your CC is higher than the one in your EF account, pay off the charge on the CC, then rebuild the EF. I know for me, it is harder to get extra money to pay of the CC than it is to build up the EF. Saving and watching that account grow is just more encouraging and fun for me than paying off debt.

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