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Hi, I'm elderly -- have only disability income and a 3 month emergency cushion.  CC debt is manageable IF I pay minimum, but I could start to pay it down and save  even less or nothing.  Should I pay down CCs or save some?  Would appreciate links or suggestions for sources to learn more.  Thanks!

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I suspect the interest you are paying on your credit card debt costs you more than any interest you might be making on your current savings.  Th9is is limiting how much you can save every month.  If this is true, the math will tell you that the sooner you pay off your credit cards and avoid the 20% interest per month, the faster you will be able to save that 20% interest payment every month and divert it to even more monthly savings.  Hope this helps.

@PupPenny posted:

Thanks very much, Phil.  Your simple logic dictates and makes complete sense.  Sounds like discipline and focus are the keys -- that and a positive attitude.  Really appreciate your input on this!

Here is some simple math.  I just googled it and found a source saying the average annual  credit card interest charge is 17.8%.  Interest on a bank account pays less than 1% interest.  Investing in bonds may give a couple of percentage points and lets say investing in a broad based index fund of stocks may bring 9% on the aggressive side. With inflation running lets say 2.5%, having money saved in a bank account is not keeping up with inflation.  But not paying off your credit card is likely costing you 17+% which is even worse.  Pay off the credit cards and carry zero credit card debt and build/invest savings in something other than a bank account.  Make sure you also first have a 6 month savings (cash) as an emergency fund. Hope this helps.

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