I know this is a question often asked. I am in the military right now and just finished about 5.5 months of temporary duty where I collected a significant amount of per diem. I lived well below my means during this time as to not spend any of it. I will have a check coming to me sometime next week of approx. $4,500 of extra pay from this. Problem is that I have about the equivalent in cc debt from my college days. I know the smart thing to do would be to pay off the cc since the interest rate is higher than the savings rate. However, I am having a hard time having a large sum of extra money like that come to me and not seeing it help grow my savings account.
My intentions have been to just pay off the cc, but lately I have been thinking of splitting it and savings half and paying half the card off. Is this just a stupid idea? Again, I realize long term I will end up "losing" money because of the difference in interest rates but something about me makes me feel better having some extra savings.
Thoughts?
My intentions have been to just pay off the cc, but lately I have been thinking of splitting it and savings half and paying half the card off. Is this just a stupid idea? Again, I realize long term I will end up "losing" money because of the difference in interest rates but something about me makes me feel better having some extra savings.
Thoughts?