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Re: Should I pay off these pesky credit cards???
Old 01-13-2007, 06:00 AM   #6
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Join Date: Mar 2006
Location: Houston
Posts: 2,431
You'll probably not find anyone of this forum that would suggest carrying credit card debt if there is money to pay it off and still have a very modest emergency fund. Carrying 10% debt to maintain a high level of liquidity or to maintain investment funds is hard to justify.

I carry a 6 1/4% mortgage that I could pay off but I don't because it would seriously deplete my "free" cash -- a liquidity issue. I also plan to downsize within the next 2 years and plan to pay cash for the new place. My carrying cost for the loan is about 1% over my "safe" money.
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