She charged thousands to a credit card right before the coronavirus hit to pay for home renovations, planning to pay it off quickly and expecting her income to remain the same
series. The idea is that having an emergency fund can break the reliance on credit cards.
But, I've always felt in control of my credit card use. Like the decision to spend on the renovation projects, most of my credit card swiping comes after careful consideration. I'm not someone who recklessly spends, so I didn't need the emotional control of avoiding credit cards at all costs. In my mind, it made much more sense to avoid paying interest. I would rather pay $1,000 toward credit card debt and save money every month on interest than have it collecting minimal interest in a savings account. Plus, in a real emergency, I could use my credit cards and then create a plan to quickly pay them down. Now that our home projects are done, I sat down to crunch the numbers.
But, the minimum monthly payment on the debt we racked up during the renovations is substantial: about $200 a month. A significant chunk of that is interest. By prioritizing payoff, I can reduce our outgoing expenses and save money on interest. Both of those ideas make lots of sense to me at a time when we're tightening our purse strings. During this economic crisis, I'm doing my best to carefully budget my income.
Of course, in an ideal world I would be able to handle financial challenges with cash on hand, but for now I would rather that cash be working to reduce my overall debt, and to improve my financial security for the future.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Why coronavirus recession recovery will be faster than Great Depression - Business InsiderIssuing state and local aid before possible budget deficits can help avoid 'a huge drag on the economy,' an Economic Policy Institute director said.
Read more »
Why cruise lines will be loser in $500 billion corporate bailout program for coronavirus - Business InsiderThe largest cruise lines are incorporated outside the US. That means they won't be able to get a cut of the bailout money under Trump's stimulus law.
Read more »
Why Index Ventures invested in $2 billion productivity startup Notion - Business InsiderThe young startup had previously avoided taking venture capital from established firms, but took on Index Ventures amid broader market uncertainty.
Read more »
Amazon Workers are afraid to go to work — here's why. - Business InsiderAmazon workers claim the company is not doing enough to prevent the spread of COVID-19 throughout their facilities and the communities they serve.
Read more »
Why has ‘Tiger King’ captured everyone’s attention?The Netflix documentary series "Tiger King" has been the talk of the internet in recent weeks. Why did this bizarre tale become the public&39;s go-to pandemic viewing?
Read more »
Surprising COVID-19 hot spots: Why coronavirus still threatens rural areasDr. Marynia Kolak is the assistant director for Health Informatics at the Center for Spatial Data Science at the University of Chicago, which recently released a U.S. COVID-19 Atlas, providing county-level data on COVID-19 cases to help locate emerging hotspots for the disease. 'A lot of hotspots
Read more »