Tuesday, August 21, 2007

Paydown debt or save?

I will be getting a small bonus next month. I am debating whether to pay down my 0% credit card debt or to put it in a CD earning 5%. From a financial stand point it makes the most sense to just put the money in a CD, however, from a psychological stand point it would be nice to see my credit card balance go down. I have calculated that the money would earn about $75 dollars in a 6 month CD. I will also have enough tax refund from my tax return next year to completely pay off the credit card debt. This is a tough decision.

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