I have a 2.9%fixed cred-card and my money is in a 4% savings acct, should I save it or pay the debt

My credit card is 2.9% fixed. The balance is 17K. I have 20K in a 4% high-yield savings account. If I make minimum payments, then will I not make more money over the long term?

I have a 2.9%fixed cred-card and my money is in a 4% savings acct, should I save it or pay the debt off fast?

Keep the money in your savings account. You%26#039;re making 1.1% by keeping your money in the savings account.

Don%26#039;t let the nagging feeling of paying a monthly credit card bill fool you. Savings is cash, and cash is king. Here%26#039;s what you do:

Keep the savings account in tact, don%26#039;t touch it. Pay extra every month to your credit card, even $5 if that%26#039;s all you have. If you pay triple the minimum monthly amount, all credit card debt will be paid off in three years.

Good luck.

I have a 2.9%fixed cred-card and my money is in a 4% savings acct, should I save it or pay the debt off fast?

Doubtful

You did not mention your marginal tax rate. If taxes take more than that extra money, with no offset, you are going in debt, buddy..

Many professionals have computer programs that will let you know what the math says about this.

My site, www.EndlessLegacy.US offers a printout. Fill in the info and take it to a local specialist. (I am not licensed in your state, so any advice I offered would have to be free.)

I have a 2.9%fixed cred-card and my money is in a 4% savings acct, should I save it or pay the debt off fast?

Always split 2/3 2 parts bills 1 part savings until the unnecessary bill is gone then save your money full out.

I have a 2.9%fixed cred-card and my money is in a 4% savings acct, should I save it or pay the debt off fast?

You really need to calculate your after tax profit from keeping 17k in your savings account and compare it to the interest charges on the credit card debt. It turns out that the break-even point happens when your marginal tax rate is 27.5%.

So if you are in the 15% federal tax bracket, you are almost certainly better off keeping the money in savings and paying the credit card debt as slowly as possible. If, however, you are in the 25% federal tax bracket, your combined federal and state taxes on the savings account most likely will be more than 27.5%, unless you are fortunate enough to live in a state with no state income tax.