Comments on: Ask the Piggy Bank: Credit Card v. CD

By: Miranda

Miranda — Thu, 08 Jan 2009 15:38:24 +0000

:D I think the point I wanted to make was that car title and payday loans “count” more against you on your credit report and your credit score. I agree that a payday loan is better, since it doesn’t result in your car being taken.

By: John

John — Thu, 08 Jan 2009 15:05:59 +0000

Yes, but you said nothing about payday loans or car title loans. haha!

Car title loans are secured loans. The difference between car title loans and payday loans are that you don’t lose your car if you are unable to pay it back. By the way only a very small percentage of people that get a payday loan are unable to pay it off. Unfortunately horror stories always plague the payday loan industry. There are always horror stories with other loans as well though (AKA Mortgages, especially recently)

Makes much more sense to me to have a payday loan, though than an actual car title loan.

I’m sorry to be so far off topic!

By: Economic Stimulus Plan from President-Elect Barack Obama « Credit Cards, Credit Reports, and Debt Topics

Mon, 05 Jan 2009 22:03:02 +0000

[...] Pay down credit card debt. [...]

By: miranda

miranda — Mon, 05 Jan 2009 21:38:40 +0000

In the list of Debts To Be Paid Off, I agree with Jerry that credit card debt should be paid down first. Only payday loans and car title loans should be paid off before credit card debt.

By: Jerry

Jerry — Mon, 05 Jan 2009 21:34:40 +0000

It is important to make sure that you pay down your credit car first and foremost. I know you’ve had several other people confirming this as well, but it is really important to get this debt off your hands, especially at 14%! Wow! That is quite a bit. Do you think you would be able to get a different credit card? That might be another option, even though I know credit card companies aren’t giving out many cards or lines of credit right now.

Whatever you do, Good Luck!

By: miranda

miranda — Mon, 05 Jan 2009 14:36:52 +0000

@Jeflin You make a good point that the root of the problem needs to be addressed. If the credit card is paid off immediately, will a lesson be learned? Since the CD does not cover the entire amount of the credit card debt, the remainder could be whittled. Hopefully, the reader, and the rest of us, are attempting to avoid piling up more debt.

By: jeflin

jeflin — Sun, 04 Jan 2009 10:56:22 +0000

In this case, cashing out the CD to solve the credit card debts makes financial sense but it doesn’t go to the root of the problem, which is, why is there a balance on the credit card in the first place?

The CD becomes an easy way out instead of considering options like planning a budget, cutting down on expenses and generally living within your means.

I think keeping the debt, paying the high interest and whittling it down monthly may be a better financial education in the long term.

By: Weekend Update for January 3, 2009 » Let’s Blog Money » Blog Archive

Sat, 03 Jan 2009 17:20:42 +0000

[...] @ Yielding Wealth posted Ask the Piggy Bank: Credit Card v. CD. Again, quite a lively discussion, although I would have liked to see some of the commentators [...]

By: Eric J. Nisall

Eric J. Nisall — Sat, 03 Jan 2009 02:36:33 +0000

Sorry Miranda, I just had to bring up the dreaded “D” word!

By: miranda

miranda — Sat, 03 Jan 2009 01:51:55 +0000

I agree, Passive Dad. A little more info would be quite helpful. I agree that it is a good idea to weigh whether or not the CD money is needed for other things. I assume that it isn’t, since the reader seems to be deciding between paying down debt and just letting it sit.