[USER]

I’m on the fence about doing this. I’ve got just under $16k in a HYSA. I am in cc debt that I’ve been paying off. Almost have one card paid off.

I’m debating on transferring $2,500 over to my primary checking account to pay off one card fully ($1,500) and put $1k towards another card.

That would put me at 3 cards to pay off. From there, I will be able to pay off the remaining 3 cards off completely if I use the snowball method.

From there, I can really save better each month.

Thoughts?

[Dave]

Unless some of the cards have zero or super low rates, why would you have any $ at all in a HYSA when you are paying credit card interest?

[Jennifer]

Pay off the debt! You can rebuild your HYSA later!

[D’Angela]

Keep one months of expenses for a just in case emergency. Pay off all the cards.

Especially if you are paying any interest.

[Heather]

Yesss yes yes – Pay it off. Not really considered savings if you’re paying interest on ccard debt

[Jasmine]

Pay it off. The interest rate on the CC is higher than your HYSA.

[Matt]

Keep a tiny emergency fund and pay everything else NOW.

[Yolanda]

If your income is consistent, keep $1K in savings and throw the rest at the debt.

The payments you are making on the cards now can rebuild your savings.

[Shelley]

That said, since you’re relying on your HYSA as a buffer for emergencies and future savings, consider how much of a cushion you’d be left with after making the transfer.

If you feel comfortable with the balance that would remain in your HYSA (and you’re confident you can continue making consistent progress on paying off the other cards), this strategy could help you get over the hump quicker.

Just make sure you don’t dip too low in your emergency savings, as unexpected expenses could come up.

[Scott]

Keeping money in the savings account while having cc debt is an illusion of security.

Pay it all off asap.

[Author]

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