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Can I get some financial advice? Credit card vs depleting savings?

Asked by redhen4 (520points) February 28th, 2014

I have the following “money” available to pay a $3000 roof repair:
Credit card $3100 @ 10.9% interest (has a $6800 balance right now)
Savings $1000 (making very little interest)

CC payments would be $250 if I use all $3100, or $225 on $2000

My question is which do I use? Deplete half my savings to have a lower credit card balance, or charge all $3000 on the card? (the balance of my savings is earmarked for other repairs)

My rate of income to out go is about a wash if I stop my automatic deposit of $50 going to savings.

So, use credit card for $3000 or take $1000 out of savings and put $2000 on credit card.

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