Are You Saving, Spending or Paying Down Debt?

[U2_rocks!]

We don't have any credit card debt. We use our cards a lot to earn airmiles, but we pay them off 100% every month. We do have a mortgage - it's paid by direct debit from our bank account right after the salaries hit, so it's money we never really see. I also have a direct debit going to my credit union, and I'm about to start a money market account because I can get a better rate there than the credit union (the CU gives a tax benefit up to a certain amount, so it's worth having that amount go there). Part of any lump sum bonus that I get goes into company shares (tax benefit) and sometimes to my mutual fund (also tax benefit). I try to max out my tax allowances wherever possible. This isn't in the U.S., by the way. Our tax system encourages certain kinds of saving, which is great.

 

[dislal]

I am paying cc debt, then saving for my Disney trip so I can pay cash, I wish I could just charge it and go in 2009, but I would feel less guilty paying before I go. Oh yeah I amost forgot I am saving to fill my oil tank for the winter, right now it looks like we might freeze because I refuse to pay these prices.

 

[Handbag Lady]

My credit card companies do indeed change the interest rate at their whim. I can decline the changes, though, if I choose to not use my cards. I have done so on two of them (thank you 4 lay-offs in six years for that debt!). I don't use credit cards at this time.

I am paying off debt and saving. I am not spending. We do have a vacation soon but that is paid for in cash.

 

[kelleigh1]

All of the above, but hopefully doing less of the spending and more of the other two. I am working two jobs, so much of the 2nd income is getting saved and some is getting spent on some things that we need.

We just avoided a big "spend" as we were about to buy a used car from someone but decided the deal wasn't a very good one so we backed out and avoided losing a huge chunk of our savings.

 

[overlyspoiled4sure]

We're not carrying cc debt & got the car paid off last month. DH is still working & I filed for social security last spring. I'm using the money to help pay down the house payment so when DH retires in a couple years, the house will be paid for. I plan on adding the car payment amount to my SS money so there's a bit more to put on principal. YAY!!

Our DD & the grandkids are moving out shortly so hopefully the money we've spent on extra food/utilities, etc., can be saved. At least, that's my plan anyway. Getting a couple kittens will most likely put a dent in that plan though...

 

[Galahad]

Saving and spending... and moving almost all of my savings to non-US based banks.

Um....the financial problems are not limited to or even necessarily caused by the U.S. or U.S. banks. Britain is having similar worries and has been for quite some time - quite independently of events in the U.S.

 

[Galahad]

We are lucky to not have any debt - but have always taken the "pay the debt" before you save approach when we did. Definitely do that.

But, if Senator Biden says that it is patriotic to pay taxes, especially for higher income folks then it is most certainly patriotic to go out and spend just as much as you can afford this Christmas. Any way you look at it that would help us. President Bush will not be in office after January. Any improvement in the economy as a result of Q4 activities won't be credited to him. It seems to me that if you are not in debt, that the most patriotic thing you can do after paying your taxes is to spend your money.

 

[PatsMom]

I have no debt so I am spending and saving. Saving for DD's college (next year!) and my retirement (not until she is out of college!). Spending money on family vacations, medical expenses, and a few other splurges since it is DD's last year with us before she heads off to college. DH is retired so he's just spending!

 

[rparmfamily]

Don't have much debt, just a car and the house. I'm making payments but not working too hard on paying them off early.

We always save and invest.

We spend too.

 

[richmond282]

Slowly but surely, paying down debt.

 

[eliza61]

Credit cards can adjust the rate any time they want. Given that, are you saving, spending, borrowing or paying down debt?

I would say all 3. My order of priorities:

1) I'm maxing out my 401K. don't care how much I owe on credit cards, I won't stop that.

2) savings for kids college. We have a 3 month cushion in cash reserve. We will probably borrow to help pay for college

3) Lastly, I'm paying down my debt. I generally make 1 purchase (like my dvc) and then I don't allow myself anymore debt until I get that paid off. We have 1 car note and won't buy anyother vehicles until that is paid off.

 

[C.Ann]

I don't have any debt and don't use credit cards, so my answer would be "saving".. I've cut back quite a bit on spending since last January when I noticed the economy was heading in a dreadful direction..

 

[dairyou]

So I need to ask a question to those who are investing. We have 30,000.00 in the bank that we were saving for a downpayment on another home. We were gong to rent our existing house and live in the new house. Now we decided not to buy another house and invest some of the 30,000.00. With the stock market the way it is I would assume it is a good time to buy in. So, what would you do? There are so many worries out there and people are actually taking their money out of banks because they are scared. We know we can't let this sit in the bank because it's not doing anything.

Sorry to hijack your thread OP.

Deb

 

[Disney Doll]

A little of each.

Whacking away at the VISA balance, saving for retirement, planning a WDW trip.

 

["Got Disney"]

paying everything off and doing a great job of it We have been blessed financially to do so this year so soon it will all be gone, and we had plenty. All our charge cards are gone...saved 30,000 for taxes this year(need some more though), 2 loans gone, ....I am so proud. I thank god for blessing us this year!!!!! and we have been sharing it with our friends and family. We are being fiscally responsible.

May GOD belss you all the same way

 

[csuzannet]

After years and years and years and YEARS of grad school, I've got some CC debt accumulated. I'm paying that off as quickly as I can.

Wish I was saving more, but other than my TIAA-CREF retirement stuff, saving is taking a back seat to eliminating debt.

(Let's not talk about student loans. )

 

[supercarrie]

We are saving, but naturally - my husband and I are both quite crazy about saving. Its something that is constantly in our minds. In fact, this past month, we said that for one month we would go crazy, not pay attention to the account, etc - and we still saved a fair chunk of our net pay (approx 25% compared to our normal 40%).

We do not have huge salaries, either. Just who we are!

There is one loan which needs paying off (finishes in April) which my husband took out before we married. Though we have the money in savings to pay it off, we would rather keep it there. DH works in IT for an investment bank so his job is constantly up in the air.

 

[twojo21]

trying to pay off debt

 

[Jen_in_NH]

We're primarily focused on paying off debt and cutting back on spending. We're also looking at picking up PT jobs. As far as savings, not so much right now. Neither of us has a 401K (we're both in the state retirement system)

 

[Piglet4Ever]

Luckily the only debt DH and I have is our home mortgage and we have been paying more on that. We took out a 30 yr loan for it 4 yrs ago and just checked today and have paid the equivulant of 16 yrs in principle so far, so we are hoping to have it paid off within the next five yrs.