Current Events > Just got a credit limit increase what should I pay off?

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Well I got a credit increase and both my rent and income tax dept is below $2000 and I could pay off either one or use my savings for either one which I'm trying to avoid

I'm currently off from work for a few weeks and I'm living off my savings in the meantime.
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The thing to really consider is how much the interest is on your credit card versus what the interest is on your income tax. Unless you plan on paying off the card immediately, which given your background information will not likely be the case, the interest on your taxes is likely to be lower than your credit card interest. I would pick rent if anything because you'll need a place to stay.

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Are your savings making money?

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ProfDE posted...

The thing to really consider is how much the interest is on your credit card versus what the interest is on your income tax. Unless you plan on paying off the card immediately, which given your background information will not likely be the case, the interest on your taxes is likely to be lower than your credit card interest. I would pick rent if anything because you'll need a place to stay.

Ah the intrest on the income depot us 4% every month I was going to make payments of $150 a week starting September. I have to check the intrest on my credit card I think its higher.

I'm definitely not paying the full balance of my credit card after at once which is why I prefer this method.

ChocoboMogALT posted...

Are your savings making money?

Well currently no I just had a minor surgery so I'm off for a month with no income or coverage. But yes I've been saving for awhile I have enough to live off my savings for about 2 years.
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If you're savings aren't making money (stocks, bonds, high interest account), just use them. Better to not pay interest than pay interest. You lose some flexibility, but save money in the long run.

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