Should I take money from savings to clear my credit card

I have about 1k on my credit card and around 5k in savings. I also owe my boyfriend about 1k for a vacation we plan to take. Should I just take 2k from my savings to pay these off? This would leave me with 3k in savings, and I’d try to build it back up later

Yes

EdwardGenesis said:
Yes

Definitely pay off the credit card since that’s real debt and will gain interest

Unless you have a 0% APR offer (and make sure to read those details), go for it. Your savings interest won’t match the credit card interest. You can save money after your debts are cleared. As for your boyfriend, it’s best to have honest talks about money. If there’s an income gap, the one earning more should help out a bit more when it comes to expenses

@Derry
We have talked this over! There is a gap in our incomes, and we agreed on costs. The 1k for vacation was decided together. He’s fine with me paying him back in parts too. I just dislike being in debt, so I prefer to repay ASAP

@Derry
What are the common traps to watch out for?

Sonny said:
@Derry
What are the common traps to watch out for?

Some offers are only 0% for balance transfers and not for regular purchases. Others might be 0% for both!

If the card has interest, then yes. If it’s a promotional 0% interest period, I’d suggest paying it off without touching savings

Conley said:
If the card has interest, then yes. If it’s a promotional 0% interest period, I’d suggest paying it off without touching savings

That’s right. Savings earn interest too, and many said the card eats up more interest than the savings do. I’m not from the US but in a situation like the original poster’s: I pay my full credit card amount each month, but still have about 1k in credit card debt due to a 0% APR deal. It’s a bit tricky since my limit is 1.5k, making it tough to earn rewards. My goal is to reduce that debt to free up my limit. For now, I’m not adding to savings; I’m focusing on keeping money in checking until I’m comfortable, but I won’t sacrifice my savings just to avoid using my card while I have 0% debt

Yes, you can rebuild your savings later with no interest

Does the interest on the savings beat the credit card interest?

In most cases, it doesn’t. So the advice is clear: pay off the debt

Nah, let’s blow that 5k in savings, max out the card, and just make minimum payments. Then tell your boyfriend you’re broke so he covers the vacation

esleystanley said:
Nah, let’s blow that 5k in savings, max out the card, and just make minimum payments. Then tell your boyfriend you’re broke so he covers the vacation

Finally, someone with a logical plan in this thread

@Thorne

Kerry said:
@Thorne

Your submission violated forum rules regarding relevant content related to credit and payment cards. Please keep posts within the topic.

If the credit card has higher interest than your savings, for sure yes. Almost always yes unless you have a 0% interest period or a high savings account with interest!

As long as your savings aren’t getting 22% - 29% interest, focus on paying off that credit card debt and avoid carrying a balance

You should definitely do it. Pay off that debt now

1000% yes to paying that off

100% yes, debt grows, but liquid money won’t grow as fast so clear it now