Having been in the mortgage business for almost 40 years, I’ve seen just about every possible financial scenario. One that I’ve seen quite often is the conflict between couples regarding the best way to get ahead, financially.
In one corner we have the champion saver, with 1,438 wins, 18 ties, and zero losses. In the other corner, with 1, 438 losses, 18 ties, and zero wins, (what a coincidence) is the Debt Challenger.
The Debt Challenger has fought valiantly over the years but seems to always fall short of victory but today is different. Today, the battle is over what is the best use of the $10,000 year-end bonus they received from work.
The Champion Saver says it’s a “no-brainer” the money goes into savings. However, the debt Challenger thinks the money is best used to reduce debt, especially those nasty credit cards charging 23% interest.
The Champion comes out swinging with “It’s best to prepare for a rainy day!”. The Challenger dodges the direct hit with, “If it’s a rainy day, we can use the credit card again.”.
The Champion immediately returns with a jab: “What about the children’s education?” Ouch, that was below the belt! The debt Challenger counters with: “They can get a student loan or scholarship!” and follows with “23% interest on the credit cards is draining our monthly budget! We need to get it under control…. For the children”. The Challenger may have scored some points with that one.
It’s looking like this one is coming down to the wire. It may be the referee that calls this one. With 1,438 wins, the Champion is feeling pretty confident, but the Challenger thinks he may finally have his first win.
What do you think? Is it better to put the $10,000 in savings and earn 4% (not in this market) or is it better to pay down the credit card that’s charging 23% interest? Let us all know in the comments below…
