Sorry if there is a thread like this. I tried a few searches and came up empty.
Anyway, here's my situation I could really use some friendly semi-anon advice for: Over the years Hubby and I have really had some serious strings of bad luck that has resulted in our becoming massively in debt. After buying our lemon of a house and then several family illnesses and deaths we have completely run out of any more outs and options. Basically, we have about 400 dollars a month more in bills than income because we needed to put a couple of family emergencies on credit cards.
So here is my question. I have a credit card with a limit of $4000 that is =maxed out. Come Jan/Feb we will get our taxes done and we wind up with a check for about $4250. Now, normally we would use it to pay a couple of small bills and then set the rest aside in an envelope to pay our 3 yearly taxes (town in Jan /village in July/ and school in Spetember) which come to about 2500 total.
But I had this idea that we should use it to pay off completely my credit card, and then when the time comes, use the card to pay the taxes. That way not only will the credit be revolving (I think that's the right term) But for those months before the taxes are paid, that's all the more CC Debt we are not paying interest on.
Hubby thinks we should keep the money in an envelope and keep making regular (read: minimum)credit card payments.
I feel like my way is a faster way to get back on the right track.
If we do it his way and we have another emergency we are just spending our taxes money and then we have a maxed card AND no money for taxes. If we do it my way, the taxes are paid and we have that extra credit leeway if (God forbit) we have another death or Illness. And if we don't, we are that much closer to paying it off completely next year.
Do any financial wizzards have any input on this, or maybe a better solution all together?