I have been aggressively attacking my credit card debt.  I am down to a $4,000.00 balance, 0% interest for a year.  My minimum payment is $46.00.  I

always try to pay at least $250.00 a month.   I am also trying to save up for a down payment on a car.  I own a 1994 Toyota Tercel.  Luckily, I

have had no major problems with it.  It has 145,000 miles on it.  I have saved up $2,000.00 thus far.   When the time comes to purchase a new car,

I will be purchasing something used not new.  I am also trying to build up an emergency

fund should any unexpected expenses arise for my car.  Every month I put $100.00 towards my down payment and $100.00 towards my EF.

My question is where do I apply the government rebate when it arrives?  Should I put it towards my cc balance, down payment on a car or the

EF?  Any ideas would be appreciated.  Thanks. 

Since your credit card is 0% interest for a year, it looks like you'll have that paid off in plenty of time. It would be wise to build toward buying another car, but what's your goal for the emergency fund? If you're quite a ways from it, I'd put the rebate there "just in case," but if you're close, then I'd put it toward another car. You can always switch funds between savings if you really need to. 

If you have not reached your emergency fund goal, I would suggest putting it there. Reserve funds can help you to remain debt free in the long run.  

 

Since you have 0% interest on the credit card (good deal!) I'd also suggest putting the $600 in your emergency fund/new car fund. Perhaps consider a CD because you're not likely to need it soon and that will pay better interest than most savings accounts. A CD is FDIC insured, and the only thing that happens on most of them if you withdraw the money early from the CD is that you don't get any interest on it.

If it makes you feel more comfortable you can "ladder" the CDs by putting some in a 30-day, a 60-day and a 90-day and then rotate them as they mature. Or go longer and make it 1 year, 2 years, etc. for a higher interest rate if your horizon for using the money is that far out.

Dear All, Following is an unbelievable scam -- from what you'd think would be a reputable company, Safeway.

This week's San Francisco circular says that you'll get a 10% premium if you cash your stimulus check at Safeway, BUT, you must use up the entire gift card's worth THAT DAY OR THE NEXT DAY!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Yours in Him, Deb

deb,

that's why I like cash....it's good anywhere for anything at anytime!

 

OP,

Yes, emergency fund indeed!

BTW with my $1200: I bought milk filters, cheese cultures, and nursery garden plants with part of my rebate so far. ($100)wooohoo what a party lol. We are hanging onto ours for a little while. Dh will be getting 2 new tractor front tires with part of it. ($240) I'd like to pay down debt with the balance but my emergency fund needs it more.