I am going to be getting an extra paycheck next month. Considering the fact that jobs aren't as secure as they used to be, would it be wiser to pay an extra month of rent, to be ahead in case something happens, or pay off a credit card?
Joe
Favorite Answer
If you get paid every second Friday, you will get 3 paychecks in April. However, it is still only one paycheck every 2 weeks. You will likely be very short of cash by May 14th when the next paycheck comes. I would suggest holding on to the money, because you may find you need it before May 14th.
If May 14th comes around and you are still not short money, consider paying off the credit card then.
Anonymous
If you hit a rough time 4-6 years ago and missed some credit card payments, it would not still be affecting your credit score... you can improve your scores greatly over the period of 12-18months... unless you're still in the habit of not paying what you need to. Landlords and rental agencies, as well as lenders and future employers... all check your credit score to see if you're financially responsible. Many people would say that you shouldn't have had an issue with not paying your cc bills on time even with unemployment because you should only use a credit card if you can pay it off the same month and because you should have several months of expenses saved up for emergencies -- neither of these are easy choices, but it keeps you out of that situation and is part of financial responsibility. If you don't have several months' of expenses saved up for an emergency... how will you keep paying your rent if you lose your job again? No one is looking at unpaid bills that occurred 4-6 years ago... they're looking at your current scores and whether you've had any recent unpaid bills, evictions, judgments, etc against you.
UpintheAir
Pay off your credit card and then take the money you were using to pay the monthly minimum on your card and put it into the bank. Keep saving as much as you can until you have a 6 month emergency fund.
In the future pay your credit card in full on time every month.
Then with no credit card balance and an emergency fund, paying rent should never be a worry.
One you have that emergency fund continue saving until you have enough for a down payment on a house.
Good luck: keep planning for your future.
Aplomb
Absolutely save it if you don't have an "emergency fund" of at least 6 months. If you don't have an emergency fund, this could be a great way to start, nthen add a little each paycheck. This is recommended by many financial planners. To start off easy, take a look at Suze Orman's site, or her books at the library. She's super easy to understand and has good plans to follow. You'll feel better knowing you've got some money saved up. Best luck.
JosefStalinsTroll
Pay off the card if this is just an extra check.