I'm entering medschool this fall and was wondering if it is better to pay off a credit card (~$10K...a lot, i know :() or if I should just save up? I'd love to start w/ the least amount of debt (i think i can get it down to $4K if I just put all my earnings into my debt). having a few grand laying around for school would be nice but which is the "better good"....less debt or $? any advice?

Credit scoring is based upon the amount/limit

If you have a 20k limit, and 10K on the card, then you are OK. Always keep your cards just under 50% of their limit.

Now, for interest, credit interest is ridiculous - so the more you keep on, the more interest you pay. Better to have money from student loans than from credit card loans.



I'm entering medschool this fall and was wondering if it is better to pay off a credit card (~$10K...a lot, i know :() or if I should just save up? I'd love to start w/ the least amount of debt (i think i can get it down to $4K if I just put all my earnings into my debt). having a few grand laying around for school would be nice but which is the "better good"....less debt or $? any advice?

Run (don't walk) to the nearest bank and pay that credit card off. That crap is drawing a minimum of 15%. If you put that cash is a savings account you will max out at about 5%. Pay the damn loans off. NOW!

Although the previous user used strong language, I agree that you should pay off the credit cards and save yourself the interest. There are private loans that are lower interest than those cards that you can use if you need some extra money.

Keep a thousand bucks around in a money market for emergencies (key word there: EMERGENCIES, not "I want pizza")

Pay off as much CC debt, or debt in general, as you can before school. Not only are they sucking you dry, but all that revolving debt (and debt in general) adds pressure to your daily life in the form of financial stress.

CC companies are for-profit ventures, and they are definitely interested in their best interests, not yours.

I personally don't use credit cards at all. A visa debit card works like on for buying online, renting a hotel/car, and all that jazz. and it's covered under visa's Zero Liability policy, so their debit card has all the protection that their credit cards do when used as "credit" at the checkout line.