Monday, February 22, 2010

$1,000 or $2,000 EF?

Most of us agree that $1000.00 Emergency fund seems low for true emergencies. I am tempted to save $2000.00 for our EF goal..just because I fear our washer and dryer may bite the dust this year. However, my husband can't stand the credit card. So I think we are simply going to make due with a $1000.00 goal until the $4,000 CC is gone.

With all the changes going on in the credit card world....I really fear ours changing. Our credit card is a MasterCard through our credit union. We have never had a fee and the interest rate is not huge, but not super low either. I think it is around 11 to 12%. So far we have received no letters stating they are raising the rates or charging us a carrying fee. But I fear the day they do! I am hoping since it is a credit union one that they won't do that. I also have a Kohls charge that I keep at 0 balance. I only use it cause you can get deals when you make purchase there. I have gotten 30% off deals. I never charge more than what I can immediately pay off with our cash clothes fund. But I will kick this card to the curb if they charge me a fee for having it. We also have a Kroger Card. It too has a 0 balance and we use it for gas now and then. But if I get a fee for having it...out she will go too!

Have any of you seen changes such as fees for your cards? What about store Kohls and Krogers?

Because of this fear...I am in agreement that we should try and get our CC gone and then build the EF up a little more. That way...if the fees come the cards can go!


  1. 11-12% is not a low interest rate. You should call up & ask them to reduce it or threaten to close it. We called ours up and got the one reduced from 29% to 6% and somehow we have a 3% int rate on Capital One. The rep was shocked as she said people just don't have rates like that anymore. I also called up Citi to reduce our 29% to 9.9%.

  2. Wow, I should call Capital One and ask for a lower rate. They did raise our interest from 12% to 13% which suprised me. The next month they raised our credit by $5000, which we never asked for. I had no idea that anyone had 3% interest rates anymore. I really just want to pay off our credit card, but a lower interest rate could potentially save a lot of money!