27F, how bad is it to have about $2200 in credit card debt & a little over $2500 in savings?

[Anonymous]

In FL, I was unemployed for a little over 5 months so had to take care of bills on my own (didn’t qualify for unemployment b/c I quit). Right before I got my first paycheck almost 2 months ago, I had about 3k in credit card debt. Going away slowly but ugh

Bad

Not bad

[zeitgeist057]

Bad, aka not good. When I was 27, I had no credit card debt and about $20,000 in savings. I don't say that to brag, I feel I was behind in terms of where I should have been in earnings, savings, and financial stability.

At 27 you should be very close to enough money to put down as a deposit on a home, regardless of if you have plans to purchase your own home or not.

If you are paying interest on your credit card debt, it makes no sense to keep that balance if you can pay it off with your savings. I'm guessing your savings account yields less than 1% interest if any interest at all, and your credit card probably charges over 15% interest and likely over 20%, compounded monthly. Time to buckle down, seek overtime, get rid of that debt, it's like an actively bleeding wound, but instead of blood, you are hemorrhaging money.

[MTC29]

The average American family has around $6,000 in revolving debt (credit cards), so you aren't in bad shape. Now that you have a regular income again, the $2500 in savings isn't going to generate any real income, while the $2200 in revolving debt is probably running 22% interest... month after month. Pay it off as soon as you can.

[exitseven]

It is not too bad. Lots of people are in way over their heads in debt because of covid. The banks are reporting record consumer debt and people are slow in paying it off.

[Shamalien]

Pay the fking debt!!!

[In_Trance]

Don't get your logic.
Pay off the debt