[masraum]

Originally Posted by id10t

So 'splain this to me...

I work for the state, and the new jobs I am looking at are also state employment. I have a fixed rate mortgage. I do have some credit card debt, but not a ton. Have some money invested, but not a lot. Don't have a lot of liquid savings, but if I cashed out my investments I could pay off all of my CC debt.

What exactly would The Crash do to my financial status? I know that credit card interest rate would go up, as would costs for things like food and gas. But where else would I be affected?

Thanks!

Well, I'm not any better off than you, actually, probably worse. I'm in the process of bailing myself out of ugly debt.

To me, the priorities should be,
1 Savings (enough for 3-6 months of bills)
2 no debt
3 investments

So far I'm working on 1 and 2 simultaneously. I've paid off a couple of things and have part of 2 credit cards left (one at 3% and one at 8%). I'm working on paying off the next credit card, but mostly focused on trying to get 3 months of bills in the bank. (75% of the monthly $$ suplus goes to saving and 25% goes to the next credit card). Once I get to 3 months of savings, I'm going to go to 50/50, and then once I get to 6 months of savings, I'm going to go to 100% credit card.

Once the last credit card is paid off, assuming no financial calamities strike, I'll go to accelerated payment of mortgage and savings/investing.