Lee,
By paying off both debts, she will not have to spend $750.00 per month. That savings would translate inher not having to touch the savings except for an emergency or spending money.
She has some medical bills that she accumulated over the last couple of years. I haven't asked too many questions as it isn't really my business. All indications were that she was doing just fine. What i found out was that the credit card was being used gas, groceries, and shopping. Not crazy spending but over a couple of years it has added up.
When we were visiting last weekend she had the eletric oven on to heat her apartment. WTH?!!!!!
That's when I decided I had better ask some questions. My Mom is a smart person but my Dad handled all of the finances for their 47 years of marriage until he passed away 5 years ago.
Thaks for your help, guys. I was on the phone last night when some of you were posting so I read the replies to her. As the eldest son,she trusts me so I think I can convince her to see the benefit of paying at least the CC debt off.
I also told her we would see about trading her car in for something a little newer.
Hers is a 2005 Hyundai Sonata with only 72,000 miles. One of the big problems is that the only dealer that was within 80 miles closed last summer. I have done most of the big maintenance jobs on it.