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Discussion Starter #1
Right now, I have about $3500 more or less in credit card debts. I can roll out $400 a month to pay down the bills and I figure get them all paid off in 10-12 months (with the interest) and limit myself to $50 or so for some extra food and a box of ammo every month, or I could make the min card payments and have $250 or more to put into preps every month, but hold on at the same debt...

I am really torn about which direction to go...

I see the prices of ammo go up regularly, and I sometimes think if I buy a lot more ammo every month, I will be money ahead (because of dollar cost averaging) than if I wait until I have no CC debt, and I see the price of guns go up every month, and by the time I get down to zero balances, a now $80 Mosin could be up to $250-$300 or more...

I also feel sometimes that I am in a footrace with SHTF, and I may run out of time before I get paid off and can start putting strong money into preps...

Any advice?
 

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Right now, I have about $3500 more or less in credit card debts. I can roll out $400 a month to pay down the bills and I figure get them all paid off in 10-12 months (with the interest) and limit myself to $50 or so for some extra food and a box of ammo every month, or I could make the min card payments and have $250 or more to put into preps every month, but hold on at the same debt...

I am really torn about which direction to go...

I see the prices of ammo go up regularly, and I sometimes think if I buy a lot more ammo every month, I will be money ahead (because of dollar cost averaging) than if I wait until I have no CC debt, and I see the price of guns go up every month, and by the time I get down to zero balances, a now $80 Mosin could be up to $250-$300 or more...

I also feel sometimes that I am in a footrace with SHTF, and I may run out of time before I get paid off and can start putting strong money into preps...

Any advice?
I believe it's better to pay down debts. There's a saying that goes: "The borrower is slave to the lender." Depending on how much debt a person is in could determine the amount of preps that person cannot buy. High interest debt is a blood sucker. The credit companies are leeches

Get rid of the debt then you are free to buy the preps you need using cash.
 

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Pay the debt until SHTF... then WSHTF use credit to buy supplies in a hurry as most people will default on their credit obligations post SHTF. Credit scores will mean nothing if 50% of the population enters default. You will have the goods if your quick.
 

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Looking ahead
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I can think of no better way to give yourself more money than to pay off your debt. Look at it like this, your CC interest rate is probably between 8-29% The more you put on the card and the longer you keep making only the minimum payments your adding more debt which will make you pay more towards interest rather than the principal. You won't be saving more dollars (current or future) by buying ammo on sale now and paying for it on credit later. The sale amount is quickly negated.

This is true even if you try to fool yourself into buying the ammo outright with cash. That cash would have been used toward paying down your debt so its pretty much the same as using the CC to buy it. Your robbing Peter to pay Paul.

I too understand the anxiety of prepping. You can never seem to do it fast enough. Be smart about it though and don't let your SHTF be a financial one.
 

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Paying down debt IS putting money into preparations. The other posters have nailed it. It is far more likely you will create your own, personal, SHTF situation by adding to your debt than it is for any other catastrophy that you can imagine. Getting out of debt is the most practical and purest form of preparedness.
 

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Pay the debt until SHTF... then WSHTF use credit to buy supplies in a hurry as most people will default on their credit obligations post SHTF. Credit scores will mean nothing if 50% of the population enters default. You will have the goods if your quick.
Once out of debt...stay out. We don't know what will happen post SHTF. Things may or may not get back to "normal." The credit companies will want their blood sooner or later. Get out of debt and the money you save should be used for preps. The borrower is slave to the lender pre-SHTF, during, and after. Of course, if something big happens and you have no cash and your family's needs warrant it, do what you gotta do.
 

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Ok, in my oppinion, credit card debt, is unsecured debt.
They can not repossess your rice and beans.
Pay the debt down, and possibly have credit too possibly buy something, that might be shipped in a week or two, if they do not revolk your credit, if you are below an 800 score.
Spend your extra on the grocries now, and pay the minimum on the cards.
Don't get me wrong, you earned the debt, and you should pay your debts, but a 50 lb. sack of rice, has gone from $14.50 per bag, too $28.90 per sack in the last 18 months.
28% 0f $14.50, is much less then 28% of $28.90.
Your cards are fixed at a max, of 28%, but inflation can become as much as 300 %.
You decide, which is better, food in hand, or maybe a promise, it will be delivered in a few weeks at 300%?
 

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The end is near.
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75% toward paying down yer debt and 25% toward more gear.
Well, that is my vote as well. Put a little each month into preps until you have enough to survive. Not survive in style, but to simply survive. Buy the things you actually need for survival with that 25% of your extra cash while you pay down your debt with the remaining 75%. But once you've got food, water, and defense covered in a minimal way, put 100% toward that debt and get rid of it once and for all. And like ActionJackson said, don't fall back into debt.

Once you get that debt out of the way go ahead and prep for comfort as well as survival. You'll be amazed at how quickly 25% will get you prepped for basic survival and emergency preparedness. And you're going to be even more amazed at how 100%, which is what you'll have to work with after the debt is gone, will get you prepped in style.

Good question and good luck.
 

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"Dolt"
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Pay it off. I had four that were maxed out, over this past year all are paid of but one and it has $500 left. By this time next month it will be paid off. It is empowering as all heck to have them gone. The only payment I have left is a home, and it feels good to look at everything and say "they are mine". No more car payment, no more mini-van payment, no more credit card ....

Its starting to get good.
 

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Destroyer of Ignorance
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I'm with RevPaul on this one. The only debt I'd be concerned about paying off would be secured debt (a debt that has collateral ... ie car, house, etc.). Bankruptcy could end up being the least of your problems in a SHTF scenario. As of today, bankruptcy doesn't land you in jail.

Eating is far more important than maintaining your FICO score. If the economy collapses, how many places do you think will be accepting credit cards, LOL. Pay your minimum payments as long as you require the credit line.

Also, some ammo has risen in price faster than gold. Money spent today on things you will NEED is better than having the credit to buy them when they're no longer available.
 

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Since the SHTF could include the loss of a job we are working on the CC first as well. Still buying more food but we are trying to pay off the CC within the next couple of years. Cars done next year that frees up almost half a rent payment per month.
Ammo will do you no good if you lose your job and the bank man/landlord is knocking at your door. Okay, it might but that really is a short term solution. Granted you'd get a college edujmecation free depending on your state and room and board for a very long time again depending on the state:eek: .

I lost a job once I got lucky as we had a money in the bank at the time it went Bye bye quick but I found a dirty disgusting pay the bills job and stayed in it for six years. Hated most of the time spent there.

Someone can't remember who told me

1. Gun first
2. 3 months supply of Food water ammo Most CC/banks won't do much for 90 days
3. No debt and 3 months of money to pay bills secured either in a bank or in some way
4. Increase till your at a years supply of number 2 or more

Your point of view may be different I personally like the idea

I include
5. Get land
6. Plant garden
7. Get off the grid

I would also move move the getting the land to 4 because the garden makes the rest easier. I left it that way because I was told the first 4 points.:eek:
 

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Debt free is the way to go. ive got a similar thread to this.

my point of being dent free is ecaping companis that try and claim back pay when the fan settles down.

debt free means you can cut and run if needed. and also be in a good position when theings return to normal
 

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not a nut
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If you have ammo for protection and a couple months worth of food I would cut out all extra expenses and cut back my spending as much possible and put everything I could spare into paying off the debt.

You have $400 dollars that could be free and clear each month if you weren't in debt, how much interest are you paying to someone else?

I don't know how tight your budget is, I know when I was getting really serous about getting out of debt putting myself on a temporary financial diet helped quite a bit.

I started making my lunches, planning out and cooking meals ahead of time instead of hitting the store for something quick on the way home from work because I was tired.

Comparison shopping the sales online before I made my list and headed to the store.

Buying a little extra food here and there when I found a good sale and just saying no to somethings when the prices were getting jacked up.

I here folks at work saying how broke they are but still stop for a mocha before work or drinking 3 sodas a day, stopping for a beer or two after work. Its not easy to cut out the extras but it can really make a difference when you add it all up. I'm now to the point were I can loosen the leash a little I'm down to just the mortgage payment.

I don't know if you've shopped at The Grocery Outlet, (I think Lynnwood has one) I save a bundle every time I shop there. The only thing I find cheaper elsewhere (and better looking) is meat.
 

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Discussion Starter #19
If you have ammo for protection and a couple months worth of food I would cut out all extra expenses and cut back my spending as much possible and put everything I could spare into paying off the debt.

You have $400 dollars that could be free and clear each month if you weren't in debt, how much interest are you paying to someone else?

I don't know how tight your budget is, I know when I was getting really serous about getting out of debt putting myself on a temporary financial diet helped quite a bit.

I started making my lunches, planning out and cooking meals ahead of time instead of hitting the store for something quick on the way home from work because I was tired.

Comparison shopping the sales online before I made my list and headed to the store.

Buying a little extra food here and there when I found a good sale and just saying no to somethings when the prices were getting jacked up.

I here folks at work saying how broke they are but still stop for a mocha before work or drinking 3 sodas a day, stopping for a beer or two after work. Its not easy to cut out the extras but it can really make a difference when you add it all up. I'm now to the point were I can loosen the leash a little I'm down to just the mortgage payment.

I don't know if you've shopped at The Grocery Outlet, (I think Lynnwood has one) I save a bundle every time I shop there. The only thing I find cheaper elsewhere (and better looking) is meat.
I have about 500 rds of 9mm, 2000 rds of .22lr and a rifle and pistol to shoot each, and enough canned goods in the closet right now for 2 to eat 30-45 days.

Most of my budget line items are fixed; so much for rent, so much for child support, so much food (I love Grocery Outlet BTW!), orthodontist, car payment, utilities, car insurance, etc. I have cut most of the crap out; brown bagging instead of going out to lunch, stopped buying lottery tickets (a poor man's tax IMO), I drink the free coffee at work. The only real variable amount is how much I put onto my cards vs. other stuff like preps. (I could save another chunk of money if I got rid of cable tv and internet, but a man has to have some vices.:) )

I appreciate all the good feedback from everyone, and I am going to go for it and see how quickly I can eliminate the credit card debt, and limit my preps to an extra couple cans of Veg-All and Spam when I go food shopping.
 

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Gey out from under the burden.

If you still feel necessary to "prep ", cut back in other areas to find the funds.
You can't buy the feeling debt free gives you, let alone the security it provides.
 
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