If you could get rid of your credit card debt that you aren't really making progress on  (but not student loan debt, its here to stay) by cashing out on your life insurance policy, would you?  This is the policy that your grandfather has been paying on since you were 3 ($23/mo) and passed on to you when you were 21 (a year ago) and now has a cash-out value of about $5000.  This, in conjunction with your tax return would allow you to pay off your student loans faster  and allow you to save your sanity by moving out of your father's house, again.

Keep in mind that this may anger your grandfather.

I would not because I wouldnt want to betray my grandfather that way.

At the VERY least I would discuss it with him and see what his feelings on it were. And I would abide by his wishes, whatever they may be.

Not a chance. He has prided himself on that for 19 years and will will only take you 2 to ruin it.

You dug yourself into debt, you dig yourself out.

How about you sell a few rifles of yours? Kind of hits home thinking about it huh?

Dont have a rifle worth enough to buy a tank of gas...  I used the cards (about $3k worth, plus a motorcycle which I am trying to sell) because I was in a tight spot.  Now ALL of this debt is coming in, and I don't know what to do.  


You think I want to do that?  Hell, I have thought of getting another loan to pay off some of this shit, at a lower interest rate.  I would still be going crazy here at dad's though.  My job just isn't cutting it, and its more than I have made in a while.  ($25k/yr)

write down everything you spend for 2 weeks, to the penny. I'm sure you will find a lot of ways you can cut your spending habits.

2nd job time.

Student loan debt, job that sucks, and want to move out from your parents house?


www.goarmy.com will take care of all three.

College loan repayment? Check, up to $65,00 for active and $20,000 for reserve.
Better job and more money? Check
Move out? Check

If you have a degree you will go in as an E-4, not a bad deal.

2nd job and eat PB&J sammichs and smack roman for as long as you can.

Quoted: write down everything you spend for 2 weeks, to the penny. I'm sure you will find a lot of ways you can cut your spending habits.

Been there done that.  I write checks for my bills from my roughly $1450 monthly paycheck, so that I only have about $100 or so left over for small emergencies, or heaven forbid, a $20 dinner date with a girl I am seeing.  A $10 box of .22lr a few days ago was the first ammo I have bought since the Tulsa gun show in October, and before that it was probably Nov. '04.


Swift: $150
CC #1: $300
CC #2: $300  
Yamaha: $200  
Mohela*: $132
Perkins*:                     $100
Cingular:                     $67
car Ins:                     $94

Subtotal:   $1343


This month I had to keep some back to get my taxes done.  and start a new insurance policy that saves me about $500 a year.

Like I said, my sanity is reaching an impass living here, and rent in this town is insane, being a college town. $385 is about as cheap as it gets without enough roaches to carpet a place.



2nd job isn't an option, I know of very few places that hire part-time help in the mornings or after 11pm.  I work 2nd shift right now...

Quoted: Quoted: write down everything you spend for 2 weeks, to the penny. I'm sure you will find a lot of ways you can cut your spending habits. Been there done that.  I write checks for my bills from my roughly $1450 monthly paycheck, so that I only have about $100 or so left over for small emergencies, or heaven forbid, a $20 dinner date with a girl I am seeing. Swift: $150 CC #1: $300 CC #2: $300   Yamaha: $200   Mohela*: $132 Perkins*:                     $100 Cingular:                     $67 car Ins:                     $94 Subtotal:   $1343 This month I had to keep some back to get my taxes done.  and start a new insurance policy that saves me about $500 a year. Like I said, my sanity is reaching an impass living here, and rent in this town is insane, being a college town. $385 is about as cheap as it gets without enough roaches to carpet a place.

Thats your CC minimum payment? Or just what your paying? Ballpark total your having to pay off with paying that much?

Quoted: Quoted: write down everything you spend for 2 weeks, to the penny. I'm sure you will find a lot of ways you can cut your spending habits. Been there done that.  I write checks for my bills from my roughly $1450 monthly paycheck, so that I only have about $100 or so left over for small emergencies, or heaven forbid, a $20 dinner date with a girl I am seeing.  A $10 box of .22lr a few days ago was the first ammo I have bought since the Tulsa gun show in October, and before that it was probably Nov. '04. Swift: $150 CC #1: $300 CC #2: $300   Yamaha: $200   Mohela*: $132 Perkins*:                     $100 Cingular:                     $67 car Ins:                     $94 Subtotal:   $1343 This month I had to keep some back to get my taxes done.  and start a new insurance policy that saves me about $500 a year. Like I said, my sanity is reaching an impass living here, and rent in this town is insane, being a college town. $385 is about as cheap as it gets without enough roaches to carpet a place. 2nd job isn't an option, I know of very few places that hire part-time help in the mornings or after 11pm.  I work 2nd shift right now...

Drop the cell phone. Another option might be to consolidate your CC debt into one and maybe lower the payment.
You can always find another job. It may suck complete donkey balls but there out there. Alot of fast food places are open 24 hours. Work a graveyard there. Maybe open up for a diner like Dennys. Gas stations will hire for odd hours.

That's what I pay.  Minimums are like $50.  Two CC"s add up to about 3k right now, plus about 3500 for the bike.


Doesn't sound like a lot, but those numbers really dont seem to have moved much in the past few months, and I am at my wits end.  I also owe my mom about $2000, and she is getting impatient.

Goddamnit, I am even considering truck driving again, except that I would have to choose between JB Hunt and Swift again, with the possiblity of Trans Am (a decent company, or so I hear) on the outside.  But that's only if I lose this job, which doesn't look very likely (I like them, they like me).

Quoted: That's what I pay.  Minimums are like $50.  Two CC"s add up to about 3k right now, plus about 3500 for the bike. Doesn't sound like a lot, but those numbers really dont seem to have moved much in the past few months, and I am at my wits end.  I also owe my mom about $2000, and she is getting impatient. Goddamnit, I am even considering truck driving again, except that I would have to choose between JB Hunt and Swift again, with the possiblity of Trans Am (a decent company, or so I hear) on the outside.  But that's only if I lose this job, which doesn't look very likely (I like them, they like me).

Well, atleast you have some leway in case you need money with the CC payments. Ask your boss for some OT cause your in a bind. If they like you, it might get you some extra hours.

Also, you could start with say the minimum on one CC or a little more, and jack your CC payment up on the other and get one out of the way fast. So instead of $300 and $300  do like $500 and $100 or something.

4 months or so, that one CC is paid off.

Quoted: That's what I pay.  Minimums are like $50.  Two CC"s add up to about 3k right now, plus about 3500 for the bike. Doesn't sound like a lot, but those numbers really dont seem to have moved much in the past few months, and I am at my wits end.  I also owe my mom about $2000, and she is getting impatient. Goddamnit, I am even considering truck driving again, except that I would have to choose between JB Hunt and Swift again, with the possiblity of Trans Am (a decent company, or so I hear) on the outside.  But that's only if I lose this job, which doesn't look very likely (I like them, they like me).

Then your obviously trying to pay the CC's off to fast. Your paying 500 bucks a month extra. I dont fault you for trying to pay it down, but obviously your paying more then you can afford to pay. Pay 100 bucks on 1 card, 100 on another and 100 to mom. Your spend 300 instead of 600, and free up 300 bucks a month while still making more then the minimum payment.

I have been broke before and I had to do it with a family. I remember being so happy to pay an extra $25 on a credit card, and then we get the next bill and they slap on a finance charge and some other shit for $40 bucks.

Just do with what ya can and pay as much extra as possible. Maybe see what you have lying around that you don't need and sell on ebay? People buy the stupidest shit on there. It will get better trust me.

would cash it out. Its not like you are going to be around to spend your life insurance money.

No.

Cash out.

1.  If you are worried it will anger your grandfather, talk to him about it.  Once he understands that you're cashing it out to pay off debt (and that you intend to go on the straight and narrow after that) -- not wasting the cash on hookers and blow -- I think he may be very understanding.  Don't go and cash it out without talking to him and making him understand that you're being fiscally responsible.

2.  No kids, no wife -- you don't need life insurance now.  Even when you DO need it (i.e. you get a ball and chain), you should be getting a term policy and investing the difference (vs if you bought a whole life policy).  Whole life is nothing more than enforced savings -- in a very poor vehicle for those savings.  

3.  Even when you do cash out and pay down your debt, live frugally.  Think of it like football.  Not everyone can have the offense of the 2001 Rams (offense = earnings) but everyone can have the defense of the 2000 Ravens (defense = ability to cut expenses).  Save and invest.  Read "The Richest Man in Babylon" and "The Millionaire Next Door" for more.

I choose:

I have a different suggestion that doesn't involve swimming in debt or cashing out.

Get this book:

"The Total Money Makeover: A Proven Plan for Financial Fitness" by Dave Ramsey

Here's the link:  product.half.ebay.com/The-Total-Money-Makeover_W0QQprZ2683528QQtgZinfo

Read the book, apply the principles.  It will change your life.

I've seen it work in several people's lives.  Do it now.

You're welcome.

Quoted: Student loan debt, job that sucks, and want to move out from your parents house? www.goarmy.com will take care of all three. College loan repayment? Check, up to $65,00 for active and $20,000 for reserve.

I did it(Navy) and my first payment came in last week.

In 2 more years all I will owe is the income tax on the payments.

It doesn't look like the insurance policy is worth much.

Your grandfather has paid in $5,244 and it is only worth $5,000. Not much of a return according to my math.

What is the death benefit on the policy? Who is the beneficiary?


ETA: Since you say he passed it on to you, that sounds like a gift to me. If that is the case, it is yours to do with as you please.

I would not cash in the policy. By either bad choices and or circumstances you got your self into debt, you can get your self out. I made less money when I was first married and then our first kid came.

You are paying 300 on each card. What you need to do is focus on 1 card then the other. Also you owe your Mom 2k.

CC#1: $50 Min Pay $200 /m
CC#2: $50 Min Pay this minumum
Mom Pay 200/m

This leaves you with $150
Put $50 in savings and DON"T TOUCH IT. If you don't get in the habit NOW you will fuck your self over the rest of your life. I know if sucks now and it seems like no end is in sight but it is and you will get out.

You HAVE to pay familly back ASAP and they are the FIRST priority. They will be with you for life and you can not disrepect them the way you are now. CC companies deserve NO respect you MOM does.

Case in point. My father has ruined EVERY familly relationship he has because of borrowing and never paying back the money. His example is extreme and it took him 30 years to destroy every relationship.

Also your grandfather got you the policy to work for your future. It would be one thing to use the money for a down payment on a house, but when it comes to the credit cards you basically screwed up. Hey I did too, lots of people do and the companies are preditory. But MAN up to the situation. If it means eating Ramen and PB&J and living at home suck it up. In a year you will be much better off.

If you can get a loan at a lower rate to consolidate then do it BUT remember this. Unless you cut up the cards you will only end up charging them up again AND be paying off the consolidation loan.

You need to get that Dave Ramsey book. (You can ignore the religious crap in it). Also look at Fool.com on their free guides. They give the same basic advice as Ramsey.

Basically TRACK literally EVERY PENNY. You will be surprised how much money you piss away. Then CUT expenses. You HAVE to liv below your means. If that means with living with mom and dad  suck it up, pay off the junk then move on.

Finally YOU NEED AN EMERGENCY FUND. This is money that you do NOT spend. This is not to make up a late CC payment or a date money. This single thing will keep you out of trouble. You need eventually to have 6 months living expenses. I'm still working on that myself. I have a couple months though.

Case in point, We have 1 car. It just broke down and needs a 2k repair. I have credit cards, BUT,  I am able to pay this out of my emergency fund. I will pay the fund back like i would a CC but the interest goes to me not some greedy corp. This reserve has saved my bacon many times. If only knowing it was there. Because the money was so hard to save up you don't want to use it unless it is dire. This alone made me find other ways to pay things instead of CC or savings. After putting aside money into this for 6 months or so you will forget about it and it will be habit, AND you will enjoy making it grow, you will NOT want to spend it. BUT that first 6 months when you first start it is a bitch. You will constantly want to spend it but if you don't and make it to 6 months your feelings on it will change.

Bottom Line: Pay off MOM first. Direct your fire/cash at 1 target KILL that target first (Any war gaming, D&D similar shows this point). Kill one debt then focus the rest onto remaining debts. It is a snow ball effect. Also you are cutting things TOO close with your current budjet. If you don't have an emergency fund you will always be a day late and dollar short. Read that Ramsey book and Fool.com. Save that Insurance Policy for something that will get you an asset NOT paying off a mistake. You will likely not learn and get into the same mess later. Save the Insurence for a downpayment on a house or something. Pay off mom. Then one card then the other. Get rid of the bike, it is a depreciating liability. Change your spending habits. The next year might suck but life is MUCH better when you are free. And a year is really NOT that long.

Do what everyone else in the US does.... claim bankruptcy.

Quoted: 2nd job time.

+1. Work your ass off to pay off your debt. Hell, it's only $5k. Watiting tables at night will get that paid in less than 6 months.

ETA: Then cut up your credit cards and live below your means.

Quoted: Do what everyone else in the US does.... claim bankruptcy.

No kidding.


However, as an aside, student loans are not dischargeable. Also, it is my understanding that with the changes in the bankruptcy laws, credit card debt is not dischargeable either. At least not to the point it used to be.



P.S. I know you're kidding Pathfinder.

Quoted: Keep in mind that this may anger your grandfather.

Nope.

Stay at home, mind your paw, get a job and pay your bills the old fashioned way.

If you cahs out your grandfather's insurance money then be sure and do what he intended for you to do with it.

My $.02

Cash out the life insurance.

The value is only 5k, and despite any hurt feelings, 5k WILL NOT BURY YOU. You grandfather got the policy for you at a time that 5k would serve to bury you, but it doesn't begin to even make a dent in an average funeral. In 1991 an average funeral was around 3k, in 1999 an "average" funeral would have been around 6k, in 2006 an "average" funeral would be around 8k. Sure, cremation is much less expensive, but that is a choice you would need to make and to have it layed out in your will.

The 5k you get from your life insurance policy, less any taxes you may need to pay, if used to pay off high interest debt would be a far better use of the funds than using the money to buy a car, or a bunch of toys (electronics, guns, vacation, etc.).

Dude, if you are having problems with debts, talk to the debtors.  Most will be very reasonable in helping you out.  First, they want your future business.  Second, they would rather help you now than fight you later to get their money.  Just call them up and ask.

BTW, if you are paying 600 on a 3k balance, figure it will take 6-7 months to pay off.  And that is assuming you have a crappy rate.  If you can get one of them balance transfer deals with a new card, you could get it interest free for a year and pay it off in 5 months.  Or talk to the bank about getting a lower rate.  Just remember not to charge anything again....ever....until your shit is paid up.

Quoted: Cash out the life insurance. The value is only 5k, and despite any hurt feelings, 5k WILL NOT BURY YOU. You grandfather got the policy for you at a time that 5k would serve to bury you, but it doesn't begin to even make a dent in an average funeral. In 1991 an average funeral was around 3k, in 1999 an "average" funeral would have been around 6k, in 2006 an "average" funeral would be around 8k. Sure, cremation is much less expensive, but that is a choice you would need to make and to have it layed out in your will. The 5k you get from your life insurance policy, less any taxes you may need to pay, if used to pay off high interest debt would be a far better use of the funds than using the money to buy a car, or a bunch of toys (electronics, guns, vacation, etc.).

He never said what the death benefit was, only the cash value. Those are two seperate things. The death benefit may be much more than that, who knows. He has yet to answer that question.

I do tend to agree with you, cash it out. However, if the death benefit is more than I am thinking, then it might be wise to hold onto it, maybe.

Quoted: It doesn't look like the insurance policy is worth much. Your grandfather has paid in $5,244 and it is only worth $5,000. Not much of a return according to my math. What is the death benefit on the policy? Who is the beneficiary? ETA: Since you say he passed it on to you, that sounds like a gift to me. If that is the case, it is yours to do with as you please.

That's the way I see it. Cash out. Pay off your debts and buy another policy. At your age you can get a decent rate on another plan. You would come out way ahead.

I wouldn't cash out the life insurance policy unless the purchases on the credit cards were for medical purposes, food, your education.  $600 a month for credit card debt is mind boggling to me - you must have some awesome toys somewhere.  The fact is cashing out the policy is the easy way out and to grow from this you must do your time and make sacrifices.  I would recommend going to your bank taking out a low interest low combining your credit card debt so that with your $600 a month payment you can pay this off in a year.  Think about it.  If your Insurance policy is for $5K and you're making $7200 dollars worth of payments a year you're screwing your Grandfather so you can keep the $7200.

Be strong, read Dave Ramsey's book and work yourself out of this hole.  Do yourself a favor and learn from this experience.

Patty

I've worked my ass off, and passed up buying lots of things I didn't need, to the point where I can pay off 100% of my "debt" at any given time with the cash I have in my pocket.  

Do whatever it takes to get to that point and you will feel a serious liberation.  99% of people don't have the discipline.  They always have a reason why they have to buy this or that.

The question is, if you use life insurance money now to pay off debt, will you keep it paid off or end up right back where you are because you had to have a new whatever?  I suspect you'll be wasting your time.  You'll pay off a card then decide you need a new XBox or rifle or something.  Might as well keep the insurance if that's the case.

Quoted: Credit counseling company.  They will get your interest rates to 0% and put it into a single payment.  It will not hurt your credit.

Be verrrry careful there. There are some of these companies as we speak in big time trouble over not paying off people's debts even though they were supposed to.

Before doing this, check out the company thoroughly.

Quoted: Do whatever it takes to get to that point and you will feel a serious liberation.

Cannot agree more.  As someone who has been through debt and now is out of it, the feeling is indescribable.  I don't make much money, I don't get to go shooting as much as I'd would like, but I also don't have the dread of "where am I going to come up with  the money" feelings.    I

also do not own a credit card and I also avoid everything that would stick me with a contract like cell phones.  You can get prepaid phones if you must have a cell phone and those are nice because if money is tight, you just don't put any minutes on it until the cash flow is there.

Check with your bank on a consolidation loan. Several banks would probably be willing to toss you a loan to consolidate and "cut up" those credit cards - and you will probably be paying less interest too.

Quoted: If you could get rid of your credit card debt that you aren't really making progress on  (but not student loan debt, its here to stay) by cashing out on your life insurance policy, would you?  This is the policy that your grandfather has been paying on since you were 3 ($23/mo) and passed on to you when you were 21 (a year ago) and now has a cash-out value of about $5000.  This, in conjunction with your tax return would allow you to pay off your student loans faster  and allow you to save your sanity by moving out of your father's house, again. Keep in mind that this may anger your grandfather.

The life insurance policy is a result of an insurance salesman duping your grandfather. He would have been able to make more money if he just put it in a savings account. Pretty pathetic. Cash out and save it where it will earn more interest. Because your student loan is low-interest, pay that off through the payment plan. Try to cut down your credit card debt as that is high-interest. Save the $5K for a down-payment on a house/real estate in the future.

CASH THE F out- get out of the "investment" F-ing BS insurance...and take the $ and pay your bills off.  Then get a cheap 20 year term policy.

Why do you even need life insurance? Are you married? Do you have kids?

As I said before, get a second job waiting tables and use that money to pay off your debt.

Cash out of the life insurance policy, but re-invesnt the money in a Roth IRA.

What am I missing?  Is credit card debt more necessary than underpants these days????  

I retract my vote.  My bet is as an impartial observer making a generalization, is that regardless of where the money comes from, fiscal irresponsibility is a repetitive and modern reality.

Keep in mind that cashing the insurance/retirement plan will carry a heavy tax burden, probably higher than 30%.  [

There was a time when I was driving a Collector's Edition Corvette with $700+ car payment/month (after purchasing three new vehicles three years in a row, none with any cash down - '94 Corvette, '95 Eddie Baeur Bronco, '96 Corvette)!

The only way I could afford this was to take a on a second job delivering newspapers!!  In my new Corvette!!  4:15 AM every morning, seven days/week, regardless of weather, holidays, etc.  But it was enough to pay my bills (along with my job as engineer at Fortune 500 company).

You must pay down your debt as quickly as possible and if it doesn't hurt you, you are not doing it fast enough.  Concentrate on the highest interest rate loan first by paying as much as you can while making minimum payments on everything else.  Then move to the next highest interest rate, and so on.

Protect your credit and pay off Mom.  If that means cashing out the policy - check with Gramps first then abide by his wisdom.

Debt is an albatross around your neck that will only get worse over time if you do not take seemingly drastic measures now.  It is like being overweight - it gets harder to lose the longer it lingers.

Quoted: Not a chance. He has prided himself on that for 19 years and will will only take you 2 to ruin it. You dug yourself into debt, you dig yourself out. How about you sell a few rifles of yours? Kind of hits home thinking about it huh?

Yup. Even though whole life policies are a waste of money ( the your GP din't know at the time ),your GP thought enough of you to do this for you. Don't waste his love for you on something you screwed up.

The life insurance policy pays out about $23,000 in the event of my death.  I need to find out if my life insurance policy through work covers me only during work-related mishaps.  I upped the coverage to $50k for about $5/mo more...

The minimum payments on credit cards and the bike are a combined $150 or so.  I pay as much as I do to try to bring them down.  I just had a car wreck that I had to pay for my damages on one card (I had it down to $1100, put $1300 on it after sending them a check for $600, so 1900...).  One card is at 12.5%, the other at 9%.  I am trying to sell the bike right now, but for less than I owe (it is a 250 and depreciates fast ).  I have been living here at dad's for about 4 years now, so you can see why I keep saying stuff about my sanity....while trying to keep good credit.  I have a score of around 725, and  would like to keep it there.



I am just trying to consider all of my options.  Thank you all for your suggestions.

Quoted: That's the way I see it. Cash out. Pay off your debts and buy another policy. At your age you can get a decent rate on another plan. You would come out way ahead.

+1

My grandfather bought Certificates of Deposit for me ever since I was born.

I cashed them in when I was 21 to pay off credit card debt.

I rationalized it with pure logic.

The CDs were earning 4%.

I was paying 20% on my credit cards.

Math is math.

I paid off the cards, then bumped my 401k contributions to the max, and never looked back.

Don't try to pay off both cards at the same time.

Pick the one with the least debt ,and pay the minimum on the other,
while concentrating on paying off that one card.

Soon ,you will have 1 less payment a month by taking out
that card ,and then you can concentrate on the other.
This can take the pressure off quicker.

Trying to pay off more than one card at the same time is like
splitting your forces to fight an enemy larger than you.

Consolidating at a lower rate with only one payment a month works to.

I consolidated .
I was paying 3 payments for a total of over $400 a month ,with no end
in sight.
Now I'm paying $200 a month for a minimum,and I can see the debt go down
quickly ,much quicker while paying literally half the same amount in payments.
When i have any $$$$ over the bills,I throw it into that debt .

You other guys here, sometimes credit cards can be your only way out.

Car accidents,medical bills,housefires,floods, shit happens.

Even if you have insurance for everything,you'd be surprised what
legal loopholes insurance companies will use to not pay you.

Even if you've had the same company for 20 + years ,and never had a claim.
That's ALL insurance companies.

It's not always people with a fiscal responsibility problem .

1) You had a car wreck and a motorcycle payment which implies that you have both a car and a motorcycle.  Get rid of the excess, i.e., the motorcycle.  You can pay of the $3k you owe on that.

2) Won't cashing out the life insurance = income = income taxes next year?  You really won't be getting $5k.  You'll be getting $5k now, but you'll really end up with something in the neighborhood of $3500 or so.  If you don't have the money in the bank to cover that expense, you'll be in a hole again in a year.

3) Cut up the credit cards.  You've shown that you can't handle them.  At least not at this point in your life.  I'm not trying to be rude or put you down.  I'm just suggesting what you need to do.

4) On top of that, you want to take on more expenses by moving into your own apartment.  I see disaster looming in the distance for you.

5) Drop the cell phone yesterday.  Do you really need a $67 debt now?  I don't have a cell phone, and I continue living.  It's possible.

6) Make a budget, and learn to live under it.  Once you've built up some savings, you can afford the toys like a motorcyle or things like that.

7) If you really want to cash out the life insurance, see if you can roll it into an IRA.  That will keep the entire $5k in your hands, and defer any income tax until your retirement.  Trust me.  At the rate you're going, you really need to start working towards that sooner rather than later.

Good luck.

Quoted: The life insurance policy pays out about $23,000 in the event of my death.  I need to find out if my life insurance policy through work covers me only during work-related mishaps.  I upped the coverage to $50k for about $5/mo more... The minimum payments on credit cards and the bike are a combined $150 or so.  I pay as much as I do to try to bring them down.  I just had a car wreck that I had to pay for my damages on one card (I had it down to $1100, put $1300 on it after sending them a check for $600, so 1900...).  One card is at 12.5%, the other at 9%.  I am trying to sell the bike right now, but for less than I owe (it is a 250 and depreciates fast ).  I have been living here at dad's for about 4 years now, so you can see why I keep saying stuff about my sanity....while trying to keep good credit.  I have a score of around 725, and  would like to keep it there. I am just trying to consider all of my options.  Thank you all for your suggestions.

My general rule: Don't use your savings to pay your debt. Use your income to pay your debt.