what would you do?
We have some cash we saved up for a needed, but not totally critical home improvement. We also have a small amount of savings and add to it monthly. We have 2 credit cards that get paid off monthly (groceries, necessary bills), and 2 that do not get used and we are trying to pay off. 1 of those is on a self-imposed payment plan and it will be paid off the same month that 0% interest expires. What has changed in our planning is the realization that we NEED a new roof.
I'm considering taking most of the cash we have on hand (keeping a little buffer still though) and paying off the non 0% interest credit card (and continue not using it). That would free up money every month that we can use to pay off or mostly pay off the roof (company offers 12 months same as cash). The problem with that is losing most of our buffer, but then, isn't that what it's for? Another option is applying for an FHA home improvement loan. We have good credit, but the economy being what it is... If we could even get one we'd have to weigh the interest charge against whether we could really pay off the roof in 12 months or not. The roof really has to be done in the next couple of months, sooner is better.
I know there are varying opinions about how best to pay off debt and having emergency savings, I'd just like to get some opinions specific to our situation. If I need to add numbers to this I can.