A = interest rate you pay on your credit card
B = interest rate you make on savings/investments
If A > B, then pay it off ASAP.
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Credit card question
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B = interest rate you make on savings/investments
If A > B, then pay it off ASAP.
I think part of it intentional, and part of it is that most people just suck at math, but with the widespread availability of personal computers and smartphones, I think some of the math deficiencies could be addressed.
The intentional aspect of it is that living on credit has become a huge part of American life and the economy relies on it. Personal finance education is education about financial vehicles and credit/risk as much as it is about adjusting your lifestyle so that you stay within your means, and a lot of people will refuse that notion. If people were taught personal finance (and adhered to it), a lot of financial/credit institutions would go out of business, and so would a lot of manufacturers and service providers that rely on people using credit to acquire their products and services. So again, it's kind of in their best interest to ensure people remain oblivious to the topic of personal finance.
My philosify is that if I put it on a credit card, then I must pay it 100% when the bill comes or I couldn't afford it. Pay the card off ASAP. Ed
gathermewool
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Im sorry for your loss, bud. I like LastPass (or anything similar), because it allows for all of my passwords to be very complicated, and I only need to memorize on complicated password, the master password.
Before marrying I did something similar to you, storing master passwords for important sites on my laptop, while using the same, easy-to-remembe, passwords for everything else, like all of the car forums, BITOG, etc.
Pay off the credit cards and put the money you use to make payments into your savings account. You’re paying money for a feeling of security
I had to declare bankruptcy in 2000. Wife had some issues. She's ex-wife now. That credit card debt can snowball and cause lots of problems. It's nice to see a large number in your savings account but if you owe half that in cc debt, it's not really as large as it looks. Come up with a pay the debt off plan. Thinking of going out to dinner? Take that $100 and put it towards your debt. Thinking of going out for cocktails? Take that $60 and spend $10 at the liquor store and put $50 towards your debt. This way you can pay off your debt and keep some cash in the bank. I came into some a couple years ago and paid off my mortgage. Yeah, it's boring. Yeah, it would be more fun to look at a larger balance in my savings account. But the mortgage is paid off and my wealth is increasing. Little boring things can build wealth one day at a time.
The whole point of credit is the ability to borrow money and pay it back in a timely fashion and to have a good history of it. That's what gets you a high credit score. Low credit risks gives you the best rates on buying a car or home. I've made LOTS of money buying houses and have a great credit score as I suppose I have several mortgages and several credit cards and haven't been late.
Credit is a tool, it can help you or hurt you if you don't know how to use it correctly.
Not to change the subject....
I knew a couple that was in a bad marriage and before they filed for divorce, both of them ran up all their credit cards on silly things. The woman got breast implants, the husband bought guns....
Keeping good credit is important and is a tool just like what Wolf mentioned.
I knew a couple that was in a bad marriage and before they filed for divorce, both of them ran up all their credit cards on silly things. The woman got breast implants, the husband bought guns....
Keeping good credit is important and is a tool just like what Wolf mentioned.
If you can’t roll the balance into a zero % card for 12 months or whatever promo deal they have and then pay it off in that timeframe, pay the balance off now.
I sure wouldn't be shredding cards. Your FICO is based on percentage of credit used. Having a good FICO is worth $$$ throughout your life.
no doubt the credit card interest is going to be the biggest challenge. If it's going to make you sleep more sound and won't miss the money in the bank pay off the card debt. Otherwise these are tough times maybe it's best keep the money in the bank and have liquid assets. Keep making payments... besides they can't hang you at noon.. Many folk have debt
+1. Do not cancel any credit cards. Keep credit utilization under 15%.
I had credit cards since the 70's I don't understand this I've never carried over a balance. I have been totally debt free since 1992.
You and I are the kind of people credit card companies hate. Especially now when they rake in interest and pay nothing in savings
Yes I currently have the lowest Credit Score I've had in 15 years? 803.
I’ve been at 850 for the past seven months. Sure wish I had a perfect FICO when I could have used it. My accumulating days are over, now it’s survival.
Also interesting. Credit card banks are limiting their exposure to older accounts with high credit limits. I’ve had a Capital One card for years that came with a crazy high 27k limit. Last week via letter my credit limit was cut by 17k down to 10k. The reason given was lack of use, the real reason was the aforementioned bad credit exposure.
You should work to pay down the credit cards AQAP.
The rates on those and the way that finance charges are calculated on those create an astronomical outlay of money to service debt.
Start with your highest rate card, and throw down as much money as possible on that, while still servicing the others. When that card is paid off, go to the next highest and repeat. Continue this until they are paid off.
The only time that I have ever carry any CC debt is on a 0%SAC deal or when I financed my Masters degree on a CC. I was fortunate that I had a low interest CC and the way that my program was laid out , I was able to pay off a class in about 3 months. Cost me $100. in finance charges during the cost of my degree.
Debt is one of those things that can be used advantageously if one has the self discipline to do so. We just bought a new car. I could have paid cash for the whole purchase, however, I decided to take some cash at hand (which covered 56% of the cost) and take advantage of 0.9 financing (which was already cooked into the price of the car) for the balance. The large downstroke gave me a relatively small car payment which I can work into my budget, and allows me to leave that money in investments for a much greater return.
I keep a HELOC on the house for unplanned emergencies .Unfortunately, this year I have had to use it due to some health problems I have had. Even with good insurance, I am still about $7.5K in the hole (and counting.) I've been nervous about running it up, but sometimes you can't control everything. I debated taking investment money to pay it down, but my return on that money in my portfolio is greater than the 2.49% I am paying on the HELOC. However, I handle it responsibly, and make triple the minimum payment every month.
Even with accessing over 20K in credit the last three months, I have over a 830 FICO. I use CC's for convenience and rewards, but I pay them in full every month. My rule is that I never buy anything with a CC that I wouldn't buy with cash. It's worked for me for over 30 years.
The rates on those and the way that finance charges are calculated on those create an astronomical outlay of money to service debt.
Start with your highest rate card, and throw down as much money as possible on that, while still servicing the others. When that card is paid off, go to the next highest and repeat. Continue this until they are paid off.
The only time that I have ever carry any CC debt is on a 0%SAC deal or when I financed my Masters degree on a CC. I was fortunate that I had a low interest CC and the way that my program was laid out , I was able to pay off a class in about 3 months. Cost me $100. in finance charges during the cost of my degree.
Debt is one of those things that can be used advantageously if one has the self discipline to do so. We just bought a new car. I could have paid cash for the whole purchase, however, I decided to take some cash at hand (which covered 56% of the cost) and take advantage of 0.9 financing (which was already cooked into the price of the car) for the balance. The large downstroke gave me a relatively small car payment which I can work into my budget, and allows me to leave that money in investments for a much greater return.
I keep a HELOC on the house for unplanned emergencies .Unfortunately, this year I have had to use it due to some health problems I have had. Even with good insurance, I am still about $7.5K in the hole (and counting.) I've been nervous about running it up, but sometimes you can't control everything. I debated taking investment money to pay it down, but my return on that money in my portfolio is greater than the 2.49% I am paying on the HELOC. However, I handle it responsibly, and make triple the minimum payment every month.
Even with accessing over 20K in credit the last three months, I have over a 830 FICO. I use CC's for convenience and rewards, but I pay them in full every month. My rule is that I never buy anything with a CC that I wouldn't buy with cash. It's worked for me for over 30 years.
Got one of those too. They only cut mine by 10K.
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