Square Wheels Posted July 30, 2014 Share #1 Posted July 30, 2014 So, I bought a fancy bike and took my wife to Hawaii last year and incurred a little credit card debt. I usually don't do this, but life is short. I only have one card that I owe on, and I only have $2,300 left. It will be paid off soon. It's been 0% for a long time and that expires in September. There is a minimum payment notice on their page. I'm OK with paying interest for money I borrowed, but 13 years to pay back 2 grand? That's a little outrageous. If you pay only the minimum payment each period, you will pay more in interest and it will take you longer to pay off your balance. For example: If you make no additional charges using this card and each month you pay... You will pay off the balance shown on this statement in about... And you will end up paying an estimated total of... Only the minimum payment 13 year(s) $4,270 $79 3 year(s) $2,833 (Savings =$1,437) Link to comment Share on other sites More sharing options...
Chopped Liver Posted July 30, 2014 Share #2 Posted July 30, 2014 I refuse to carry any debt if I can avoid it. BTW, my CC bill this month will be close to $15K. And probably about the same next month. Link to comment Share on other sites More sharing options...
Square Wheels Posted July 30, 2014 Author Share #3 Posted July 30, 2014 Yikes, I don't feel so bad now. This will be paid off by the end of the year, then all I'll have is my mortgage and my car payment (that's also 0%). Link to comment Share on other sites More sharing options...
Gump Posted July 30, 2014 Share #4 Posted July 30, 2014 We've been debt free for 5-6 years...I like it! 2 Link to comment Share on other sites More sharing options...
Parr8hed Posted July 30, 2014 Share #5 Posted July 30, 2014 How else do you think credit card people make money? We don't have CC cards. We have the house note and a few years left on the loan for the expedition. 1 Link to comment Share on other sites More sharing options...
Mr. Silly Posted July 30, 2014 Share #6 Posted July 30, 2014 So, I bought a fancy bike and took my wife to Hawaii last year and incurred a little credit card debt. I usually don't do this, but life is short. I only have one card that I owe on, and I only have $2,300 left. It will be paid off soon. It's been 0% for a long time and that expires in September. There is a minimum payment notice on their page. I'm OK with paying interest for money I borrowed, but 13 years to pay back 2 grand? That's a little outrageous. You're allowed to pay more than the minimum. Link to comment Share on other sites More sharing options...
JerrySTL ★ Posted July 30, 2014 Share #7 Posted July 30, 2014 If you go the minimum route, you'll also pay nearly twice as much in the long run. The minimum on my card is only $25. Thankfully we've been able to pay off any debt every month for about 15 years. Link to comment Share on other sites More sharing options...
Square Wheels Posted July 30, 2014 Author Share #8 Posted July 30, 2014 I'm paying about $100 a week now. I want this gone. Link to comment Share on other sites More sharing options...
Mr. Silly Posted July 30, 2014 Share #9 Posted July 30, 2014 What will the interest rate be after September? Link to comment Share on other sites More sharing options...
Square Wheels Posted July 30, 2014 Author Share #10 Posted July 30, 2014 What will the interest rate be after September? Not sure, but I might just pay it off. I have a small saving that makes close to 0. I think it will be 12% or so, and that isn't for all of the debt since it started, just what I still owe. Link to comment Share on other sites More sharing options...
Road Runner Posted July 30, 2014 Share #11 Posted July 30, 2014 I use two credit cards, but I pay them off each month. They are an excellent way to pay and track my purchases and they cost me nothing. Link to comment Share on other sites More sharing options...
Mr. Silly Posted July 30, 2014 Share #12 Posted July 30, 2014 Not sure, but I might just pay it off. I have a small saving that makes close to 0. I think it will be 12% or so, and that isn't for all of the debt since it started, just what I still owe. 12% annual will be about .5% per month or on $2000 about $10/month. Maintaining the debt will cost you a bottle of wine per month. Link to comment Share on other sites More sharing options...
TrentonMakes Posted July 30, 2014 Share #13 Posted July 30, 2014 I use two credit cards, but I pay them off each month. They are an excellent way to pay and track my purchases and they cost me nothing. yes. There were a few years when we carried some CC debt (and I don't like to think about it) but we never got in real deep. We get some rewards points too. Link to comment Share on other sites More sharing options...
Road Runner Posted July 30, 2014 Share #14 Posted July 30, 2014 We get some rewards points too. Ditto. I forgot about that. Taking that into account, they are actually cheaper than using cash or check or debit. 1 Link to comment Share on other sites More sharing options...
Chopped Liver Posted July 30, 2014 Share #15 Posted July 30, 2014 Ditto. I forgot about that. Taking that into account, they are actually cheaper than using cash or check or debit. correct. I run all my bills through mine, if I can. Link to comment Share on other sites More sharing options...
Dirtyhip Posted July 30, 2014 Share #16 Posted July 30, 2014 No debt here, except for 1 mortgage and that may be gone soon too. I have a CC, but pay it off monthly. Link to comment Share on other sites More sharing options...
The_Karen_Cooper_Incident Posted July 30, 2014 Share #17 Posted July 30, 2014 I have no debt. Finally got rid of it all last November. Freedom. <scratch that> After doing another amends list, I have one more financial amends to make but it is small and I'll take care of it soon. Couch 1 Link to comment Share on other sites More sharing options...
jsharr ★ Posted July 30, 2014 Share #18 Posted July 30, 2014 Not sure, but I might just pay it off. I have a small saving that makes close to 0. I think it will be 12% or so, and that isn't for all of the debt since it started, just what I still owe. Find another 0% offer and transfer the balance if you can. Free money is free money Link to comment Share on other sites More sharing options...
Square Wheels Posted July 30, 2014 Author Share #19 Posted July 30, 2014 Find another 0% offer and transfer the balance if you can. Free money is free money That doesn't work, they usually charge a balance transfer fee. I have the money in savings, I just wanted to hang on to it. Link to comment Share on other sites More sharing options...
Randomguy Posted July 30, 2014 Share #20 Posted July 30, 2014 You're allowed to pay more than the minimum. I don't believe this to be true. Link to comment Share on other sites More sharing options...
Chopped Liver Posted July 30, 2014 Share #21 Posted July 30, 2014 That doesn't work, they usually charge a balance transfer fee. I have the money in savings, I just wanted to hang on to it. my advice....take it or leave it. Pay off as much of the CC as you can, but keep $1,000 in savings. You never know when Uncle Murphy will visit you. Link to comment Share on other sites More sharing options...
Road Runner Posted July 30, 2014 Share #22 Posted July 30, 2014 my advice....take it or leave it. Pay off as much of the CC as you can, but keep $1,000 in savings. You never know when Uncle Murphy will visit you. My advice...take it or leave it. Put a whole lot more than $2000 in savings! Rule of thumb is six months income, but at least a year's worth is highly desirable. Link to comment Share on other sites More sharing options...
Chopped Liver Posted July 30, 2014 Share #23 Posted July 30, 2014 My advice...take it or leave it. Put a whole lot more than $2000 in savings! Rule of thumb is six months income, but at least a year's worth is highly desirable. defiinitely, after you pay off the CC. Link to comment Share on other sites More sharing options...
Mr. Silly Posted July 30, 2014 Share #24 Posted July 30, 2014 Having some emergency funds is desirable. If you drain your savings to pay off a credit card then you still have the credit card to fall back on if you need emergency funds. Link to comment Share on other sites More sharing options...
Road Runner Posted July 30, 2014 Share #25 Posted July 30, 2014 If I only had 2K in the bank, I couldn't sleep at night. Link to comment Share on other sites More sharing options...
Gump Posted July 30, 2014 Share #26 Posted July 30, 2014 My advice...take it or leave it. Put a whole lot more than $2000 in savings! Rule of thumb is six months income, but at least a year's worth is highly desirable. We crossed the twelve months of expenses put away a couple months ago. It wasn't easy to get there but it's a good place to be. Link to comment Share on other sites More sharing options...
Square Wheels Posted July 30, 2014 Author Share #27 Posted July 30, 2014 my advice....take it or leave it. Pay off as much of the CC as you can, but keep $1,000 in savings. You never know when Uncle Murphy will visit you. OK, good point, but really how much more can they take? I already got whacked twice this year for 50k. You can only squeeze so much blood from a stone. Link to comment Share on other sites More sharing options...
The_Karen_Cooper_Incident Posted July 30, 2014 Share #28 Posted July 30, 2014 OK, good point, but really how much more can they take? I already got whacked twice this year for 50k. You can only squeeze so much blood from a stone. Holy crap! Who wacked you for 50k? Sorry if it is personal. Couch Link to comment Share on other sites More sharing options...
Chopped Liver Posted July 30, 2014 Share #29 Posted July 30, 2014 OK, good point, but really how much more can they take? I already got whacked twice this year for 50k. You can only squeeze so much blood from a stone. I assume you are referring to the IRS. However, there are more Murphys out there than just Uncle Sam. Link to comment Share on other sites More sharing options...
Square Wheels Posted July 30, 2014 Author Share #30 Posted July 30, 2014 Holy crap! Who wacked you for 50k? Sorry if it is personal. Couch See below I assume you are referring to the IRS. However, there are more Murphys out there than just Uncle Sam. Yup, I like the idea of hanging on to what little savings I have left, thanks for the suggestion. Link to comment Share on other sites More sharing options...
Dirtyhip Posted July 30, 2014 Share #31 Posted July 30, 2014 nm Link to comment Share on other sites More sharing options...
Thaddeus Kosciuszko Posted July 30, 2014 Share #32 Posted July 30, 2014 OK, good point, but really how much more can they take? I already got whacked twice this year for 50k. You can only squeeze so much blood from a stone. If you're not already sending in everything you make, then you're not paying your 'fair share'! I hope you don't subscribe to the thought that because you earn your pay that you should be permitted to keep any of it. Haven't you seen those bumper stickers that say "TAX THE RICH"? Get with the program already! There are boatloads of people out there who are entitled to the money you earn because the government says so. Link to comment Share on other sites More sharing options...
The_Karen_Cooper_Incident Posted July 30, 2014 Share #33 Posted July 30, 2014 If you're not already sending in everything you make, then you're not paying your 'fair share'! I hope you don't subscribe to the thought that because you earn your pay that you should be permitted to keep any of it. Haven't you seen those bumper stickers that say "TAX THE RICH"? Get with the program already! There are boatloads of people out there who are entitled to the money you earn because the government says so. You heartless bastard! hehe. El Coucho Fang Link to comment Share on other sites More sharing options...
Thaddeus Kosciuszko Posted July 30, 2014 Share #34 Posted July 30, 2014 You heartless bastard! hehe. El Coucho Fang You... you.. take that back! I am not heartless! Link to comment Share on other sites More sharing options...
petitepedal ★ Posted July 30, 2014 Share #35 Posted July 30, 2014 Thank you for bringing this subject up before my vacation I do not have $2000 in savings and I do have credit card debt...better than before...but it is still there...and I have what I hope is at least 1/2 of the cash I need for vacation...but...single person,single income, who bought at the near peak of the real estate market... I can't win....but hey it is better than previous years...and at least I do have a small savings account. Link to comment Share on other sites More sharing options...
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