Comments on: Credit Card Balance: Make Payments or Pay in Full?

By: ff

ff — Thu, 01 Jan 1970 00:00:00 +0000

@mdmurr Realistically it would depend on interest rates and whether or not you’re using the card after you made your payments. Usually the interest is charged on the amount outstanding after each payment if I’m not mistaken, Even though it’s an open end loan, there’s also other variables to consider.

By: ff

ff — Thu, 01 Jan 1970 00:00:00 +0000

No matter what, the best way is to pay credit card every month in full, period. Then the credit card companies will be the loser since you will have an outstanding credit report and rake up the rewards for using the card. I do this everytime because I don’t like to carry change. Takes a lot of discipline, but you get used to it if you are conscious of what you’re spending it on.

By: nvannello

nvannello — Thu, 01 Jan 1970 00:00:00 +0000

My beef with using credit is that most of us weren’t taught early on how credit cards work. The concepts of balances, minimum payments, posting dates, etc sound like foreign terms that can make people put their fingers in their ears and sing, “LA LA LA! I CAN’T HEAR YOU!”

I believed this fairytale lie: I have $500 available on a credit card. I can go out and spend $500. It’s OK. I’ll pay it back over time.
When I maxed out that card, I got another. And another. Then I had to get another job just to pay the minimum balances on my cards. When a new credit card came in, I would think, “I will just put this one on the side in case of an emergency,” but within a few weeks, that card was being used and before long, I maxed it out, too.

Before I changed my career and habits, I was $42,000 in credit card debt. Seem unimaginable? It was so staggering that I couldn’t sleep at night. I lied about money to my partner and my friends. At my lowest point, I contemplated killing myself just to make the debt go away.
That’s behind me now. I paid all of that off in full. I changed my life. Changed my career. Educated myself and I will never go back there again. When I want something now, I pause. “Do I want it or do I need it?” If it’s just a “want”, it stays on the rack/shelf and I go back to other things I already own and enjoy. I use my credit responsibly now and owe no one.

Debt is slavery. If you owe someone (including a bank), you are enslaved.

By: nvannello

nvannello — Thu, 01 Jan 1970 00:00:00 +0000

@BabBabson You need to remember: They are lending you money. Repeat: They are lending you money. By making it easy to set your payments to only pay the minimum, you’re doing yourself a disservice. Look at your balance daily. Make sure there is nothing out of whack. Get uncomfortable with the fact that you owe someone money instead of banking that cash for your future needs.

Chase was the only debtor who worked with me when I was significantly in debt and they were the first creditor to grant me credit after my financial burdens cleared. They’re doing you a favor by making you log in.

By: Kris

Kris — Thu, 01 Jan 1970 00:00:00 +0000

In a perfect world everyone would pay their balances in full each month. But many people don’t for one reason or another. And of course that makes the banks very happy! So if you can’t pay the balances in full, pay as much extra as you can to keep the balance from growing out of control.

By: Sustainable Life Blog

Sustainable Life Blog — Thu, 01 Jan 1970 00:00:00 +0000

pay in full

By: Adaptu

Adaptu — Thu, 01 Jan 1970 00:00:00 +0000

Minus a medical emergency in Greece, I’ve always paid my credit card off in full at the end of each month. Going into debt is scary to me and not something I want to get into the habit of.

By: Philip Taylor

Philip Taylor — Thu, 01 Jan 1970 00:00:00 +0000

@mdmurr I would say “a”. You don’t know the interest rate, which is key.

By: mdmurr

mdmurr — Thu, 01 Jan 1970 00:00:00 +0000

I am a college student in a Personal Finance class with an extremely rigid instructor. My question is: If you double the payments on a credit card, does it ALWAYS pay off in less than half the time? It was a question on a quiz, that was worded as follows:
15.
If you double the monthly payments for a credit card, the loan will be paid off in:
a) Not enough information to answer
b) Half the time
c) The additional payment will have no impact
d) More than half the time
e) Less than half the time

Thank you in advance for any help with this question.

Sincerely,
Marya
mdmurr@mail.com

By: Philip Taylor

Philip Taylor — Thu, 01 Jan 1970 00:00:00 +0000

It’s my understanding that most credit card companies have terms that dictate that they ZOOM all those fees. I’d get on the phone quick with them and find out. Most likely you’ll need to pay it off asap.