Better to pay off credit card or keep saving and maintain CC debt?

[maksik288]

@rchl3321 So you're talking about leaving a little bit of money on the cc, the most recent payments that are still in the interest free period?

it's fine I guess but across the year what are we talking about, havign 5% return on like an extra $1000 in savings? $50? I'd prefer the feeling of having my cc at zero.

 

[valshantal]

@maksik288

the most recent payments that are still in the interest free period?

I think you’ll find that if you don’t clear the statement balance by the due date(which OP isn’t doing), there is no longer any interest free period on the card

This link explains it: https://www.bendigobank.com.au/personal/credit-cards/my-card/understanding-interest-free-period/

 

[jlove55]

@rchl3321 Depends on your own risk tolerance and discipline. Having been there and personally having terrible cc discipline; if I was in your shoes I would smash the cc and close it if you can. Keep putting a nominal amount in savings if you can but the sooner you’ve got that cc down the better.

Look at a balance transfer to a 0% card if you are disciplined to help smashing it out.

 

[haquynh1990]

@rchl3321 Just get rid of it, I was faced with the same choice last year, keeping growing my savings or pay off my credit card. The feeling of being totally debt free is a pretty good!

 

[mlay901]

@rchl3321 It costs you money to have a credit card. The bank charges you interest on what you owe.

It doesn’t cost money to save money up, you receive money from the bank.

Pay down your credit card to zero as quickly as possible then save as h as you can.

 

[drmoses]

@rchl3321 OP, for absolute clarity, are you carrying a balance on your credit card which is incurring interest payable? Your post suggests you're not but there appears to be a bit of confusion from the replies.

If you're paying the balance owing from the previous period and not incurring any interest to be paid then what you're doing is fine. If you're carrying a balance and paying interest then you're going to best placed to pay that amount off in full and direct surplus to savings.

 

[andy99]

@rchl3321 Every financial literature I have ever read has said to maintain cc debt /s

 

[eques]

@rchl3321 Save $1000 for emergencies. Pay the credit card off. It's costing you money. Both in interest and in fees.

 

[wildcatjim2014]

@rchl3321 Keep saving OP, credit card debt is the cheapest debt you can have! Right…?

 

[rchl3321]

@wildcatjim2014 Ok thank you will do

 

[resjudicata]

@rchl3321 This has got to be a troll. All it's missing is mention of a 2003 Toyota Camry.

 

[rchl3321]

@resjudicata I drive a ford Mondrian

 

[resjudicata]

@rchl3321 Well there's your problem. Trade that bad boy in for a Camry.

 

[rchl3321]

@resjudicata not a troll ive never even been under a bridge . Blocked and reported (defaming)

 

[maximum7]

@rchl3321 I'm a Nigerian prince, I will pay off your credit card debt as an act of goodwill if you help me by holding a sum of $2300000 in your account while my country deals with civil unrest.
You will need to pay some legal release fees for the transfer to proceed but you will be reimbursed for 10% of the held value (230k) for your service.

 

[rchl3321]

@maximum7 I’m already helping three can’t you ask one of your brothers

 

[josh328]

@rchl3321 The bank must love you, paying all that interest to them. You are the golden goose of Credit Card customers.
They hate CC users like me. I have never paid a cent of interest in 28 years of having a credit card.
If you can’t afford to pay the balance off in full by the due date every month, you can’t actually afford a credit card.
If you have not paid off the balance in full, every purchase you make on the card from that point onwards is accruing interest. You have no interest free period until you have cleared the whole balance de owing at the end of the month.
I do not think enough people understand this.

 

[genesis1984]

@rchl3321 I'm a self made millionaire and I don't have a CC maybe I'm doing something wrong