@Anonymous wrote:
I know that the thread headline may sound disrespectful, and I apologize for any offense, but I think a blunt, tough message on that one is appropriate. I have been browsing these forums and I have been stunned to see people talking like this as if it is anything other than truly dire circumstances.
Running a balance on a credit card is digging yourself into a hole. The interest rates are ludicrous.
Anyone who has a balance on their credit card, regardless of how low, should be figuring out how to get rid of that balance this month -- ideally by paying it down, if not, by taking out a loan at a better rate, or remortgaging. Once paid off you should never, ever carry a balance again.
Do people just not know this?
I pay off my credit card balance in full every month. I use the cards because they are a convenient way to pay, and I like earning the rewards points and such, but I would do anything possible to avoid carrying a balance.
I pay off my balances in full each month. However, I disagree with your statement. Absolute statements are silly. There are exceptions to every rule.
Reasons to carry a balance?
1. 0% APR offer - Just make sure you pay it off before interest hits. Can be risky if you don't have self control and fail to pay off the balance before the intro period ends.
2. Emergences - I am lucky enough to have affluent parents and to earn well. However, not everyone can afford to cover major emergency expenses with cash. If you don't have the cash, sometimes you have limited options.
Don't get me wrong, I think most people carrying balances do so for poor reasons. Nevertheless, you made an incorrect statement since you phrased it in the absolute rather than as a general rule.
Discover IT $17k / US Bank Ace (VSig) $13.5K / US Bank Cash+ (VSig) $13.5k
