@Chris679 wrote:
@red259 wrote:
@NRB525 wrote:You have to pay down that $2,600, catch up your PIF cycle by paying in full.
Once you pass this first statement due date not paying the first statement in full, then the interest clock begins on all open charges. It's not a multiple, it's still only the APR at a daily rate applied to the open balance, but it does start adding the interest until you catch it up.
What is your APR on this card?
I will have to check although the APR is not good that is for sure since its a rewards card. In another week or so I would have the first cycles payment. Sadly it seems by doing this I would be hit with a ton of interest because then I would lost the grace period on the second statement amount and now would have to come up with $2600 instead of the $1600. It looks like I will need to dig into my emergency fund as much as I hate doing so, especially since the money is coming in but is just not coming in fast enough.
Let's say the APR is 20% (I'm just making up an APR I forget what mine is). How much interest would that be if I carried $2600 for 30 days?
$43
Wow. What a racket these cards frickin are.
;My APR is 15.99 so I may carry the balance although I will pay a few hundred more before the statement cuts so I can get it down to about $30 to carry it for 30 days. I'm not going to be using the card for a few months anyway so I should have a couple of months of zero balance and I may be closing the card all together.
@red259 wrote:
@NRB525 wrote:You have to pay down that $2,600, catch up your PIF cycle by paying in full.
Once you pass this first statement due date not paying the first statement in full, then the interest clock begins on all open charges. It's not a multiple, it's still only the APR at a daily rate applied to the open balance, but it does start adding the interest until you catch it up.
What is your APR on this card?
I will have to check although the APR is not good that is for sure since its a rewards card. In another week or so I would have the first cycles payment. Sadly it seems by doing this I would be hit with a ton of interest because then I would lost the grace period on the second statement amount and now would have to come up with $2600 instead of the $1600. It looks like I will need to dig into my emergency fund as much as I hate doing so, especially since the money is coming in but is just not coming in fast enough.
Let's say the APR is 20% (I'm just making up an APR I forget what mine is). How much interest would that be if I carried $2600 for 30 days?
Simple round numbers, figure 2% per month, so 2%. It will be less than that, I don't think the CSP interest is 20%, more like 16%. So with daily compounding you can figure 1.5% for 30 days. $40 of interest. Not a lot, if you can get back on that no-interest cycle again it's no worry.
@Chris679 wrote:
@red259 wrote:
@Chris679 wrote:
@red259 wrote:
@NRB525 wrote:You have to pay down that $2,600, catch up your PIF cycle by paying in full.
Once you pass this first statement due date not paying the first statement in full, then the interest clock begins on all open charges. It's not a multiple, it's still only the APR at a daily rate applied to the open balance, but it does start adding the interest until you catch it up.
What is your APR on this card?
I will have to check although the APR is not good that is for sure since its a rewards card. In another week or so I would have the first cycles payment. Sadly it seems by doing this I would be hit with a ton of interest because then I would lost the grace period on the second statement amount and now would have to come up with $2600 instead of the $1600. It looks like I will need to dig into my emergency fund as much as I hate doing so, especially since the money is coming in but is just not coming in fast enough.
Let's say the APR is 20% (I'm just making up an APR I forget what mine is). How much interest would that be if I carried $2600 for 30 days?
$43
Wow. What a racket these cards frickin are.
Not if you play the game right. Then that racket pays you 2-5% in rewards for all purchases.
Yes I am fully aware of the rewards which is the only reason I use credit cards to start with.
One of the "rewards" of using credit cards is the grace period. Depending on spending pattern and APR, the grace period can be worth more than the 1% cashback on a typical reward card. Yet a lot of people don't even consider what they are doing when they throw away the grace period by carrying a small balance past the due date.
+
850 FICO8 since 2015, Thanks MyFICO - 5+ years since last HP
@Anonymous wrote:
I don't understand the refusal to use the "emergency funds" to cover this debt. Isn't this what the fund is for? This IS an emergency, a minor one, but an emergency of sorts. Is that money untouchable until someone goes to the hospital? Plus, you say the money is coming anyway, so more reason to use the emergency funds now and IMMEDIATELY replenish them once the incoming money arrives.
For sure, that emergency money reserve is never going to make you more money in a month that what you would have to pay the credit card... and whatever implications it may have for your current APR offers. It's a no brainer to me.
Not all emergencies must be serious or involve blood. You have one now. Or am I missing something???
If it costs you money to keep up an emergency fund by way of paying unnecessary interest....Of what use was the emergency fund.
