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Revelate
Posts: 9,640
Registered: ‎12-30-2011
Re: What would you consider "debt"?
[ Edited ]

squirrely2005 wrote:

Obviously. And I don't mean that in a rude smart ass way. Thanks for the input. I know I should avoid all interest I can.

Is there anybody that is actually ok with paying a little interest every now and then?


I am, but my situation might be a little more unique than others.  Until recently, I haven't had a steady job for a while, and as a result I've either been making a good chunk of cash, or having nothing coming in.

 

As a result, when I'm out of work, I tend to float my balances on my cards and simply make slightly more than the minimum payments and accepting the financing (call it 2% monthly though that's high even with my subprime credit cards) until I have income coming in.  It's worth it to me to be able to push my rent marker out an extra few months if things go hugely worse than I expect.... giving me time to go find another gig, or at least something to pay the bills.  Once I have income though, I hammer my balances ASAP to the exclusion of pretty much any other concerns besides other bills and food.  Well, that and building some additional cash reserve: I'm going to probably wind up with $2700 on my BOFA card at the end of this next statement, on which I've already transferred $2K to my BOFA account which I'm going to kick to the card, and after paying rent I should still have $2400ish in the bank, or two additional months rent.  Sad to say, but I pretty much measure my slush fund in how many rent checks it covers :smileyhappy:

 

Anyway, I don't see the point of paying interest for no reason; however, sometimes sacrificing a few hundred in a given year is a more financially defensible position than not, though admittedly it's suboptimal compared to being able to regularly pay things off. 

 

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