Re: What would you consider "debt"?[ Edited ]
08-25-2012 01:30 AM - edited 08-25-2012 01:37 AM
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 .
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.
Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
Current Score: EQ 670, Wally TU 700, EX 718 (11/29/13, EX 07/11/13)
Goal Score: 680 in all three (01/01/14)
Take the FICO Fitness Challenge