@Anonymous wrote:
Carrying a $500 bal on a 12% card. It is from a small vacation in Oct. Have been paying $100/month.
I could pay it off from savings BUT I've found that it's better for me to not touch the savings account because it is difficult to put the money back in there.
Well, the smartest thing to do is to pay it from savings, then "pay" your savings account $100 / month.
Personally, I keep enough cash in bank to handle any small emergency (car break down, etc.). I don't really draw lines between my checking/savings account either, I transfer balances between the 2 all the time. I honestly don't think it matters where I take the money I'm spending, it's my money either way, what does it matter if I pay out of checking or savings?
I can't think of anything that would force me to take a charge on a credit card that I can't afford to PIF the next month.
Can't afford the vacation? Don't take it. Can't afford to pay for the meal out? Don't go. Only major surprise I can think of that would REQUIRE me to pay out of pocket is if my car breaks down, and that would cost at MOST 5K to repair (and that's like a really bad case, most car repairs only cost a few hundred)
Major medical emergency? Health insurance covers most of it. Apartment burns down? I have insurance for my stuff (Plus I only have like 10 grand worth of stuff in my apartment anyway, my watch is the most valuable thing I have in it, and I'm usually wearing that, and my computer's the 2nd most valuable thing in it.. I don't even have a TV, lol)
I think most people who get emself in credit trouble start out with a bad habit of carrying a small balance, then it grows. I don't know anyone who's gotten into serious trouble because they absolutely HAD to spend the money.