Why I always PIF

[Anonymous]

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@Anonymous wrote:

People make too much of the whole "I must PIF like clockwork or I will self-destruct! I cannot pay a penny in interest!"

It's a credit card. Sometimes it is convenient to not pay in full and simply settle the remaining tab when you can. Reading this forum it's always the extreme, you're either PIF'ing or declaring bankruptcy and defaulting. As long as you aren't stretching your credit very thin, pay a little more than the minimum and settle in full when you are able, you will build an excellent credit score. Personally, I enjoy treating myself to a large purchase now and again that I'd rather not use liquid savings for and paying it off whenever I decide to, whether that be the next bonus quarter or the next paycheck or in four months. To me, that's the convenience and luxury we have as cardmembers.

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I would argue here, and I think many others would as well, if you aren't "able" to pay off a purchase the moment you make it that's a good reason not to make the purchase.  As stated much earlier in this thead back on Page 1, no one ever knows what life may throw at them.  People can go from healthy income to zero in the blink of an eye for reasons they never saw coming.  When you say pay something off "when you are able" you are implying that you aren't able currently.  If you aren't able currently and you lose your job tomorrow, chances are you won't be able to pay it off any time soon either... which could mean instead of paying minimal (calculated) interest you wind up paying excessive interest over time.

[longtimelurker]

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@Anonymous wrote:

 I would argue here, and I think many others would as well, if you aren't "able" to pay off a purchase the moment you make it that's a good reason not to make the purchase.  As stated much earlier in this thead back on Page 1, no one ever knows what life may throw at them.  People can go from healthy income to zero in the blink of an eye for reasons they never saw coming.  When you say pay something off "when you are able" you are implying that you aren't able currently.  If you aren't able currently and you lose your job tomorrow, chances are you won't be able to pay it off any time soon either... which could mean instead of paying minimal (calculated) interest you wind up paying excessive interest over time.

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While I mainly agree, remember that "able to pay" can mean different things:

1) Simply do not have the assets to pay.    I would agree that this can lead to danger in some cases

2) Inconvenient to pay now.     I might have other needs for the money (such as my emergency fund or some investment opportunity) or that mighe be not totally liquid, such as being in shares which I don't want to sell now as I think the price will go up soon.    In such cases, some people might decide paying a little interest is a good choice.   In this case, if things go badly wrong, I can probably pay off my card without getting into terrible cc debt

[Anonymous]

I agree with what you're saying above, but I suppose the verbiage is what needs to be clarified.

You stated "inconvenient to pay now" which IMO falls under the ABLE to pay.  ABLE, but simply not going to for whatever reason, some of which were illustrated in your post above.

"Unable" to me means "can't" - that is, one doesn't have the ability to pay.  If one doesn't have the ability (using savings, investments, basically whatever assets) to pay, one should consider if making the purchase is in their best interest.