Why are people afraid of interest??

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

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@Anonymous wrote:

A few points to drill home: 

1. Paying any interest to keep a credit card company happy is silly. 

2. Focusing on rewards cards when you consistently have a balance is silly since their APR tends to be higher. 

3. Having credit card debt over extended periods of time is really silly. 

4. Floating a credit card balance here or there for a month or two is not the end of the world. However, not the end of the world and optimal are not the same. I have occasionally floated a balance on a CC, but given my monthly positive cash flow, optimally I should never float a balance. 

5. I find myself agreeing with pretty much everything elPatitoFeo has said so far. 

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Well, duh!

p.s. I was going to give you kudos anyway by the end of your point # 4, I swear...

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I think the question is what is covered by "so far"   All EPF's comments in the thread?  Everything said on MyFico?  Every word EPF has uttered?

But 1-4 agreed without any question!

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Oddly enough, you don't get any kudos.  I know it sounds inconsistent, maybe I should check my rating system.  I'll get back to you...

[Anonymous]

I don't think anyone is "afraid" of it. There's just no point in paying it if you don't have to. It's money out of your pocket.

[Anonymous]

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@Anonymous wrote:

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Oddly enough, you don't get any kudos.  I know it sounds inconsistent, maybe I should check my rating system.  I'll get back to you...

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OK, then I'll  just have to login with some of my 4 other accounts and give the post kudos, as usual.

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

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Oddly enough, you don't get any kudos.  I know it sounds inconsistent, maybe I should check my rating system.  I'll get back to you...

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OK, then I'll  just have to login with some of my 4 other accounts and give the post kudos, as usual.

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Totally shocked that a respectable MSer would think of something sneaky like that!  Think of the children!!!

[Josh2942]

800%?

[Anonymous]

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@Josh2942 wrote:
800%?

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he was speaking in relationship to the % cashback people try to save when compared to interest they'd pay if they carried a balance

obvious exageration heh

[Josh2942]

1k is obviously nothing. I have come far from small limits. My business charge cards can charge up to 20k alone with the hard limit I have on them. The point I was trying to make but didn't explain was I have like 30inqs on each with 8 on EQ. Getting constant credit with chase is always exciting. I do have alot of internal credit with them tho. Checking/savings/3 creditcards/lease. The point is that everyone on this forum swears by PIF but in truth. I got my largest CLI while carrying a small balance for like 2 months. But to prevent everyone from posting the same answers I think we can consider this conversation closed

[Anonymous]

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@Josh2942 wrote:
800%?

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You said paying 16% in interest for a loan was "great."  Yet, it is 8 times, 800%, the 2% in rewards people get excited over for not 5% categories.  So, it doesn't make sense to cancel all your reward money for the year, and beyond over paying a "great" interest loan by carrying a balance for a month or two.  It's not fear, it's simple math.

[Anonymous]

why would you carry balance and pay for interest when you can pay in full? I think banks make enough money, If i wanna give away money, I'll just give a dollar to a homeless.

[Josh2942]

It's certainly not 16% it's 16% APR which is nothing. Furthermore I have made more than 2500 in cash back. All of my family has an employee credit card and my fiance maxes out the category plus bonuses for the year. It's a small price to pay.