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stop using card and pay in cash /or use cash to pay the bill off?

(8 Posts)
Tigi Tue 25-Sep-07 14:23:23

Dilemma, I have a bonus next month, and wonder about my credit card bill outstanding.

Usually, I get paid, and pay off (some) of my credit card bill, and then for the rest of the month use my credit card to pay my outgoings. I use it for everything - food petrol, shopping, everything, no cash, because it has paid off the previous months bill...Do you see what I mean?

This month I could reverse it, by leaving myself enough in cash to get through the month, and pay the surplus off the bill, so i don't need to use the card at all.
My bill always has a balance left, I'll never repay it, even if i used all my bonus this month, although it would obviously get me further down.

My bill worries me!
thanks

whomovedmychocolate Tue 25-Sep-07 14:24:55

Seriously??? If you have debt you don't really have money IYSWIM, pay it off and look to budgeting in the future. Being debt free is lovely and you feel so much more in control. Be brave, I know you want something nice for yourself, but what nicer thing than knowing you have no outstanding cc bill?

Tigi Tue 25-Sep-07 14:26:57

My bill is just day to day stuff, no excesses!

fingerwoman Tue 25-Sep-07 14:27:58

yes, pay it off. think of all the money you are wasting paying interest on your credit card.
the less you have on it, the less interest you'll pay and the quicker you'll clear it

Hulababy Tue 25-Sep-07 14:29:19

I would pay off as much as the credit card bill as you can. The interest rates are sky high normally.

We do use our CC for all purchases throughout the month - in order to get the best out of our loyalty stuff, etc. But we make sure we can always pay the whole lot off at the end of every month.

Tigi Tue 25-Sep-07 14:31:29

I know i do try to pay off what i have spent, but some months it just doesn't. But I will never be in the position to NOT use it, as this months salary is to pay last months bill. So this month I have the chance to reverse it!
There is a balance of approx £4000 never moved.

LittleMinx Tue 25-Sep-07 17:36:12

Hulababy.... totally agree

I am same as you, put everything on credit card so i get loyalities but it gets paid off in full every month. I HATE paying interest on anything and would rather save for something.

Helennn Thu 27-Sep-07 09:11:56

Tigi - don't know if you're still reading this but have you looked into doing a balance transfer to a 0% interest card, or a life of balance deal? Then, whatever you are saving in interest would make a bigger dent in the balance. If you were paying say 17% interest on a £4000 balance you would pay approx. £680 interest a year. If you moved to a 0% interest card for a year with a 2% balance transfer fee you would pay £80 interest for the year, so another £600 would go to bring the balance down. See here.

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