Wow this tv lasted a whole year

[DaFace]

Originally Posted by R8ers

good job but blank out the ending in numbers....

You are one.... lets see who else is telling the truth here

I'm not going to spend an hour going back month-by-month, but here's my most recent one my primary card.



And before you ask, yes, I'll be paying the full $4923 when it's due. Right now, it's still earning me interest for another week.

[Saul Good]

Originally Posted by DaFace

I'm not going to spend an hour going back month-by-month, but here's my most recent one my primary card.



And before you ask, yes, I'll be paying the full $4923 when it's due. Right now, it's still earning me interest for another week.

Maybe I'm reading this wrong, but it looks like you had a $2364 balance from last month.

Do you cash out stocks every month to pay your credit card bill, or do you pay out of your checking account? Assuming that you pay out of your checking account, I don't see where you are making any money on the float.

[rageeumr]

Originally Posted by Saul Good

Maybe I'm reading this wrong, but it looks like you had a $2364 balance from last month.

Do you cash out stocks every month to pay your credit card bill, or do you pay out of your checking account? Assuming that you pay out of your checking account, I don't see where you are making any money on the float.

Not my account, but I'll answer anyway.

The $2,364 is the ending balance from last month. That is the amount that must be paid in the grace period (which I think is now legally mandated at 21 days IF the card offers a grace period) to avoid finance charges. You can see he made that payment plus some additional (likely paid off the "current balance" at some point during the month) so he avoided any finance charges.

[CrazyPhuD]

Originally Posted by Saul Good

Maybe I'm reading this wrong, but it looks like you had a $2364 balance from last month.

Do you cash out stocks every month to pay your credit card bill, or do you pay out of your checking account? Assuming that you pay out of your checking account, I don't see where you are making any money on the float.

Don't keep significant cash in a checking account. Keep it in a savings and transfer when needed. While not as good as it used to there are still plenty that pay 1-1.5%. You always need some degree of liquidity anyway.

[Saul Good]

Originally Posted by CrazyPhuD

Don't keep significant cash in a checking account. Keep it in a savings and transfer when needed. While not as good as it used to there are still plenty that pay 1-1.5%. You always need some degree of liquidity anyway.

So if someone charges $20,000 per year with an average float of 15 days while earning 1.25% interest, they make $125 per year. It seems like more trouble than it's worth, but that's just me.

[DaFace]

Originally Posted by Saul Good

So if someone charges $20,000 per year with an average float of 15 days while earning 1.25% interest, they make $125 per year. It seems like more trouble than it's worth, but that's just me.

I don't disagree with that. It's really not a big deal though. When I make the payment online, I just change the due date. That's really all it takes.

To be clear, though, my philosophic difference with R8ers is much more about the "never use credit cards" idea (due to the rewards and benefits) than the "when to pay your credit card bill in the course of the month." The latter is a matter of pocket change. The former can be very significant.

[Saul Good]

Originally Posted by DaFace

I don't disagree with that. It's really not a big deal though. When I make the payment online, I just change the due date. That's really all it takes.

To be clear, though, my philosophic difference with R8ers is much more about the "never use credit cards" idea (due to the rewards and benefits) than the "when to pay your credit card bill in the course of the month." The latter is a matter of pocket change. The former can be very significant.

I've heard him hedge on that a little bit and say that credit cards are okay if you don't carry a balance. Of course, I've heard him say the opposite as well.

I only use a debit card, and I've been debt free other than my mortgage for a couple of years now. I don't think I will ever take out another loan unless I buy another house. I'd love to get my house paid off as well and just pay cash if I ever move, but I've still got a long way to go in that regard.

I have a degree in Finance, and I understand that a lot of my counterparts don't like the idea of having a paid-for house, but I also know how many broke financial gurus there are out there. A lot of financial plans are great in theory, but human nature gets in the way more often than not.

[R8RFAN]

Originally Posted by DaFace

I don't disagree with that. It's really not a big deal though. When I make the payment online, I just change the due date. That's really all it takes.

To be clear, though, my philosophic difference with R8ers is much more about the "never use credit cards" idea (due to the rewards and benefits) than the "when to pay your credit card bill in the course of the month." The latter is a matter of pocket change. The former can be very significant.

I have 3 accounts
1 savings and 2 debit accounts one online one brick and mortar, direct deposit goes to brick and mortar
I have 1 credit card, if I do not have enough cash in either of the two debits and it's after hours I will use the credit card. I think I used it twice last year and one was for this broke TV BUT IT WAS PAID IN FULL AS SOON AS THE BILL HIT THE MAILBOX.

If someone is barely making enough to pay of the credit cards a month, it's very easy to get into the habit of letting this or that slide til next month, when this happens a man may be more likely to take a day off from work here and there and let that slide at the end of the month too... Before long, the man is up to his ass in debt and blaming the banks for the interest rates...

Rewards are great as long as you are not going into debt to get them...

[DaFace]

Originally Posted by R8ers

I have 3 accounts
1 savings and 2 debit accounts one online one brick and mortar, direct deposit goes to brick and mortar
I have 1 credit card, if I do not have enough cash in either of the two debits and it's after hours I will use the credit card. I think I used it twice last year and one was for this broke TV BUT IT WAS PAID IN FULL AS SOON AS THE BILL HIT THE MAILBOX.

If someone is barely making enough to pay of the credit cards a month, it's very easy to get into the habit of letting this or that slide til next month, when this happens a man may be more likely to take a day off from work here and there and let that slide at the end of the month too... Before long, the man is up to his ass in debt and blaming the banks for the interest rates...

Rewards are great as long as you are not going into debt to get them...

No arguments. I've said all along that you have to be careful with them and that many people would be much better off going cash only. My point all along has simply been that they can have their benefits for those don't spend more than they can immediately pay off.

[DaFace]

Originally Posted by Saul Good

Maybe I'm reading this wrong, but it looks like you had a $2364 balance from last month.

Do you cash out stocks every month to pay your credit card bill, or do you pay out of your checking account? Assuming that you pay out of your checking account, I don't see where you are making any money on the float.

The $2,364 was the statement balance. Unless you aren't using the card, that'll never be zero.

As for the nuts and bolts, it doesn't really make a HUGE difference, but I pay out of a 1.5 APY savings account on the due date from the credit card company (and not before). Doing it that way is probably worth maybe $20-$30 in interest over the course of the year. Not a huge deal, but since it's easy to do, why not?

[Saul Good]

Originally Posted by DaFace

The $2,364 was the statement balance. Unless you aren't using the card, that'll never be zero.

As for the nuts and bolts, it doesn't really make a HUGE difference, but I pay out of a 1.5 APY savings account on the due date from the credit card company (and not before). Doing it that way is probably worth maybe $20-$30 in interest over the course of the year. Not a huge deal, but since it's easy to do, why not?

Makes sense. I'm not saying that you shouldn't do it. I just want to be clear that the rest of the world who isn't taking advantage of the float isn't missing out on an embarrassment of riches or anything.