Originally Posted by jdavionic
Somehow we managed to run up a balance on a credit card that was previously at 0 balance. It happened over the holidays. Today I just paid the remaining amount off. Back to a 0 balance.
We have 2 more cards to get paid off. I'm hoping to get the second paid off with our tax return.
It's amazing how quickly you can acquire a balance. On the one that we just paid off, I swear in a blink of an eye, we were suddenly over $1000. Now I get to smile seeing current balance at 0.
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I never carry a credit card balance and I understand being debt free, but I also understand that I need to balance it out with not spending cash upfront if I am getting a good financing deal so that I can spread out the costs over time.
For example, I am currently in the process of replacing an old car which is going through its death throes with a newer (but still used) truck which has less than 1/2 the mileage and is infinitely more useful in an emergency situation, being a full sized truck, all the while spreading out the costs to less than $170/month over 4 years with zero cash out of pocket at 2.9%.
Then when the old jalopie gets sold, whatever I get, I will just leave it in the bank and let it pay for the $170 per month until it runs out so I am really not experiencing anything out of pocket at least for the duration. I could have paid for the truck outright with cash and be done with it, but why?
Say what you will about the American dollar being worthless or on the verge of collapse, but for now, if I can minimize immediate outlays in exchange for something of use, I will still prefer to have cash in the bank.