Credit card question

Reverend Conehead

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Kinda dry topic, I know. I won't be traveling back in time or putting some voodoo curse on Amber Heard, but I don't know that much about finance, so here's my question.

I've been paying down a credit card with each paycheck. I get paid every two weeks, so every 2 weeks, more gets paid down. Of course, the billing cycle is every month, not every two weeks. I'm just trying to really keep on this. I want the debt killed off ASAP. So the first payment more than takes care of the minimum payment, and the second payment pays down even more. Could that second payment kill off the next minimum payment? Or does it just pay more of the debt down this billing cycle, and you can't do anything about the next minimum payment until you're actually in that billing cycle? Make sense? I think it's the latter, but I'm not sure.

My strategy is to always pay way more than the minimum, if at all possible. I want to pay as much down as I can without suddenly making me unable to afford my normal expenses. I went for years without any credit card debt because I didn't have any credit cards. I want it all GONE! You hear about people with so much stinking credit card debt that they can't even afford their minimum payment. I'm determined not to let that be me.

I've put payment reminders in my Google calendar just in case a bill gets lost in the mail, I'll still know when it's due, and so I'll log in to pay it. Not gonna let this bite me in the butt like so many people do.
 

Manwiththeplan

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I think everything in a billing cycle goes towards that month and isn't applicable to future billing cycles
 

CyberB0b

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Don’t put anything down on your credit card that you can’t pay off before the billing cycle. 18%+ interest is really tough to dig your way out of.

The only way a payment now will stop a minimum payment later is if you pay off the entire balance.
 

big dog cowboy

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My strategy is to always pay way more than the minimum, if at all possible. I want to pay as much down as I can without suddenly making me unable to afford my normal expenses.
Make the minimum payments and save as much as you can while still being able to pay normal expenses.

Every couple of months roll your savings into a payment.

That way you won't have to sweat having the money to pay the day to day normal expenses.
 

jazzcat22

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Your minimum payment will be reduced as this is how they sucker people in. By paying the minimum they still maximize the interest.

Depending how they charge interest, by paying every two weeks you may not be saving on any interest. However you are paying it down. Be disciplined with what your plan is and stick to it. Different things work for different people.

As mentioned make minimum payments and save up then pay it off. However, that money saved may be tempting to splurge on something else.

Paying more than the minimum saves you money as each month you pay less interest. As your savings account pays much less interest than the credit card charges. I say pay the extra.
Better to pay down 18% interest as opposed to only saving 1% interest.

Like right now. My mortgage is 2.875% as I paid extra each month. When bank interest paid less than 1%.
Now with interest rates on bonds and CD’s are 5%, I can make more on that then paying it extra on the house.

Also if I could find a stock that I can make even 3% on I do that.
 

Rockport

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Kinda dry topic, I know. I won't be traveling back in time or putting some voodoo curse on Amber Heard, but I don't know that much about finance, so here's my question.

I've been paying down a credit card with each paycheck. I get paid every two weeks, so every 2 weeks, more gets paid down. Of course, the billing cycle is every month, not every two weeks. I'm just trying to really keep on this. I want the debt killed off ASAP. So the first payment more than takes care of the minimum payment, and the second payment pays down even more. Could that second payment kill off the next minimum payment? Or does it just pay more of the debt down this billing cycle, and you can't do anything about the next minimum payment until you're actually in that billing cycle? Make sense? I think it's the latter, but I'm not sure.

My strategy is to always pay way more than the minimum, if at all possible. I want to pay as much down as I can without suddenly making me unable to afford my normal expenses. I went for years without any credit card debt because I didn't have any credit cards. I want it all GONE! You hear about people with so much stinking credit card debt that they can't even afford their minimum payment. I'm determined not to let that be me.

I've put payment reminders in my Google calendar just in case a bill gets lost in the mail, I'll still know when it's due, and so I'll log in to pay it. Not gonna let this bite me in the butt like so many people do.
It’s great to have a zero balance on your credit card(s) but if you plan on traveling you better have one .
 

Runwildboys

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At one time I had $14000 on my credit card, mainly because I had a dog which required a lot of veterinary visits. Had I paid the minimum, without ever using the card again, it would have taken me 27 years to pay it off, at something like $300/mo.

I took out a low interest home equity loan and paid off the card. I just made my last payment this month, which is the 10 year mark, at $146/mo.
 

kskboys

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How are you paying it every 2 weeks? Never heard of a CC that didn't bill monthly.
 

JD_KaPow

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How are you paying it every 2 weeks? Never heard of a CC that didn't bill monthly.
You can make payments to your credit card anytime you like. You don't have to wait for a bill. I make payments several times a month just to keep basically a zero utilization, which does wonders for your credit rating.
 

CyberB0b

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Make the minimum payments and save as much as you can while still being able to pay normal expenses.

Every couple of months roll your savings into a payment.

That way you won't have to sweat having the money to pay the day to day normal expenses.
This method pays more interest. You should have an emergency fund and then focus on paying down the highest interest debt you can. I’d look into a zero interest balance transfer card. They’ll charge like 3% to roll it, but you’ll have 18 months to pay it off. Don’t do it unless you can really pay it.
 

jazzcat22

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This method pays more interest. You should have an emergency fund and then focus on paying down the highest interest debt you can. I’d look into a zero interest balance transfer card. They’ll charge like 3% to roll it, but you’ll have 18 months to pay it off. Don’t do it unless you can really pay it.
Yes that is a way to go also.

Also, different strategies as to paying down debt if several cards or more are owed. Depending ones situation.
You can also pay off the lowest balance first, regardless of minimum payment or interest.

Pay off the lowest balance, then take that monthly payment and pay extra to the next lowest. You feel. a sense of accomplishment. Then as you see that one drop, do the same to the next one.
Then when you get to the highest balance, and only one left, you can be making double or more payments, then it drops fast.
 

jazzcat22

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You can make payments to your credit card anytime you like. You don't have to wait for a bill. I make payments several times a month just to keep basically a zero utilization, which does wonders for your credit rating.
Yes, keep them paid off. Even though in some situations one has to carry a balance for a while, that is understandable.
I have all my utilities and other items automatically charged to a credit card. Then I pay them off as soon as I get the e-maill saying it is due. Plus you get the reward points.
I got my last iPhone using rewards points that way.
 

DanteEXT

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Yes, keep them paid off. Even though in some situations one has to carry a balance for a while, that is understandable.
I have all my utilities and other items automatically charged to a credit card. Then I pay them off as soon as I get the e-maill saying it is due. Plus you get the reward points.
I got my last iPhone using rewards points that way.
I like using the rewards points as statement credits. Save them up for a bit, maybe use them to cover a gas fill-up, cut a grocery bill down, or maybe xmas, stuff like that.
 

kskboys

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Probably paying online.
You can make payments to your credit card anytime you like. You don't have to wait for a bill. I make payments several times a month just to keep basically a zero utilization, which does wonders for your credit rating.
I'm sooooooooooooooooooooo old!!!!!!!!!!!!!!!!!!!!!!!! I don't pay online, so I didn't even consider that!
 

kskboys

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I like using the rewards points as statement credits. Save them up for a bit, maybe use them to cover a gas fill-up, cut a grocery bill down, or maybe xmas, stuff like that.
I use 3-5 credit cards. I simply let the cashback accumulate, and get cash in December. I generally get $300-500 back in December, the month where I can really use it.

Yes, I pay my balance off every month. If you don't do this, then either get rid of the cards or get to where you do.
 

gtb1943

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In this day when so many people live paycheck to paycheck, all too many get ensnared in credit card debt.

You pretty much have to have some kind of card anymore. Direct Debit cards that can be used like credit cards that take the money right out of your checking account is the best way to go.

But one has to be ready for emergencies and hardly anyone has much in the way of savings if you are paycheck to paycheck.

Usually the best deals on credit cards come from credit unions BUT beware; many of those cards claiming to be by the credit union are actually from banks.

Shop around; look for cards with lower interest rates and don't get conned by introductory rates: those almost always become high interest rate cards once that period is over.
 

jazzcat22

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I use 3-5 credit cards. I simply let the cashback accumulate, and get cash in December. I generally get $300-500 back in December, the month where I can really use it.

Yes, I pay my balance off every month. If you don't do this, then either get rid of the cards or get to where you do.
I have not had a credit card balance in over 20 years. Funny how I got out of debt after my divorce. :laugh:

Yeah pay them off. Pay them off every month.
 

jazzcat22

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Shop around; look for cards with lower interest rates and don't get conned by introductory rates: those almost always become high interest rate cards once that period is over.
Yes.
As they know most people will get the introductory rate or no interest balance transfer (well they have the 3% fee which is like interest). As they know most will not pay that off. Many will think no payments then wham, all of a sudden it is due, and they can't pay, and get hit with a whopping interest added. People need to watch out for that.
I had a few friends that did that. Then claimed they were cheated.
The interest still accumulates for if not paid off.
 

kskboys

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In this day when so many people live paycheck to paycheck, all too many get ensnared in credit card debt.

You pretty much have to have some kind of card anymore. Direct Debit cards that can be used like credit cards that take the money right out of your checking account is the best way to go.

But one has to be ready for emergencies and hardly anyone has much in the way of savings if you are paycheck to paycheck.

Usually the best deals on credit cards come from credit unions BUT beware; many of those cards claiming to be by the credit union are actually from banks.

Shop around; look for cards with lower interest rates and don't get conned by introductory rates: those almost always become high interest rate cards once that period is over.
If you are paycheck to paycheck, get a 2nd job. Many people have two jobs.
 
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